Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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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6 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 6 undervalued stocks in the Telecommunications Services - Integrated industry for Tuesday, September 24, 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.

America Movil SAB de CV (ADR)’s Value Grade

Value Grade:

America Movil, S.A.B. de C.V. is a holding company. The Company provides telecommunications services. Its services include mobile and fixed-line voice services, wireless and fixed data services, Internet access and pay television, sales of equipment, accessories and computers, as well as other related services. Its segments are Mexico Wireless, Mexico Fixed, Brazil, Colombia, Southern Cone, Andean Region, Central America, the Caribbean, the United States and Europe. The Southern Cone segment includes Argentina, Chile, Paraguay and Uruguay. The Andean Region segment includes Ecuador and Peru. The Central America segment includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The Caribbean segment includes the Dominican Republic and Puerto Rico. The Europe segment includes Austria, Belarus, Bulgaria, Croatia, Macedonia, Serbia and Slovenia. It operates in all of its geographic segments under the Claro brand, except in Mexico, the United States and Europe.

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.

America Movil SAB de CV (ADR) has a Value Score of 68, which is considered to be undervalued.

When you look at America Movil SAB de CV (ADR)’s price-to-sales ratio at 1.18 compared to the industry median at 1.17, this company has a higher price relative to revenue compared to its peers. This could make America Movil SAB de CV (ADR)’s stock less attractive for value investors.

America Movil SAB de CV (ADR)’s price-earnings ratio is 29.88 compared to the industry median at 17.37. This means it has a higher share price relative to earnings compared to its peers. This could make America Movil SAB de CV (ADR) less attractive for value investors.

Now, let’s assess America Movil SAB de CV (ADR)’s EV/EBITDA ratio, also known as enterprise multiple. At 4.4, when compared to the industry median of 6.3, 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. America Movil SAB de CV (ADR)’s shareholder yield is higher than its industry median ratio of 3.30%. 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. America Movil SAB de CV (ADR)’s price-to-book ratio is higher than its industry median ratio of 1.79. This could make America Movil SAB de CV (ADR) less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at America Movil SAB de CV (ADR)’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. America Movil SAB de CV (ADR)’s price-to-free-cash-flow ratio is lower than its industry median ratio of 14.49. This could make America Movil SAB de CV (ADR) more attractive because the lower P/FCF ratio indicates that America Movil SAB de CV (ADR) 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.

ATN International Inc’s Value Grade

Value Grade:

ATN International, Inc. is a provider of digital infrastructure and communications services. The Company operates in the United States and internationally, including the Caribbean region. Its segments include International Telecom and US Telecom. The International Telecom segment provides mobility services, fixed services, carrier services, and managed services in Bermuda, the Cayman Islands, Guyana, and the US Virgin Islands. The US Telecom segment provides fixed services, carrier services, mobility services, and managed services in Alaska and parts of the western United States. Through its subsidiaries, it provides advanced wireless and wireline connectivity to residential, business, and government customers, including a range of high-speed Internet and data services, fixed and mobile wireless solutions, and video and voice services; and carrier and enterprise communications services, such as terrestrial and submarine fiber optic transport, and communications tower facilities.

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.

ATN International Inc has a Value Score of 95, which is considered to be undervalued.

ATN International Inc’s price-to-book ratio is higher than its peers. This could make ATN International Inc less attractive for value investors when compared to the industry median at 1.79.

You can read more about ATN International 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.

DZS Inc’s Value Grade

Value Grade:

DZS Inc. is a developer of network edge, connectivity and cloud software solutions enabling gigabit broadband everywhere. The Company is a global provider of access and optical networking infrastructure and artificial intelligence (AI) driven cloud software solutions that enable the emerging hyper-connected, hyper-broadband world and broadband experiences. It researches, develops, tests, sells, manufactures and supports platforms in the areas of mobile transport and fixed broadband access. Its solutions and platforms portfolio include products in Access Edge, Subscriber Edge, Optical Edge, and Cloud Software. Its services include professional services, architecture & design, project management & consulting, managed SaaS delivery and DZS academy. Access Edge includes network assurance, fiber access and optical network terminals. The Company's product portfolio also includes fiber extension, connected home, fixed wireless access (FWA) and industrial Internet of things (IioT) 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.

DZS Inc has a Value Score of 80, which is considered to be undervalued.

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

You can read more about DZS 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.

Hellenic Telecom Organization S.A. (ADR)’s Value Grade

Value Grade:

Hellenic Telecommunications Organization S.A. (OTE) is engaged in the provision of telecommunications and related services. The Company offers a range of telecommunications services, including fixed-line and mobile telephony, broadband services, pay television and information and communications technology (ICT) solutions. Its segments include OTE, COSMOTE group, TELEKOM ROMANIA and Other. In Greece, the Company is also involved in maritime communications, real-estate and professional training. The Company's OTE segment provides fixed-line services, Internet access services, ICT services and television services in Greece. The COSMOTE group segment offers mobile telecommunications services in Greece, Albania and Romania. The TELEKOM ROMANIA segment provides fixed-line services, Internet access services, ICT services and television services in Romania. The Other segment consists of other operations of the 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.

Hellenic Telecom Organization S.A. (ADR) has a Value Score of 63, which is considered to be undervalued.

Hellenic Telecom Organization S.A. (ADR)’s price-earnings ratio is 11.8 compared to the industry median at 17.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Hellenic Telecom Organization S.A. (ADR) more attractive for value investors.

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

You can read more about Hellenic Telecom Organization S.A. (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.

Surgepays Inc’s Value Grade

Value Grade:

SurgePays, Inc. is a technology and telecommunications company, which is focused on the underbanked and underserved communities. The Company provides mobile broadband to low-income consumers nationwide. Its segments include Mobile Virtual Network Operators, Comprehensive Platform Services and Lead Generation. Mobile Virtual Network Operators segment provides mobile broadband (internet connectivity), voice and SMS text messaging to both subsidized and direct retail prepaid customers through its subsidiaries, SurgePhone Wireless, LLC and Torch Wireless, LLC. Comprehensive Platform Services segment provides financial technology and a wireless top-up platform to independently owned convenience stores throughout the country via its subsidiaries, SurgePays Fintech, ECS Prepaid, LLC, Electronic Check Services, Inc. and Central States Legal Services, Inc. Lead Generation segment provides lead generation and case management solutions, primarily to the law firms in the mass tort industry.

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.

Surgepays Inc has a Value Score of 62, which is considered to be undervalued.

Surgepays Inc’s price-earnings ratio is 19.1 compared to the industry median at 17.4. This means that it has a higher price relative to its earnings compared to its peers. This makes Surgepays Inc less attractive for value investors.

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

You can read more about Surgepays 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.

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 65, which is considered to be undervalued.

Verizon Communications Inc.’s price-earnings ratio is 16.6 compared to the industry median at 17.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Verizon Communications Inc. more attractive for value investors.

Verizon Communications Inc.’s price-to-book ratio is lower than its peers. This could make Verizon Communications Inc. more attractive for value investors when compared to the industry median at 1.79.

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 6 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.

• America Movil SAB de CV (ADR) stock has a Value Grade of B.
• ATN International Inc stock has a Value Grade of A.
• DZS Inc stock has a Value Grade of B.
• Hellenic Telecom Organization S.A. (ADR) stock has a Value Grade of B.
• Surgepays Inc stock has a Value Grade of B.
• Verizon Communications Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Telecommunications Services - Integrated Stocks for Tuesday, September 24
• 6 Undervalued Telecommunications Services - Integrated Stocks for Monday, September 23
• 5 Undervalued Telecommunications Services - Integrated Stocks for Friday, September 20
• 3 Undervalued Telecommunications Services - Integrated Stocks for Thursday, September 19

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