Why This 1 Value Stock Could Be a Great Addition to Your Portfolio
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and 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 boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #2 (Buy) rating. Shares of Telefonica Brasil are trading at a forward earnings multiple of 15.7X, as well as a PEG Ratio of 0.9, a Price/Cash Flow ratio of 4.4X, and a Price/Sales ratio of 1.5X.
A company's earnings performance is important for value investors as well. For fiscal 2023, one analyst revised their earnings estimate higher in the last 60 days for VIV, while the Zacks Consensus Estimate has increased $0.04 to $0.55 per share. VIV also holds an average earnings surprise of 65%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding VIV to their portfolios.
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Telefonica Brasil S.A. (VIV) : Free Stock Analysis Report
