Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 stocks made the list for top value stocks in the Telecommunications Services - Integrated industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Telecommunications Services - Integrated Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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4 Undervalued Telecommunications Services - Integrated Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 4 undervalued stocks in the Telecommunications Services - Integrated industry for Tuesday, January 30, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Telecommunications Services - Integrated industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Consolidated Communications Holdings Inc’s Value Grade

Value Grade:

Consolidated Communications Holdings, Inc. is a holding company with operating subsidiaries that provide a range of communication solutions to consumer, commercial and carrier channels. The Company offers fiber network, which spans approximately 57,800 fiber route miles. It also offers residential high-speed Internet, video, phone, and home security services, as well as multi-service residential and small business bundles. Its business products include data and Internet solutions, voice, data center services, security services, managed and information technology (IT) services, and a suite of cloud services. The Commercial and Carrier services include data and transport services, voice services and others. The Consumer business includes broadband services, video services, voice services, subsidies, network access services, and other products and services. The broadband services include residential customers for subscriptions to its Voice over Internet Protocol (VoIP) and data products.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Consolidated Communications Holdings Inc has a Value Score of 64, which is considered to be undervalued.

When you look at Consolidated Communications Holdings Inc’s price-to-sales ratio at 0.44 compared to the industry median at 1.14, this company has a lower price relative to revenue compared to its peers. This could make Consolidated Communications Holdings Inc’s stock more attractive for value investors.

Now, let’s assess Consolidated Communications Holdings Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 10.6, when compared to the industry median of 7.3, the company may be considered overvalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Consolidated Communications Holdings Inc’s shareholder yield is lower than its industry median ratio of 3.11%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Consolidated Communications Holdings Inc’s price-to-book ratio is lower than its industry median ratio of 2.19. This could make Consolidated Communications Holdings Inc more attractive to investors looking for a new addition to their portfolio.

Liberty Global Ltd’s Value Grade

Value Grade:

Liberty Global Ltd. is a holding company. The Company, through its subsidiaries, is engaged in converged broadband, video and mobile communications and an active investor in infrastructure, content and technology ventures. It has investments in fiber-based and 5G networks. For business and public sector organizations, it provides a complete range of voice, advanced data, video, wireless and cloud-based services across its local broadband networks, as well as mobile and converged fixed-mobile services. It offers broadband and mobile networks under brands, such as Virgin Media-02 in the United Kingdom, VodafoneZiggo in the Netherlands, Telenet in Belgium, Sunrise in Switzerland, Virgin Media in Ireland and UPC in Slovakia. Its global investment arm, Liberty Global Ventures, has a portfolio of more than 75 companies and funds across content, technology and infrastructure, including strategic stakes in ITV, Televisa Univision, Plume, Lionsgate and the Formula E racing series.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Liberty Global Ltd has a Value Score of 89, which is considered to be undervalued.

Liberty Global Ltd’s price-to-book ratio is higher than its peers. This could make Liberty Global Ltd less attractive for value investors when compared to the industry median at 2.19.

You can read more about Liberty Global Ltd’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

PLDT Inc (ADR)’s Value Grade

Value Grade:

PLDT Inc. is a Philippines-based diversified telecommunication company. The Company operates through three business segments: Wireless, Fixed Line and Others. The Company, through its business segments, offers a range of telecommunications services across the Philippines' fiber optic backbone and wireless and fixed line networks. Its wireless segment provides mobile telecommunications services provided by Smart and DMPI; SBI and PDSI are its wireless broadband service provider; and mobile virtual network operations. Its fixed line segment provides telecommunications services. It also provides fixed line services through its subsidiaries, namely, ClarkTel, BCC and PLDT Global and certain subsidiaries, data center, cloud, cyber security services, managed information technology services and reseller ship, and distribution of Filipino channels. Its others segment includes PCEV, PGIH, PLDT Digital and its subsidiaries, and PGIC, an investment company.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

PLDT Inc (ADR) has a Value Score of 73, which is considered to be undervalued.

PLDT Inc (ADR)’s price-earnings ratio is 25.3 compared to the industry median at 18.2. This means that it has a higher price relative to its earnings compared to its peers. This makes PLDT Inc (ADR) less attractive for value investors.

PLDT Inc (ADR)’s price-to-book ratio is lower than its peers. This could make PLDT Inc (ADR) more attractive for value investors when compared to the industry median at 2.19.

You can read more about PLDT Inc (ADR)’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Spark New Zealand Ltd (ADR)’s Value Grade

Value Grade:

Spark New Zealand Limited is a New Zealand-based telecommunications and digital services company. The Company provides a range of telecommunications, information technology, media and other digital products and services, including mobile services; voice services; broadband services; Internet sports streaming services; cloud, security and service management services; entertainment; procurement and partner services and managed data, networks and services. Its segments include mobile; voice; broadband; cloud, security, and service management; procurement and partners; managed data, networks, and services; and other products. The Company's customers range from consumers and households to small businesses, not-for-profits, government, and large enterprise clients. The Company's subsidiaries include Computer Concepts Limited, Digital Island Limited, Qrious Limited, Revera Limited, Spark Finance Limited, Spark New Zealand Trading Limited, and Gen-i Australia Pty Limited, among others.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Spark New Zealand Ltd (ADR) has a Value Score of 61, which is considered to be undervalued.

Spark New Zealand Ltd (ADR)’s price-earnings ratio is 8.8 compared to the industry median at 18.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Spark New Zealand Ltd (ADR) more attractive for value investors.

Spark New Zealand Ltd (ADR)’s price-to-book ratio is lower than its peers. This could make Spark New Zealand Ltd (ADR) more attractive for value investors when compared to the industry median at 2.19.

You can read more about Spark New Zealand Ltd (ADR)’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Telecommunications Services - Integrated Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Telecommunications Services - Integrated stocks as well as other industrys.

Choosing Which of the 4 Best Telecommunications Services - Integrated Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Consolidated Communications Holdings Inc stock has a Value Grade of B.
• Liberty Global Ltd stock has a Value Grade of A.
• PLDT Inc (ADR) stock has a Value Grade of B.
• Spark New Zealand Ltd (ADR) stock has a Value Grade of B.

Now that you have a bit more background about each of the 4 undervalued stocks in the Telecommunications Services - Integrated industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Telecommunications Services - Integrated Stocks

Want to learn more about Telecommunications Services - Integrated stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 4 Undervalued Telecommunications Services - Integrated Stocks for Tuesday, January 30
• 4 Undervalued Telecommunications Services - Integrated Stocks for Monday, January 29
• 3 Undervalued Telecommunications Services - Integrated Stocks for Friday, January 26
• Which Is a Better Investment, America Movil SAB de CV (ADR) or Nippon Telegraph and Telephone Corp(ADR) Stock?

AAII Disclaimer

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