4 Telecom Stocks that Offer Growth and Value

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

The global telecom industry is evolving with the adoption of 5G and increasing demand for broadband services amid the remote working environment. So, we think fundamentally sound telecom companies, Lumen (LUMN), KT Corporation (KT), VEON Ltd. (VEON), and InterDigital (IDCC), could be solid investment bets now. So, let’s examine these names.

shutterstock.com – StockNews

The telecom industry has been growing rapidly over the past few years, driven by the global 5G race and increased demand for personal broadband. Substantial government support and a nationwide 5G rollout should shape the telecom sector’s growth over the long term.

the latest tech news, global tech news daily, tech news today, startups, usa tech, asia tech, china tech, eu tech, global tech, in-depth electronics reviews, 24h tech news, 24h tech news, top mobile apps, tech news daily, gaming hardware, big tech news, useful technology tips, expert interviews, reporting on the business of technology, venture capital funding, programing language

The $1.2 trillion Infrastructure Investment and Jobs Act passed last year has earmarked $65 billion for nationwide broadband adoption, boosting the domestic telecom sector. In addition, as countries worldwide roll out 5G services, the telecom industry is expected to grow at a 6% CAGR over the next three years to $3461.03 billion by 2025. According to a Market Research report, the global 5G service market is currently worth more than $21.53 billion and is expected to reach approximately $85.84 billion by the end of 2023.

Given these factors, we think it  advisable to invest in fundamentally strong Telecom Stocks: Lumen Technologies, Inc. (LUMN), KT Corporation (KT), VEON Ltd. (VEON), and InterDigital, Inc. (IDCC).

Global Tech News Daily

Lumen Technologies, Inc. (LUMN)

LUMN in Monroe, La., is a facilities-based technology and communications company that delivers integrated communications to residential and business customers in the U.S. and internationally. It operates through five segments: International and Global Accounts Management; Enterprise; Small and Medium Business; Wholesale; and Consumer.

Global Tech News Daily

This month, LUMN secured a task order worth more than $1.2 billion from the U.S. Department of Agriculture (USDA) to deliver network services to more than 9,500 USDA locations across the U.S. and abroad. Its receipt of the order reflects LUMN’s leading market position in the U.S. telecom industry.

Last December, LUMN received an order from the U.S. Army Reserve Command (USARC) to deliver Virtual Private Network (VPN) services to more than 650 USARC locations across the U.S. The 11-year contract worth $23 million is expected to boost LUMN’s revenue over the long term.

LUMN’s free cash flow increased 29% year-over-year to $1.04 billion in its fiscal third quarter, ended Sept. 30, 2021. LUMN’s net income grew 48.6% year-over-year to $544 million. And the company’s net income per common share increased 50% from its year-ago value to $0.51.

LUMN is relatively undervalued compared to its peers. In terms of forward non-GAAP P/E, LUMN is currently trading at 6.23x, which is 63.9% lower than the 17.29x industry average. Its 0.62 forward Price/Sales multiple  is 62.2% lower than the 1.65x industry average. And its 1.94 and 4.97  respective forward Price/Cash Flow and EV/EBITDA ratios compare with 9.81 and 9.23 industry averages.

The company also has an impressive growth history. LUMN’s EBIT has risen at  a 6.9% CAGR over the past three years.

The $0.54 consensus EPS estimate for its fiscal fourth quarter, ended December 2021, represents 12.3% year-over-year growth. Also, LUMN has an impressive earnings surprise history; it surpassed the consensus EPS estimates in each of all the trailing four quarters.

The stock gained marginally over the past three months to close yesterday’s trading session at $11.88.

LUMN’s POWR Ratings reflect this promising outlook. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.

LUMN has a B grade for Value and Growth. Within the Telecom – Domestic industry, it is ranked #3 of 19 stocks. To see additional POWR Ratings (Momentum, Stability, Quality, and Sentiment) for LUMN, click here.

KT Corporation (KT)

KT in Seongnam, South Korea, is a telecommunications company that offers integrated telecommunications and platform services in Korea and internationally. It provides services that include fixed-line telephone, broadband Internet access, media and content,  IT and network, and more.

This month, KT launched its new maritime brand XWAVE, targeting the Southeast Asian market. The move is expected to boost KT’s business growth by extending its global footprint. KT has the potential to grow 27.5% annually through this expansion.

Last December, KT made a $5 million equity investment in NeuroSigma Inc. The investment follows the companies’ digital health partnership in June 2021. Regarding this, KT’s Senior Executive Vice President Jae-ho Song said, “Through this investment, we will seek mutual growth of the two companies and support the Monarch eTNS System’s commercialization, development of additional digital therapeutic indications, and acceleration of NeuroSigma’s business growth trajectory.”

In its fiscal 2021 third quarter, ended September 30, KT’s operating revenue increased 3.6% year-over-year to KRW6,217.4 billion ($5.16 billion). Its  operating income increased 30.0% year-over-year to KRW382.4 billion ($317.61 million). The company’s net income rose 46.9% from the same period last year to KRW337.7 billion ($280.48 million), while its  EBITDA increased 6.5% from its  year-ago value to KRW1,277.5 billion ($1.06 billion).

KT is trading at a discount to its peers. In terms of forward EV/Sales, it  is currently trading at 0.72x, which is 69.9% lower than the 2.40x industry average. Its 0.40 forward Price/Sales multiple is 76.1% lower than the 1.65x industry average.

The company’s financials have grown substantially over the past three years. KT’s revenues have risen at a 24.5% CAGR over the past three years. And its EPS has grown at a 25.6% CAGR, while its levered free cash flow has improved at a 122.7% CAGR over the past three years.

Analysts expect KT’s revenue for its fiscal year 2022 to be  $16.03 billion, representing a 3.4% rise year-over-year. The Street expects the company’s EPS for fiscal 2022 to come in at $1.63, representing a 5.1% increase year-over-year.

Shares of KT have increased 18% in price over the past year and closed yesterday’s trading session at $12.70.

KT has an overall A rating, which translates to Strong Buy in our POWR Ratings system. It has an A  grade for Value and B for Growth, Stability, and Sentiment. It is ranked #4 of 49 stocks in the A-rated Telecom – Foreign industry.

Click here to see KT ratings for Momentum and Quality.

VEON Ltd. (VEON)

VEON is a Dutch multinational telecommunication services company. It provides mobile and fixed-line telecommunication services. It operates in the regions of Asia, Africa, and Europe. VEON is headquartered in Amsterdam, the Netherlands.

Last month, VEON partnered with Moscow-based Yandex to launch its first joint tariff plan. The company is expected to realize profits from this joint venture. VEON also announced bank financing of RUB 90 billion (approximately $1.16 billion). The proceeds are expected to fund its general corporate expenses.

In its fiscal 2021 third quarter, ended September 30, VEON’s total revenues increased 10.2% year-over-year to $2.01 billion. VEON’s EBITDA increased 8.6% year-over-year to $889 million. The company’s profit for the period rose 130.2% from the same period last year to $195 million.

In terms of forward non-GAAP P/E, VEON is currently trading at 4.87x, which is 71.9% lower than the 17.29x industry average. Its 0.29 forward Price/Sales multiple is 82.4% lower than the 1.65x industry average. VEON’s 3.38 forward EV/EBITDA ratio compares with the 9.23 industry average.

VEON’s EBIT and net income have risen at CAGRs of 3.7% and 13.3%, respectively, over the past three years.

The $2.04 billion consensus revenue estimate for its fiscal fourth quarter, ended December 31,2021, represents 2.2% year-over-year growth. The $0.12 consensus EPS estimate  for the current quarter indicates  500% year-over-year growth.

Shares of VEON surged 3.8% in price intraday to close yesterday’s trading session at $1.38.

VEON has an overall A rating, which translates to a Strong Buy in our POWR Ratings system. It has an A grade for Value and a B grade for Growth, Stability, and Quality. It is ranked #5 of 49 stocks in the Telecom – Foreign industry.

Click here to see VEON ratings for Momentum and Sentiment.

InterDigital, Inc. (IDCC)

IDCC is a technology research and development company. The Wilmington, Del.-based concern designs and develops technologies in the U.S. and internationally. The company offers technology solutions for mobile devices, wireless products, and networks.

Earlier this month, IDCC extended its business partnership and renewed its patent license with Sony Corporation of America. The extended partnership should strengthen IDCC’s portfolio of assets in wireless technologies and boost the revenue stream.

IDCC’s total revenue increased 64% year-over-year to $143.50 million in its fiscal third quarter ended September 30, 2021. IDCC’s net income grew 15.1% year-over-year to $25.21 million. And the company’s net income per common share increased 9.2% from its  year-ago value to $0.83.

IDCC is relatively undervalued compared to its peers. In terms of forward non-GAAP P/E, IDCC is currently trading at 22.29x, which is marginally lower than the 22.31x industry average. And its 11.37 forward EV/EBITDA multiple is 21.8% lower than the 14.53x industry average.

The $101.45 million consensus revenue estimate for its fiscal fourth quarter, ended December 2021, represents11.7% year-over-year growth. The $0.68  consensus EPS estimate for the current quarter indicates 106.1% year-over-year growth. Also, IDCC has an impressive earnings surprise history; it surpassed the consensus EPS estimates in each of all the trailing four quarters.

Over the past six months, shares of IDCC have increased marginally in price and closed yesterday’s trading session at $65.74.

IDCC has an overall B rating, which translates to Buy in our proprietary rating system. The stock also has an A grade for Growth and a B grade for Value and Sentiment. Within the Telecom – Domestic industry, it is ranked #1 of 19 stocks.

To see additional POWR Ratings (Momentum, Stability, and Quality) for IDCC, click here.

Want more stocks like these?

If you would like to see more top growth stocks, then you should check out our free special report:

9 “MUST OWN” Growth Stocks

What makes them “MUST OWN”?

All 9 picks have strong fundamentals and are experiencing tremendous momentum. They also contain a winning blend of growth and value attributes that generates a catalyst for serious outperformance.

Even more important, each recently earned a Buy rating from our coveted POWR Ratings system where the A rated stocks have gained +31.10% a year.

Click below now to see these top performing stocks with exciting growth prospects:

9 “MUST OWN” Growth Stocks

If you would like to see more top value stocks, then you should check out our free special report:

7 SEVERELY Undervalued Stocks

What makes these stocks great additions to any portfolio?

First, because they are all undervalued companies with exciting upside potential.

But even more important, is that they are all top Buy rated stocks according to our coveted POWR Ratings system. Yes, that same system where top-rated stocks have averaged a +31.10% annual return.

Click below now to see these 7 stellar value stocks with the right stuff to outperform in the coming months.

7 SEVERELY Undervalued Stocks


LUMN shares were trading at $11.87 per share on Friday morning, down $0.01 (-0.08%). Year-to-date, LUMN has declined -5.42%, versus a -9.72% rise in the benchmark S&P 500 index during the same period.



About the Author: Mangeet Kaur Bouns


Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet’s looks to help retail investors understand the underlying factors before making investment decisions.

More…

The post 4 Telecom Stocks that Offer Growth and Value appeared first on StockNews.com

News Related

OTHER NEWS

Adani Wilmar Listing: Stock debuts at a 4% discount to IPO price at Rs 221

Adani Wilmar | The company made its debut on the bourses on February 8. The issue price has been fixed at Rs 230 per share. FMCG food company Adani Wilmar ... Read more »

Police searching for missing 13-year-old girl in Bradford

© West Yorkshire Police Kelsey Glen Police are searching for a 13-year-old girl who has gone missing in Bradford. Kelsey Glen was last seen on Little Horton Lane at around ... Read more »

Who's the oldest bowler to take a five-for in a Test?

© Getty Images Arthur Morris was the first batter to score a hundred in each innings of his first-class debut © Getty Images Has anyone scored two centuries in a ... Read more »

Lazy Days Holdings (LAZY) Gains As Market Dips: What You Should Know

In the latest trading session, Lazy Days Holdings (LAZY) closed at $16.53, marking a +0.98% move from the previous day. The stock outpaced the S&P 500’s daily loss of 0.37%. ... Read more »

Fisker Inc. (FSR) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Fisker Inc. (FSR) closed at $11.24, marking a -0.88% move from the previous day. This change lagged the S&P 500’s 0.37% loss on the day. ... Read more »

Triton International (TRTN) Gains As Market Dips: What You Should Know

Triton International (TRTN) closed the most recent trading day at $61.10, moving +0.31% from the previous trading session. This change outpaced the S&P 500’s 0.37% loss on the day. – ... Read more »

Asbury Automotive Group (ABG) Dips More Than Broader Markets: What You Should Know

Asbury Automotive Group (ABG) closed the most recent trading day at $151.49, moving -0.81% from the previous trading session. This move lagged the S&P 500’s daily loss of 0.37%. – ... Read more »

Cushman & Wakefield (CWK) Gains As Market Dips: What You Should Know

Cushman & Wakefield (CWK) closed the most recent trading day at $21.46, moving +1.18% from the previous trading session. This change outpaced the S&P 500’s 0.37% loss on the day. ... Read more »

Wesco International (WCC) Gains As Market Dips: What You Should Know

Wesco International (WCC) closed at $121.43 in the latest trading session, marking a +1.57% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.37%. – ... Read more »

Big Tech Looks To Buy Beaten Down Innovation-Fueled Entrants

The recent rate-fueled valuation crush among next-gen tech has created some ripe acquisition opportunities for cash-rich mega-cap tech. After rapidly deteriorating investor sentiment, Peloton PTON is the latest acquisition target, ... Read more »

HP (HPQ) Stock Moves -0.29%: What You Should Know

In the latest trading session, HP (HPQ) closed at $37.49, marking a -0.29% move from the previous day. This change was narrower than the S&P 500’s daily loss of 0.37%. ... Read more »

One Stop Systems, Inc. (OSS) Flat As Market Sinks: What You Should Know

In the latest trading session, One Stop Systems, Inc. (OSS) closed at $4.05, marking no change from the previous day. This change was narrower than the S&P 500’s daily loss ... Read more »

Luminar Technologies, Inc. (LAZR) Gains As Market Dips: What You Should Know

Luminar Technologies, Inc. (LAZR) closed at $14.84 in the latest trading session, marking a +0.27% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.37%. ... Read more »

NCLT okays Taguda's revival plan for Ushdev International

The dedicated bankruptcy court has approved Taguda revival plan for BSE-listed Ushdev International. The company, featuring in the central bank’s second list of large defaulters, was referred for mandatory resolution ... Read more »

Rel Capital resolution: Lenders hire KPMG India, L&L Partners

Lenders to Reliance Capital have appointed KPMG India as their process advisor andetL&L Partners the legal counsel to help negotiate the challenges in the resolution of Anil Ambani-promoted Reliance Capital, ... Read more »

Soaring refining margin bodes well for oil firms

The industrial complex in the southern port city of Ulsan where production bases of Korea’s major petrochemical companies are located (Yonhap)South Korean oil refiners’ key profitability measure has been rising ... Read more »

Buckle (BKE) Gains As Market Dips: What You Should Know

Buckle (BKE) closed at $37.24 in the latest trading session, marking a +1.36% move from the prior day. This change outpaced the S&P 500’s 0.37% loss on the day. – ... Read more »

AutoNation (AN) Dips More Than Broader Markets: What You Should Know

In the latest trading session, AutoNation (AN) closed at $103.57, marking a -0.46% move from the previous day. This change lagged the S&P 500’s 0.37% loss on the day. – ... Read more »

FuboTV Inc. (FUBO) Stock Moves -0.3%: What You Should Know

fuboTV Inc. (FUBO) closed at $10.07 in the latest trading session, marking a -0.3% move from the prior day. This change was narrower than the S&P 500’s 0.37% loss on ... Read more »

Fiverr International (FVRR) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Fiverr International (FVRR) closed at $81.01, marking a -0.52% move from the previous day. This change lagged the S&P 500’s daily loss of 0.37%. – ... Read more »

Sterling Construction (STRL) Gains As Market Dips: What You Should Know

Sterling Construction (STRL) closed at $27.51 in the latest trading session, marking a +1.63% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.37%. – ... Read more »

Boise Cascade (BCC) Gains As Market Dips: What You Should Know

Boise Cascade (BCC) closed at $77.20 in the latest trading session, marking a +0.69% move from the prior day. The stock outpaced the S&P 500’s daily loss of 0.37%. – ... Read more »

CRISPR Therapeutics AG (CRSP) Gains As Market Dips: What You Should Know

In the latest trading session, CRISPR Therapeutics AG (CRSP) closed at $62.36, marking a +0.76% move from the previous day. This move outpaced the S&P 500’s daily loss of 0.37%. ... Read more »

Bausch Health (BHC) Dips More Than Broader Markets: What You Should Know

Bausch Health (BHC) closed the most recent trading day at $24.39, moving -0.53% from the previous trading session. This move lagged the S&P 500’s daily loss of 0.37%. – Zacks ... Read more »

ETF Strategies to Consider for February as Fed's Rate Hike Nears

Wall Street has been mostly kind to investors so far in February after a tough January. Market participants are upbeat about improving U.S. economic conditions as reflected by encouraging fourth-quarter ... Read more »

Bank of Nova Scotia (BNS) Gains As Market Dips: What You Should Know

Bank of Nova Scotia (BNS) closed at $73.75 in the latest trading session, marking a +0.78% move from the prior day. This move outpaced the S&P 500’s daily loss of ... Read more »

Fox (FOXA) to Report Q2 Earnings: What's in the Offing?

Fox FOXA is set to report second-quarter fiscal 2022 results on Feb 9.For the quarter, the company’s current Zacks Consensus Estimate for earnings is pegged at breakeven against a loss ... Read more »

Generac Holdings (GNRC) Gains As Market Dips: What You Should Know

In the latest trading session, Generac Holdings (GNRC) closed at $279.97, marking a +0.01% move from the previous day. This move outpaced the S&P 500’s daily loss of 0.37%. – ... Read more »

Spirit And Frontier Announce $6.6 Billion Merger

Spirit Airlines Incorporated (NYSE:SAVE) and Frontier Group Holdings Inc (NASDAQ:ULCC) have announced a $6.6 billion merger to create one of the largest low-cost airlines in the U.S. The new airline ... Read more »

First Trust Energy AlphaDEX Fund (FXN) Hits a 52-Week High

The First Trust Energy AlphaDEX Fund FXN is probably a suitable pick for investors looking for momentum. FXN hit a 52-week high and is up 59.6% from its 52-week low ... Read more »

Meta Threatens To Close Facebook And Instagram In Europe Over Data Scramble

In a document filed with the U.S. Securities and Exchange Commission (SEC), Meta Platforms Inc (NASDAQ:FB) has warned it could be forced to close Facebook and Instagram in Europe if ... Read more »

19 year old killed in accidental shooting was former member of Dancing Dolls from Bring It television show

JACKSON, Miss. (WLBT) – New information on a shooting that left a 19 year old dead in Jackson this week. 19 year old Shakira Gatlin died Wednesday night on Barnes ... Read more »

Final moments of 'popular' Sheffield footballer Tom Collier who died in crash on way to match

© KickAbout Tom Collier, affectionately known as TC9 was killed while on his way to play in a cup game Police have named a man who died in a tragic ... Read more »

Stock futures inch higher after S&P, Nasdaq fall to start the week

U.S. stock index futures crept higher during overnight trading Monday, after the major averages moved between gains and losses during regular trading as the market awaits key inflation data later ... Read more »

ITV No Return viewers spot major flaws as Sheridan Smith drama begins

Sheridan Smith returned to the TV screen tonight in a brand new drama No Return. Fans were looking forward to the show after the success of Sheridan’s previous drama The ... Read more »

Channel 4 60 Days With The Gypsies viewers angry as kids shown killing animals with slingshots

Viewers were left uncomfortable after explorer Ed Stafford’s new show 60 Days with the Gypsies showed young Travellers killing squirrels and pigeons with slingshots. The new Channel 4 show aired ... Read more »

How a To-Don't List Can Help You Achieve Your Goals

To-do lists are helpful tools for many people, but they can quickly take over our lives, making daily living feel like just another item to cross off of a never-ending ... Read more »

Immunovant (IMVT) Reports Wider-Than-Expected Loss in Q3

Immunovant, Inc. IMVT reported a net loss of 36 cents per share in the third quarter of fiscal 2022 (ended Dec 31, 2021), wider than the Zacks Consensus Estimate of ... Read more »

Buckle's (BKE) Sales Run Continues in January, Comps Gain 4.2%

The Buckle, Inc. BKE looks well poised on the back of its robust strategic efforts, including strength in e-commerce business and an impressive sales trend. BKE has been putting up ... Read more »

6 Best-Leveraged ETF Areas of Last Week

Wall Street put up a moderate show last week with the S&P 500 (up 1.6%), the Dow Jones (up 1.1%), the Nasdaq Composite (up 2.4%) and the Russell 2000 (up ... Read more »