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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Telefonica (TEF)
Based in Madrid, Spain, Telefonica, S.A. provides mobile and fixed communication services in Europe and Latin America. In recent years, Telefonica has invested heavily in the deployment and transformation of its network to provide excellent connectivity in terms of capacity, speed, coverage and security. The business operations are classified according to the following segments.
TEF sits at a Zacks Rank #2 (Buy), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Diversified Communication Services industry's P/E of 18.9X, shares of Telefonica are trading at a forward P/E of 12.2X. TEF also has a PEG Ratio of 0.7, a Price/Cash Flow ratio of 10.9X, and a Price/Sales ratio of 0.6X.
A company's earnings performance is important for value investors as well. For fiscal 2025, two analysts revised their earnings estimate higher in the last 60 days for TEF, while the Zacks Consensus Estimate has increased $0.07 to $0.40 per share. TEF also holds an average earnings surprise of 18.3%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding TEF to their portfolios.
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Telefonica SA (TEF) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).