Is Vodafone Group (VOD) the Best Telecom Stock to Buy According to Hedge Funds?
We recently published a list of the 13 Best Telecom Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Vodafone Group Public Limited Company (NASDAQ:VOD) stands against other best telecom stocks.
The global telecom services market is estimated at $1.98 trillion as of 2024, according to Grand View Research. It is projected to grow at a CAGR of 6.5% from 2025 to 2030. This expansion is driven by the increasing expenditures on 5G infrastructure deployment, which is fueled by a shift in customer preference towards next-generation technologies and smartphone devices. Additionally, the rising number of mobile subscribers, the soaring demand for high-speed data connectivity, and the growing need for value-added managed services are key factors that contribute to this market growth.
Initially a trend in 2019, 5G has solidified its position as a critical driver of the industrial economy. The Future of Commerce reported that the global 5G connections are projected to surge from 1.76 billion in 2023 to 7.9 billion by 2028. This indicates that 5G will constitute over half of all connections, as per reports from 5G Americas and Omdia. This expansion is driven by investments from government and telecom companies, as well as the demand for faster internet speeds, lower latency, and improved battery life. While 5G deployment continues, 6G is emerging and promises ultra-high data speeds via terahertz spectrum bands, low latency, and AI integration. It aims to revolutionize communication through applications like smart grids and immersive XR experiences. However, challenges like energy efficiency and responsible AI integration remain. Telecom companies stand to capture a $100 billion opportunity within the 5G economy.
AI is deeply ingrained in the telecom sector as well. It evolved from basic echo cancellation in the 1950s to sophisticated algorithms for network management and failure prediction. In 2025, AI's role will intensify, with global telco investments projected to rise from $3.34 billion in 2024 to $58.7 billion by 2032. AI is crucial in network topology improvements. It facilitates self-healing networks, automated transitions, and AR applications. It will drive 6G's evolution towards connected intelligence and enhance predictive maintenance, fault detection, security, and customer experiences through predictive and cognitive AI.
We used the Finviz stock screener to compile an initial list of top telecom stocks. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 900 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A customer receiving a mobile money transfer notification on their phone.
Number of Hedge Fund Holders: 24
Vodafone Group Public Limited Company (NASDAQ:VOD) is a telecom giant that delivers mobile and fixed connectivity services, alongside advanced enterprise solutions. These include cloud, IoT, and cybersecurity. With a strong presence in Europe and Africa, it also provides innovative digital services like M-PESA and integrated communication platforms.
The company is currently navigating a challenging German telecom market, which significantly impacted its overall performance. The company experienced a 3.8% year-over-year headwind in FQ2 2025 due to the MDU TV customer migration, with a 1.5% sequential drop from broadband price increases. The company anticipates this impact continuing into FQ3, before easing in FQ4.
Despite this, Vodafone Group (NASDAQ:VOD) is expanding its gigabit-capable broadband reach and now covers 75% of German households, which includes an additional 5 million through new fiber wholesale agreements. The company is aiming for a U-shaped recovery in Germany, with FQ2 marking the bottom. It anticipates positive growth returning by FY26. It's monitoring the increasingly competitive German mobile market, where it's maintaining pricing discipline amidst aggressive moves from competitors.
Overall, VOD ranks 12th on our list of the best telecom stocks to buy according to hedge funds. While we acknowledge the growth potential of VOD, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VOD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
GitLab Inc (GTLB) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic AI ...
Revenue: $214.5 million, a 27% increase year-over-year. Non-GAAP Operating Margin: 12.2%, compared to negative 2.3% in the previous year. Adjusted Free Cash Flow: $104.1 million, with a margin of 49%. Non-GAAP Gross Margin: 90% for the quarter. Dollar-Based Net Retention Rate (DBNRR): 122%. Total Annual Recurring Revenue (ARR): 10,104 customers with ARR of at least $5,000. Customers with $100,000+ ARR: Increased 26% year-over-year to 1,288. Guidance for Q2 FY26 Revenue: $226 million to $227 million. Guidance for FY26 Revenue: $936 million to $942 million. Cash and Investments: $1.1 billion at the end of the quarter. Warning! GuruFocus has detected 4 Warning Signs with GTLB. Release Date: June 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GitLab Inc (NASDAQ:GTLB) reported a 27% year-over-year increase in revenue, reaching $215 million for the first quarter. The company achieved a non-GAAP operating margin of 12%, highlighting significant year-over-year operating margin expansion. GitLab Inc (NASDAQ:GTLB) continues to see strong adoption of its AI-native DevSecOps platform, with strategic differentiators like cloud agnosticism and comprehensive solutions across the software development lifecycle. The company launched GitLab 18, introducing new product capabilities that enhance core DevOps, security, and AI functionalities. GitLab Inc (NASDAQ:GTLB) achieved FedRAMP Moderate authorization, which is expected to boost its public sector business with its Dedicated offering. The company's Q1 beat was described as one of the 'skinniest' since its IPO, indicating tighter performance margins. There was a noted deceleration in sequential customer adds, particularly in the $100,000 ARR cohort. GitLab Inc (NASDAQ:GTLB) experienced a back-end weighted linearity in the quarter, which could indicate potential challenges in deal closures. The company faces price sensitivity at the low end of the market, impacting new customer additions. Concerns were raised about the potential impact of AI on job growth in the software developer market, which could affect demand for GitLab's services. Q: How are customer conversations evolving with the rapid advancements in AI, particularly regarding code suggestion and completion? A: Bill Staples, CEO: Every customer conversation touches on AI. Customers are eager to use AI to enhance productivity, innovation, and quality. The market is rapidly evolving with new tools and techniques. Customers often experiment with multiple AI tools, including GitLab Duo, to find the best fit. This experimentation ultimately benefits GitLab, as more code creation leads to increased demand for GitLab's comprehensive platform for testing, validation, and deployment. Q: Can you explain the growth dynamics, given the fiscal Q1 results and the outlook for the year? A: Brian Robins, CFO: The quarter's results were as expected, with a mix favoring SaaS and back-end weighted linearity. The guidance remains unchanged, assuming consistent macroeconomic conditions. The growth in RPO, CRPO, and billings indicates strong underlying demand, despite a slightly narrower beat compared to previous quarters. Q: How is AI adoption affecting job growth in the software developer market, and what are the implications for GitLab? A: Bill Staples, CEO: AI is seen as a productivity enhancer rather than a job threat. Historically, advances in productivity have led to more opportunities. AI will likely increase the number of code creators and the volume of code, benefiting GitLab. Brian Robins, CFO, added that developer hiring is turning positive, and GitLab's market opportunity remains vast. Q: How does GitLab plan to capture value from AI-driven enhancements, given the current pricing model? A: Bill Staples, CEO: GitLab is focusing on creating value through AI by enhancing collaboration between humans and agents, maintaining security and privacy, and leveraging its unified platform for better context and outcomes. The introduction of Duo Chat and code suggestions in Premium and Ultimate tiers is part of a strategy to lower adoption barriers and provide a smooth upgrade path to more advanced AI capabilities. Q: What are the key differentiators in GitLab 18, and why were certain features included without additional charges? A: Bill Staples, CEO: GitLab 18 introduces centralized artifact management, improved CICD pipelines, and enhanced security features. The inclusion of Duo Chat and code suggestions in Premium and Ultimate tiers aims to eliminate adoption barriers and provide a seamless upgrade path. The strategy is to offer a friction-free AI experience, encouraging broader adoption and eventual upgrades to more comprehensive solutions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Stitch Fix Inc (SFIX) Q3 2025 Earnings Call Highlights: Revenue Growth Amid Client Challenges
Revenue: $325 million, up 0.7% year over year and 4.1% quarter over quarter. Adjusted EBITDA: $11 million, approximately 3.4% margin, up 130 basis points year over year. Net Active Clients: 2.4 million, down 10.6% year over year and 0.8% quarter over quarter. Revenue per Active Client: $542, up 3.2% year over year and 1% quarter over quarter. Gross Margin: 44.2%, down 130 basis points year over year. Advertising Expense: 10.2% of revenue, up 130 basis points year over year. Net Inventory: $114.4 million, flat year over year, up 4.4% quarter over quarter. Free Cash Flow: $16 million generated in Q3. Cash and Investments: $242 million, with no debt. Q4 Revenue Guidance: Between $298 million and $303 million. Q4 Adjusted EBITDA Guidance: Between $3 million and $7 million. FY25 Revenue Guidance: Between $1.254 billion and $1.259 billion. FY25 Adjusted EBITDA Guidance: Between $43 million and $47 million. Warning! GuruFocus has detected 4 Warning Signs with SFIX. Release Date: June 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Stitch Fix Inc (NASDAQ:SFIX) achieved a return to year-over-year revenue growth, with Q3 revenue reaching $325 million. The company reported a 10% increase in Average Order Value (AOV), marking the seventh consecutive quarter of AOV growth. Stitch Fix Inc (NASDAQ:SFIX) saw growth in both its women's business and overall fixed channel, as well as continued growth in its men's business and Freestyle channel. The company has successfully implemented a more flexible client experience, including larger fixes and themed fixes, which have contributed to increased client engagement. Stitch Fix Inc (NASDAQ:SFIX) has strengthened its assortment with on-trend styles and expanded into adjacent categories like footwear and accessories, driving higher fixed AOVs and Freestyle channel growth. Net active clients decreased by 10.6% year over year and 0.8% quarter over quarter, indicating challenges in maintaining client growth. Gross margin declined to 44.2%, down 130 basis points year over year, primarily due to lower product margins. Advertising expenses increased to 10.2% of revenue, up 130 basis points year over year, reflecting higher costs in client acquisition. The company anticipates potential cost increases in FY26 due to current tariff rates, which could impact financial results. Stitch Fix Inc (NASDAQ:SFIX) expects continued sequential declines in active clients for Q4, despite overall revenue growth. Q: What did you observe in terms of consumer behavior and product category acceptance in the recent quarter, and how does this impact your guidance for the fourth quarter? A: Matt Baer, CEO, noted that the return to year-over-year growth was driven by the resonance of Stitch Fix's core value proposition and disciplined execution of their transformation strategy. The introduction of greater flexibility in their fixed options, particularly larger fixes with up to eight items, has resonated with clients, driving engagement and business results. Additionally, the infusion of newness into their assortment and expansion into non-apparel categories have led to better keep rates and higher average unit retail (AUR). The company has also achieved two consecutive quarters of year-over-year growth in new clients, who are spending more and opting into recurring shipments at a higher rate. David Aufderhaar, CFO, added that gross margin was slightly down due to mix shifts, but contribution margin remained strong, providing flexibility in assortment strategy. Q: Could the current macroeconomic environment be a potential share gain opportunity for Stitch Fix, and how are you communicating your value proposition to consumers? A: Matt Baer, CEO, believes the challenging macroeconomic environment presents an opportunity for Stitch Fix to gain market share. The company's service can be tailored to individual client needs, allowing for adaptive pricing and product offerings. The strong relationships between clients and stylists give Stitch Fix an advantage over competitors. The company has adapted its messaging to emphasize the value it offers, such as saving time and adding convenience, which resonates with clients during challenging times. Baer also mentioned that they do not anticipate taking price increases in the near term, focusing instead on mitigating potential cost increases. Q: Can you provide insights into the sustainability of the average order value (AOV) increases, and what are the main drivers? A: David Aufderhaar, CFO, explained that the increase in AOV, up 10% in the quarter, is largely driven by the introduction of larger fixes, which have resonated with clients. The penetration of larger fixes has more than doubled from Q1 to Q3. The company sees continued momentum in gaining wallet share from existing clients, although they anticipate tougher comparisons in FY26 due to the strong performance this year. The focus remains on driving value through client engagement and maximizing wallet share. Q: Is it becoming more expensive to maintain your customer base, and what is needed to drive new customer growth? A: David Aufderhaar, CFO, stated that they do not need to increase ad spend to achieve active client growth. The company has seen positive trends in new client acquisition, client reengagement, and dormancy rates. They focus on quality over quantity in client acquisition, ensuring high lifetime value. While ad spend may fluctuate seasonally, the company remains confident in its ability to achieve client growth with current marketing investments. Q: What is your outlook on tariffs and their potential impact on Stitch Fix's business? A: Matt Baer, CEO, emphasized a proactive approach to mitigating tariff-related risks. The company is closely monitoring trade policy changes and is prepared to adjust its brand mix and leverage its private brand portfolio to minimize impacts. Baer expressed confidence in the company's ability to navigate potential cost increases and maintain its market position, supported by strong client relationships and advanced AI capabilities. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
2 hours ago
- Yahoo
Which Software Stocks Is BofA Securities Bullish On?
The BofA Securities software research team hosted 18 public and 10 private companies at the BofA Global Technology Conference in San Francisco on June 3-5. With an ever-changing macro policy backdrop, the spending environment was the focus of this discussion. AI product cycles were another key topic discussed, with companies citing healthy pilot activity for agentic applications. Based on discussions, participating software companies endorsed a generally stable environment, although companies remained cognizant of underlying the analyst report noted that while product cycles for agentic AI are still in their early stages, they are reportedly gaining traction through initial pilot deals. Analyst Brad Sills included key takeaways from meetings with participating companies in this report. Sills said Microsoft Corp.'s (NASDAQ:MSFT) (Buy, price forecast $515) Commercial CFO Mat McBride suggested sustained momentum in the Azure business, led by healthy cloud migration. According to the analyst, Microsoft is rapidly innovating across the enterprise stack. ServiceNow's (NYSE:NOW) (Buy, price forecast $1,085) Chief Customer Officer Chris Bedi highlighted solid execution through a tough macro environment in the tariff-impacted manufacturing vertical and DOGE-impacted Federal vertical. ServiceNow noted sustained momentum across the broad IT, customer, and employee application suites. It is expanding rapidly to multiple departments in the enterprise. In front office applications, Salesforce's (NYSE:CRM) (Buy, price forecast $350) COO and CFO, Robin Washington, reiterated pockets of weakness in tariff-impacted verticals like manufacturing and retail, though noting strength elsewhere, Sills said. According to the analyst, Salesforce is driving growth in both core and Agentforce. The analyst noted that Datadog's (NASDAQ:DDOG) (Buy, price forecast $138) CFO, David Obstler, highlighted the company's expanding product offering and its long-term growth potential for monitoring cloud workloads, which are increasing in volume and complexity due to AI. The analyst noted that Datadog's AI-native cohort is growing quickly, though volatility is inherent in the consumption model. Sills said Asana (NYSE:ASAN) (Buy, price forecast $21) noted slight incremental macro headwinds in April for its enterprise segment. According to the analyst, AI Studio could represent a powerful second-half 2026 catalyst for Asana. The analyst noted that software firms cited solid leading indicators for agentic application adoption, though these cycles remain nascent. He said data management vendors such as Microsoft noted added database activity as enterprises prepare for running agentic AI applications. DevSecOps software vendor JFrog (NASDAQ:FROG) (Buy, price forecast $48) discussed how AI-focused code is beginning to show up more this year, Sills said. The analyst pronounced JFrog's setup good heading into the second half of 2025. Application vendors Salesforce and ServiceNow cited healthy pilot activity for agentic applications, Agentforce, and Now Assist, the analyst noted. However, he said revenue targets are limited at this cycle stage. Microsoft cited hundreds of thousands of customers running Microsoft 365 Copilot, expanding deployments, Sills noted. He said that OneStream (NASDAQ:OS) (Buy, price forecast $33) highlighted its attractive AI value proposition and adoption trends in the back office with its SensibleAI Forecast offering. OneStream is an AI-powered back-office disruptor. The analyst said Asana and Freshworks (NASDAQ:FRSH) (Neutral, price forecast $18) noted healthy demand for AI Studio and Freddy AI. Freshworks' AI offerings are driving up the list across all growth levers. Read Next:Photo by Bumble Dee via Shutterstock Date Firm Action From To Feb 2022 Tigress Financial Maintains Buy Jan 2022 Citigroup Maintains Buy Jan 2022 Morgan Stanley Maintains Overweight View More Analyst Ratings for MSFT View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? MICROSOFT (MSFT): Free Stock Analysis Report SALESFORCE (CRM): Free Stock Analysis Report SERVICENOW (NOW): Free Stock Analysis Report FRESHWORKS (FRSH): Free Stock Analysis Report This article Which Software Stocks Is BofA Securities Bullish On? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
