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 Friday, August 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.

Altice USA Inc’s Value Grade

Value Grade:

Altice USA, Inc. is a broadband communications and video services provider in the United States, delivering broadband, video, mobile, proprietary content and advertising services to residential and business customers across 21 states through its Optimum brand. The Company has presences primarily in the New York metropolitan area and various markets in the south-central United States through a fiber-rich hybrid-fiber coaxial broadband network and a fiber-to-the-home network. The Company offers news programming and advertising services. It operates a4, an advanced advertising and data business, which provides audience-based, multiscreen advertising solutions to local, regional and national businesses and advertising clients. It offers hyper-local, national, international and business news through its News 12 and i24NEWS networks. It also offers managed services, including hosted private branch exchange, managed Wi-Fi and network security for small and medium-sized 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.

Altice USA Inc has a Value Score of 90, which is considered to be undervalued.

When you look at Altice USA Inc’s price-to-sales ratio at 0.09 compared to the industry median at 1.10, this company has a lower price relative to revenue compared to its peers. This could make Altice USA Inc’s stock more attractive for value investors.

Now, let’s assess Altice USA Inc’s EV/EBITDA ratio, also known as enterprise multiple. At 7.4, when compared to the industry median of 6.3, 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. Altice USA Inc’s shareholder yield is lower than its industry median ratio of 3.97%. 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.

Lastly, let’s take a look at Altice USA Inc’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Altice USA Inc’s price-to-free-cash-flow ratio is lower than its industry median ratio of 11.94. This could make Altice USA Inc more attractive because the lower P/FCF ratio indicates that Altice USA 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.

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 87, 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 1.79.

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.

KT Corp (ADR)’s Value Grade

Value Grade:

KT Corp is a Korea-based company that mainly provides telecommunication services. The Company operates its business through four segments. The Information and Communications Technologies segment is engaged in providing telecommunication services to individual, home, corporate customers and the convergence business. The Finance segment is engaged in providing financial services, such as credit card. The Satellite Broadcasting segment provides satellite television services. The Other segment includes security services, satellite service, information technology and network services, as well as global business services, which provide global network services to multinational or domestic corporate customers and telecommunications companies. The Company's principal services include mobile voice and data telecommunications services; fixed-line services; credit card processing and other financial services; as well as other services. The Company is engaged in the software platforms business.

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.

KT Corp (ADR) has a Value Score of 99, which is considered to be undervalued.

KT Corp (ADR)’s price-earnings ratio is 8.9 compared to the industry median at 16.3. This means that it has a lower price relative to its earnings compared to its peers. This makes KT Corp (ADR) more attractive for value investors.

KT Corp (ADR)’s price-to-book ratio is higher than its peers. This could make KT Corp (ADR) less attractive for value investors when compared to the industry median at 1.79.

You can read more about KT 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.

Liberty Global Ltd’s Value Grade

Value Grade:

Liberty Global Ltd. is an international fixed-mobile convergence (FMC) communications company. The Company is engaged in providing connectivity and entertainment services to its residential and business customers. It delivers next-generation products through advanced fiber and 5G networks and provides connections across Europe. The Company’s businesses operate under some of the consumer brands, including Sunrise in Switzerland, Telenet in Belgium, Virgin Media in Ireland, UPC in Slovakia, Virgin Media-O2 in the United Kingdom, and VodafoneZiggo in the Netherlands. The Company, through its global investment arm, Liberty Global Ventures, has a portfolio of more than 75 companies and funds across the content, technology, and infrastructure industries, including stakes in companies like ITV, Televisa Univision, Plume, AtlasEdge and the Formula E racing series. Its products and services include Wi-Fi and Internet services, video, mobile and telephony services.

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 92, 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 1.79.

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.

Orange SA (ADR)’s Value Grade

Value Grade:

Orange SA is a France-based multi-service telecommunications operator. The Company operates seven segments: France, Spain, Europe, Africa & Middle East, Enterprise, International Carriers & Shared Services, Orange Bank. France includes all fixed and mobile communication services to consumers and companies as well as services for carriers. Spain covers fixed line and mobile telephony and fiber. Europe (Poland, Belgium, Luxembourg, Romania, Slovakia, and Moldova) provides high-speed fixed and mobile broadband. Africa & Middle East primarily operates in the mobile markets but also provides telephony and fixed Internet services. Enterprise provides digital transformation support. International Carriers & Shared Services includes international carrier and the activities of OCS and Orange Studio in content, among others. Orange Bank provides mobile financial services. Orange SA is the parent company of the Orange group.

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.

Orange SA (ADR) has a Value Score of 93, which is considered to be undervalued.

Orange SA (ADR)’s price-earnings ratio is 13.3 compared to the industry median at 16.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Orange SA (ADR) more attractive for value investors.

Orange SA (ADR)’s price-to-book ratio is higher than its peers. This could make Orange SA (ADR) less attractive for value investors when compared to the industry median at 1.79.

You can read more about Orange 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.

PCCW Ltd (ADR)’s Value Grade

Value Grade:

PCCW Limited (PCCW) is an investment holding company. The Company's Pacific Century Premium Developments (PCPD) is focused on development projects in Indonesia, Japan and Thailand. The Company's segments include HKT Limited, Media Business, Solutions Business, PCPD and Other Businesses. It is engaged in the provision of telecommunications and related services, which include local telephony, local data and broadband, international telecommunications, mobile, and other telecommunications businesses, such as customer premises equipment sales; the provision of pay-television (pay-TV) services, Internet portal digital media entertainment platform in the Hong Kong Special Administrative Region and other parts of the world; investments in, and development of, systems integration, network engineering and technology-related businesses, and development and management of property and infrastructure projects, as well as property investments.

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.

PCCW Ltd (ADR) has a Value Score of 82, which is considered to be undervalued.

PCCW Ltd (ADR)’s price-to-book ratio is lower than its peers. This could make PCCW Ltd (ADR) more attractive for value investors when compared to the industry median at 1.79.

You can read more about PCCW 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.

Telecom Argentina SA (ADR)’s Value Grade

Value Grade:

Telecom Argentina S.A. provides fixed-line telecommunications services in Argentina, and also provides other telephone-related services, such as international long-distance service, data transmission, information technology solutions outsourcing and Internet services. The Company's segments include Fixed Telecommunications Services (Fixed Services), Personal Mobile Telecommunications Services (Personal Mobile Services) and Nucleo Mobile Telecommunications Services (Nucleo Mobile Services). The Company, through its subsidiaries, also provides mobile telecommunications services and international wholesale services. The Fixed services segment consists of basic telephone services, interconnection services, data transmission and Internet services, information and communication technology services, and other telephone services. The Company, through its subsidiaries, such as Telecom Personal S.A. and Nucleo S.A., provides mobile services in Argentina and Paraguay, respectively.

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.

Telecom Argentina SA (ADR) has a Value Score of 94, which is considered to be undervalued.

Telecom Argentina SA (ADR)’s price-earnings ratio is 5.3 compared to the industry median at 16.3. This means that it has a lower price relative to its earnings compared to its peers. This makes Telecom Argentina SA (ADR) more attractive for value investors.

Telecom Argentina SA (ADR)’s price-to-book ratio is higher than its peers. This could make Telecom Argentina SA (ADR) less attractive for value investors when compared to the industry median at 1.79.

You can read more about Telecom Argentina 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.

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.

• Altice USA Inc stock has a Value Grade of A.
• Hutchison Telecmmnctns HK Hld Ltd - ADR stock has a Value Grade of A.
• KT Corp (ADR) stock has a Value Grade of A.
• Liberty Global Ltd stock has a Value Grade of A.
• Orange SA (ADR) stock has a Value Grade of A.
• PCCW Ltd (ADR) stock has a Value Grade of A.
• Telecom Argentina SA (ADR) stock has a Value Grade of A.

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.

• 7 Undervalued Telecommunications Services - Integrated Stocks for Friday, August 30
• 3 Undervalued Telecommunications Services - Integrated Stocks for Thursday, August 29
• 3 Undervalued Telecommunications Services - Integrated Stocks for Wednesday, August 28
• 6 Undervalued Telecommunications Services - Integrated Stocks for Tuesday, August 27

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