Latest news with #Telecom
Yahoo
3 days ago
- Business
- Yahoo
The Returns On Capital At Verizon Communications (NYSE:VZ) Don't Inspire Confidence
If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. However, after briefly looking over the numbers, we don't think Verizon Communications (NYSE:VZ) has the makings of a multi-bagger going forward, but let's have a look at why that may be. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. Analysts use this formula to calculate it for Verizon Communications: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.098 = US$31b ÷ (US$380b - US$61b) (Based on the trailing twelve months to March 2025). Thus, Verizon Communications has an ROCE of 9.8%. On its own, that's a low figure but it's around the 8.6% average generated by the Telecom industry. View our latest analysis for Verizon Communications Above you can see how the current ROCE for Verizon Communications compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for Verizon Communications . The trend of ROCE doesn't look fantastic because it's fallen from 12% five years ago, while the business's capital employed increased by 26%. Usually this isn't ideal, but given Verizon Communications conducted a capital raising before their most recent earnings announcement, that would've likely contributed, at least partially, to the increased capital employed figure. The funds raised likely haven't been put to work yet so it's worth watching what happens in the future with Verizon Communications' earnings and if they change as a result from the capital raise. Also, we found that by looking at the company's latest EBIT, the figure is within 10% of the previous year's EBIT so you can basically assign the ROCE drop primarily to that capital raise. In summary, Verizon Communications is reinvesting funds back into the business for growth but unfortunately it looks like sales haven't increased much just yet. Unsurprisingly, the stock has only gained 1.6% over the last five years, which potentially indicates that investors are accounting for this going forward. So if you're looking for a multi-bagger, the underlying trends indicate you may have better chances elsewhere. If you want to continue researching Verizon Communications, you might be interested to know about the 2 warning signs that our analysis has discovered. While Verizon Communications isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
The Market Online
4 days ago
- Business
- The Market Online
@ the Bell: TSX steps back from its peak
Canada's main stock index saw little movement on Thursday, despite optimism among investors following a US federal court decision to block President Donald Trump's April 2 tariff measures. Telecom shares led gains for the TSX. Meanwhile, the S&P 500 edged higher, supported by a strong post-earnings rally in Nvidia (NASDAQ:NVDA) shares. However, broader market gains were limited as investors weighed the implications of the court's rejection of Trump's 'reciprocal' tariffs. Although Wednesday's trading session was subdued, major US indexes are still on pace to end both the week and the month with gains. The Canadian dollar traded for 72.42 cents US compared to 72.28 cents US on Wednesday. US crude futures traded $0.86 lower at US$60.98 a barrel, and the Brent contract lost $0.73 to US$64.17 a barrel. The price of gold was up US$18.07 to US$3,316.29. In world markets, the Nikkei was up 710.58 points to ¥38,432.98, the Hang Seng was up 315.07 points to HK$23,573.38 the FTSE was down 9.56 points to ₤8,716.45, and the DAX was down 104.96 points to €23,933.23. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
Yahoo
4 days ago
- Automotive
- Yahoo
Barclays Analyst Highlights Continued Telecom Strength for Fabrinet (NYSE:FN)
Barclays analyst George Wang recently lowered the price target on Fabrinet (NYSE:FN) to $234 from $245 and kept an Equal Weight rating on the shares. Fabrinet offers optical packaging, along with precision optical, electro-mechanical, and electronic manufacturing services. In an investor note, the analyst noted that the company reported solid fiscal Q3 results, though they were overshadowed by softer Datacom despite continued Telecom strength. The advisory sensed that the 1.6T cycle timing was slightly shifted to the right or at a minimum came with great uncertainty when the cycle started. An automated assembly line displaying the advanced packaging technology used by the company. While disclosing earnings for the third fiscal quarter, the firm provided guidance for the fourth fiscal quarter, with revenue expected between $860 million and $900 million and non-GAAP earnings per share of $2.55 to $2.70. CEO Grady expressed optimism about continued growth in Telecom and Automotive segments, while highlighting potential moderation in Automotive growth due to prior outsized performance. While we acknowledge the potential of FN, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FN and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires Disclosure: None.
Yahoo
7 days ago
- Business
- Yahoo
Is SPDR NYSE Technology ETF (XNTK) a Strong ETF Right Now?
Making its debut on 09/25/2000, smart beta exchange traded fund SPDR NYSE Technology ETF (XNTK) provides investors broad exposure to the Technology ETFs category of the market. The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment. Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency. There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies. Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics. This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results. Because the fund has amassed over $1.01 billion, this makes it one of the larger ETFs in the Technology ETFs. XNTK is managed by State Street Global Advisors. This particular fund seeks to match the performance of the NYSE Technology Index before fees and expenses. The NYSE Technology Index is composed of 35 leading U.S.-listed technology-related companies. When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal. With one of the least expensive products in the space, this ETF has annual operating expenses of 0.35%. It's 12-month trailing dividend yield comes in at 0.36%. It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis. For XNTK, it has heaviest allocation in the Information Technology sector --about 69.50% of the portfolio --while Consumer Discretionary and Telecom round out the top three. When you look at individual holdings, Palantir Technologies Inc A (PLTR) accounts for about 4.35% of the fund's total assets, followed by Alibaba Group Holding Sp Adr (BABA) and Uber Technologies Inc (UBER). The top 10 holdings account for about 34.94% of total assets under management. The ETF has gained about 6.19% and is up roughly 14.92% so far this year and in the past one year (as of 05/27/2025), respectively. XNTK has traded between $164.46 and $228.87 during this last 52-week period. The fund has a beta of 1.32 and standard deviation of 27.86% for the trailing three-year period. With about 36 holdings, it has more concentrated exposure than peers. SPDR NYSE Technology ETF is an excellent option for investors seeking to outperform the Technology ETFs segment of the market. There are other ETFs in the space which investors could consider as well. Technology Select Sector SPDR ETF (XLK) tracks Technology Select Sector Index and the Vanguard Information Technology ETF (VGT) tracks MSCI US Investable Market Information Technology 25/50 Index. Technology Select Sector SPDR ETF has $70.58 billion in assets, Vanguard Information Technology ETF has $83.93 billion. XLK has an expense ratio of 0.08% and VGT charges 0.09%. Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Technology ETFs. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR NYSE Technology ETF (XNTK): ETF Research Reports Technology Select Sector SPDR ETF (XLK): ETF Research Reports Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report Vanguard Information Technology ETF (VGT): ETF Research Reports Uber Technologies, Inc. (UBER) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
26-05-2025
- Business
- Yahoo
Here's Why Telefonica Brasil (VIV) is a Strong Value Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum. 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. Based in Sao Paulo, Brazil, Telefonica Brasil S.A. is the Brazilian subsidiary of Spanish telecom giant Telefonica SA. With the acquisition of Vivo, Telefonica Brasil became the largest telecom operator in Brazil in terms of revenues. VIV boasts a Value Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Telefonica Brasil are trading at a forward earnings multiple of 15.1X, as well as a PEG Ratio of 1, a Price/Cash Flow ratio of 4.4X, and a Price/Sales ratio of 1.6X. Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.02 to $0.65 per share. VIV has an average earnings surprise of 1.6%. VIV should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Telefonica Brasil S.A. (VIV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
