Why Telefonica Brasil (VIV) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
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
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight 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 is a Zacks Rank #2 (Buy) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 17.5X for the current fiscal year compared to the Diversified Communication Services industry's P/E of 16.3X. Additionally, VIV has a PEG Ratio of 1 and a Price/Cash Flow ratio of 5.3X. Value investors should also note VIV's Price/Sales ratio of 1.7X.
Many value investors pay close attention to a company's earnings as well. For VIV, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.04 to $0.59 per share for 2023. Per share VIV boasts an average earnings surprise of 30%.
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
