Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 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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7 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 7 undervalued stocks in the Telecommunications Services - Integrated industry for Wednesday, May 22, 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.

Cable One Inc’s Value Grade

Value Grade:

Cable One, Inc. is a broadband communications provider. The Company provides residential customers with an array of connectivity and entertainment services, including Gigabit speeds, advanced wireless fidelity (Wi-Fi), and video. It provides services that are similar to those provided by cable companies, telephone companies and fiber providers, among others. Its three primary product lines include residential data, residential video and business services. Its broadband plant generally consists of a fiber-to-the-premises or hybrid fiber-coaxial (HFC) network with ample unused capacity. It offers Sparklight TV, an Internet protocol-based (IPTV) video service that allows customers with its Sparklight TV app to stream its video channels from the cloud. Its customers are located in seven states: Arizona, Idaho, Mississippi, Missouri, Oklahoma, South Carolina and Texas. It provides services to more than 1.1 million residential and business customers out of approximately 2.8 million homes.

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.

Cable One Inc has a Value Score of 91, which is considered to be undervalued.

When you look at Cable One Inc’s price-to-sales ratio at 1.23 compared to the industry median at 1.13, this company has a higher price relative to revenue compared to its peers. This could make Cable One Inc’s stock less attractive for value investors.

Cable One Inc’s price-earnings ratio is 8.33 compared to the industry median at 14.84. This means it has a lower share price relative to earnings compared to its peers. This could make Cable One Inc more attractive for value investors.

Now, let’s assess Cable One Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 6.6, when compared to the industry median of 7.0, the company may be considered undervalued 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. Cable One Inc’s shareholder yield is higher than its industry median ratio of 3.54%. 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. Cable One Inc’s price-to-book ratio is lower than its industry median ratio of 1.77. This could make Cable One Inc more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Cable One Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Cable One Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 10.85. This could make Cable One Inc more attractive because the lower P/FCF ratio indicates that Cable One Inc is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

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 across a service area in over 20 states. It offers a fiber network, which spans over 61,000 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 product suite includes data and Internet solutions, voice, data center services, security services, managed and information technology services, and an expanded 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. Voice services include basic local phone and long-distance service packages for business customers.

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 62, which is considered to be undervalued.

Consolidated Communications Holdings Inc’s price-to-book ratio is higher than its peers. This could make Consolidated Communications Holdings Inc less attractive for value investors when compared to the industry median at 1.77.

You can read more about Consolidated Communications Holdings Inc’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.

Hutchison Telecmmnctns HK Hld Ltd - ADR’s Value Grade

Value Grade:

Hutchison Telecommunications Hong Kong Holdings Ltd is an investment holding company principally engaged in the provision of telecommunications services in Hong Kong and Macau. It provides 5G, 4G long-term evolution (4G LTE), 3G and global system for mobile communications (GSM) dual-band mobile telecommunications services under the '3' brand.

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.

Hutchison Telecmmnctns HK Hld Ltd - ADR has a Value Score of 97, which is considered to be undervalued.

Hutchison Telecmmnctns HK Hld Ltd - ADR’s price-to-book ratio is higher than its peers. This could make Hutchison Telecmmnctns HK Hld Ltd - ADR less attractive for value investors when compared to the industry median at 1.77.

You can read more about Hutchison Telecmmnctns HK Hld 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.

Magyar Telekom Tavkozlesi Nyrt (ADR)’s Value Grade

Value Grade:

Magyar Telekom Tavkozlesi Nyrt is engaged in providing fixed line and mobile telecommunication services for public and business customers. The Company's segments include Telekom Hungary, T-Systems, Macedonia and Montenegro. Its Telekom Hungary segment operates in Hungary providing mobile and fixed line telecommunications and television distribution and energy retail services to residential and small businesses customers under the Telekom (T) brand, and also provides wholesale services to local companies and operators. Its T-Systems segment operates in Hungary providing mobile and fixed line telecommunications, info communications and system integration services, which are offered under the T-Systems brand to business partners, including corporate customers and public sector. Its Macedonia and Montenegro segments provide mobile and fixed line telecommunications operations in Macedonia and Montenegro.

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.

Magyar Telekom Tavkozlesi Nyrt (ADR) has a Value Score of 92, which is considered to be undervalued.

Magyar Telekom Tavkozlesi Nyrt (ADR)’s price-earnings ratio is 8.9 compared to the industry median at 14.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Magyar Telekom Tavkozlesi Nyrt (ADR) more attractive for value investors.

Magyar Telekom Tavkozlesi Nyrt (ADR)’s price-to-book ratio is higher than its peers. This could make Magyar Telekom Tavkozlesi Nyrt (ADR) less attractive for value investors when compared to the industry median at 1.77.

You can read more about Magyar Telekom Tavkozlesi Nyrt (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.

Nippon Telegraph and Telephone Corp(ADR)’s Value Grade

Value Grade:

Nippon Telegraph And Telephone Corp is a provider of fixed and mobile voice related services, regional communications services, long distance and international communications business, data communications business and other business. The Company operates in five segments. Mobile Communications segment conducts mobile voice related services and sale of telecommunications equipment. Regional Communications segment provides fixed voice related services and other services. Long Distance and International Communications segment comprises fixed voice related services and international communications services, solution and other services. Data Communications segment comprises system integration services and network system service. Other segment comprises real estate rentals, financial business, systems development and other services related to research and development.

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.

Nippon Telegraph and Telephone Corp(ADR) has a Value Score of 87, which is considered to be undervalued.

Nippon Telegraph and Telephone Corp(ADR)’s price-earnings ratio is 10.1 compared to the industry median at 14.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Nippon Telegraph and Telephone Corp(ADR) more attractive for value investors.

Nippon Telegraph and Telephone Corp(ADR)’s price-to-book ratio is higher than its peers. This could make Nippon Telegraph and Telephone Corp(ADR) less attractive for value investors when compared to the industry median at 1.77.

You can read more about Nippon Telegraph and Telephone Corp(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.

Telefonica Brasil SA (ADR)’s Value Grade

Value Grade:

Telefonica Brasil S.A. is a mobile telecommunications company in Brazil offering postpaid mobile services. The Company also operates as a fixed telecommunications company in the state of Sao Paulo. The Company markets its mobile services under its Vivo brand. It offers its clients a portfolio of products, including mobile and fixed voice, mobile data, fixed broadband, ultra-fast broadband, Pay television, information technology and digital services. Its operations consist of local and long distance fixed telephone services; mobile services, including value-added services; data services, including broadband services and mobile data services; Pay television services through direct to home (DTH), Internet protocol television (IPTV) and cable; network services, such as rental of facilities, as well as other services; wholesale services, including interconnection; digital services; services designed specifically for corporate customers, and the sale of wireless devices and accessories.

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.

Telefonica Brasil SA (ADR) has a Value Score of 85, which is considered to be undervalued.

Telefonica Brasil SA (ADR)’s price-earnings ratio is 14.7 compared to the industry median at 14.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Telefonica Brasil SA (ADR) more attractive for value investors.

Telefonica Brasil SA (ADR)’s price-to-book ratio is higher than its peers. This could make Telefonica Brasil SA (ADR) less attractive for value investors when compared to the industry median at 1.77.

You can read more about Telefonica Brasil SA (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.

Verizon Communications Inc.’s Value Grade

Value Grade:

Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, information and entertainment products and services to consumers, businesses and governmental agencies. Its reportable segments are Verizon Consumer Group and Verizon Business Group. Its Consumer segment provides wireless and wireline communications services. Its wireless services are provided across wireless networks in the United States (U.S.) under the Verizon brands. Its wireline services are provided in nine states in the Mid-Atlantic and Northeastern U.S., as well as Washington D.C., over its fiber-optic network under the Fios brand and over a traditional copper-based network. Its Business segment provides wireless and wireline communications services and products, including data, video and conferencing services, security and managed network services, local and long-distance voice services and network access to deliver various Internet of Things services and 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.

Verizon Communications Inc. has a Value Score of 69, which is considered to be undervalued.

Verizon Communications Inc.’s price-earnings ratio is 14.8 compared to the industry median at 14.8. This means that it has a higher price relative to its earnings compared to its peers. This makes Verizon Communications Inc. fairly attractive for value investors.

Verizon Communications Inc.’s price-to-book ratio is lower than its peers. This could make Verizon Communications Inc. fairly attractive for value investors when compared to the industry median at 1.77.

You can read more about Verizon Communications Inc.’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 7 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.

• Cable One Inc stock has a Value Grade of A.
• Consolidated Communications Holdings Inc stock has a Value Grade of B.
• Hutchison Telecmmnctns HK Hld Ltd - ADR stock has a Value Grade of A.
• Magyar Telekom Tavkozlesi Nyrt (ADR) stock has a Value Grade of A.
• Nippon Telegraph and Telephone Corp(ADR) stock has a Value Grade of A.
• Telefonica Brasil SA (ADR) stock has a Value Grade of A.
• Verizon Communications Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 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.

• 5 Undervalued Telecommunications Services - Integrated Stocks for Wednesday, May 22
• 7 Undervalued Telecommunications Services - Integrated Stocks for Tuesday, May 21
• 3 Undervalued Telecommunications Services - Integrated Stocks for Monday, May 20
• 4 Undervalued Telecommunications Services - Integrated Stocks for Friday, May 17

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