Why Telefonica (TEF) is a Top Momentum Stock for the Long-Term
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
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 Momentum Style Score of B, and has a VGM Score of A. The stock is up 4.1% and up 2.6% over the past one-week and four-week period, respectively, and Telefonica has gained 11.7% in the last one-year period as well. Additionally, an average of 666,694.56 shares were traded over the last 20 trading sessions.
A company's earnings performance is important for momentum 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 boasts an average earnings surprise of 18.3%.
With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should 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).
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