Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
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.
Why Investors Should Pay Attention to This Value Stock
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.
Telefonica Brasil (VIV)
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 is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 16.3X for the current fiscal year compared to the Diversified Communication Services industry's P/E of 16.2X. Additionally, VIV has a PEG Ratio of 1 and a Price/Cash Flow ratio of 4.6X. Value investors should also note VIV's Price/Sales ratio of 1.5X.
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 2023. The Zacks Consensus Estimate has increased $0.04 to $0.55 per share. VIV has an average earnings surprise of 65%.
Investors should take the time to consider VIV for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Telefonica Brasil S.A. (VIV) : Free Stock Analysis Report
