9.75 0.00 (0.00%)
After hours: 4:17PM EDT
|Bid||9.73 x 1300|
|Ask||9.82 x 2200|
|Day's Range||9.74 - 10.05|
|52 Week Range||9.05 - 13.66|
|Beta (3Y Monthly)||0.97|
|PE Ratio (TTM)||30.47|
|Forward Dividend & Yield||0.20 (2.04%)|
|1y Target Est||N/A|
Nokia (NYSE:NOK) stock saw a brief pop last month thanks to an earnings beat … but can that move in NOK stock last much longer?Source: Shutterstock The release of second-quarter financials on July 25 boosted shares from $5.18 per share up to $5.60 per share. However, since then, Nokia stock has fallen back to about $5.40 share.Increased demand for 5G technology helped improve sales 7% year-over-year. But the company continues to post net losses due to restructuring and impairment charges. With a turnaround still in progress, is NOK worth a buy today?InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhile the company has positive catalysts in the works, Nokia has missed the mark many times in the past. Let's take a closer look, and see if there is additional upside for Nokia stock. NOK Earnings: A Deeper LookThe company's financials are clouded by goodwill impairment and amortization charges. This is primarily related to the company's 2016 merger with Alcatel-Lucent. There are also restructuring charges related to their cost savings plan. With this in mind, let's take a look at the company's adjusted earnings. Adjusted (non-IFRS) operating profits exclude these charges. This provides a clearer picture of Nokia's operating performance. Non-IFRS operating profits were up 35% year-over-year. Adjusted earnings-per-share (EPS) of 0.05 euros were up 67% from the prior year's quarter. * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% With annual cost savings of $700 million euros anticipated by 2020, the company has runway to improve operating margins. In terms of organic growth, the 5G revolution provides plenty of gas to grow revenues. Nokia's full-year outlook projects adjusted EPS of 0.25-0.29 euros. The company anticipates additional earnings growth in 2020, with projected adjusted EPS of 0.37-0.42 euros/share for next year.As InvestorPlace contributor James Brumley pointed out last month, Nokia has been landing 5G contracts left and right. NOK has signed over 42 end users, including China Mobile (NYSE:CHL), China Unicom (NYSE:CHU) and Sprint (NYSE:S). But the company still needs to execute. This presents a material risk for NOK stock. The company has set up high expectations. If they fail to deliver, new opportunities could dry up, sending NOK shares lower.There are additional risks to consider. As 5G reaches critical mass, competition will likely heat up. The U.S.-China trade war could accelerate, negatively impacting Nokia's business in both countries. But what does this mean for investors entering Nokia stock today? Can they enter the stock at a discount, or will they have to pay a premium? Let's take a look at the valuation of NOK stock, and see how it stacks up to peers. Nokia's ValuationNOK stock currently trades at a trailing twelve month Enterprise Value/EBITDA (EV/EBITDA) ratio of 10.1. This is a slight discount to competitors such as Cisco (NASDAQ:CSCO), which trades at an EV/EBITDA ratio of 13.8. Nokia stock also trades at a discount other telecom equipment manufacturers. LM Ericsson (NASDAQ:ERIC), for example, trades at an EV/EBITDA ratio of 11.6; Motorola Solutions (NYSE:MSI) trades at an EV/EBITDA ratio of 16.7.It is important to note that NOK has lower EBITDA margins. The company's EBITDA margins are 11.4%, which pales in comparison to both Cisco and Motorola Solutions. Cisco has EBITDA margins of 30.8%. Motorola Solutions has EBITDA margins of 26.2%. However, the company's operating margins are in line with LM Ericsson, which has an EBITDA margin of 9.8%.But is this discount warranted?Nokia has dropped the ball many times in the past. This under-performance has burned contrarian investors trying to call a bottom. Is the 5G revolution Nokia's "this time it's different" moment? The company faces many risks in executing the 5G rollout. But much of this negative sentiment is priced into shares, as seen by the discount to peers. This means investors could see tremendous upside if the company's 5G sales meet expectations.Nokia stock presents a high risk/high return opportunity for investors. But does this make the stock a screaming buy? While the company's future prospects are not set in stone, the positive catalysts in play make this opportunity a strong buy for long-term investors. * 7 Stocks the Insiders Are Buying on Sale Bottom Line on NOK StockNokia releases third-quarter earnings in late October. This gives investors several months to enter a position in NOK stock before additional information makes the bull case (or bear case) for shares. NOK trades at a discount to peers. If they can execute 5G successfully, the company's fortunes could materially improve. This would be a shot in the arm for Nokia stock.As it stands now, what's the play with NOK?In the short-term, investors may be not see upside. Shares will likely trade sideways, pending new developments on the 5G front. However, long-term, Nokia may be the right contrarian play in the telecom space. For investors looking for speculative opportunities in large-cap stocks, Nokia stock may just be a buy.As of this writing, Thomas Neil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Internet Stocks Getting Hammered * 6 Big Growth ETFs to Buy For the Second Half of 2019 * 5 Cheap Stocks to Buy Now That the Fed Cut Rates The post Will the 5G Revolution Bring Upside to Nokia Stock? appeared first on InvestorPlace.
Ever since Apple (NASDAQ:AAPL) launched its now-iconic iPhone, Nokia (NYSE:NOK) has been in crisis mode. Of course, what has consistently dragged on the company is that it has never really left that mode. Nokia stock peaked around the $40 level in 2007. Today, you can pick up shares for a little over $5. Source: Shutterstock Of course, with such a low price point, this attracts contrarian buyers. After all, we're talking about Nokia stock, not some nameless, faceless upstart tooling around in the pink sheets. True, the Nokia brand isn't anywhere near as relevant as it once was. However, the Finnish telecom firm very much has clout.This is evident through the company's many wheeling and dealings. Recently, NOK announced that China Unicom (NYSE:CHU) selected Nokia's solution for the Chinese telecom's 4G and 5G networks . Significantly, China Unicom has a very ambitious target to deliver 5G wireless connectivity within this year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip Plus, Nokia stock benefits from geopolitical tailwinds. Earlier this year, I wrote that our own telecom giant AT&T (NYSE:T) has "critical value beyond the print."Primarily, what underlines the U.S.-China trade war is the two sides' rush to dominate next-generation technologies. Thus, companies like AT&T represent more than just capitalistic concerns; rather, they facilitate the pathway for these technologies to advance American interests.Second, the trade war has temporarily erased Huawei - the largest supplier of mobile network technology - from the picture. That gives an obvious opportunity for NOK, and by logical deduction, Nokia stock.And as our own James Brumley pointed out, Nokia has struck with multiple awarded contracts. But is that enough for NOK stock? NOK Stock and the FundamentalsAdmittedly, when I saw Brumley's contribution towards Nokia stock, I only read the headlines. But it was enough of a catchy one that I decided to look at the price chart before reading what my colleague had to say.Again, at $5, NOK stock is a very tempting mistress. Not only is it still a relatively well-known brand, but it's also levered to an extremely viable business. Everyone that's anyone is racing for 5G dominance. Moreover, 5G has serious geopolitical and even military implications.Such an environment suggests that the next-gen telecom network will provide robust revenue channels. That's especially true for Nokia if it can claim first-to-market advantages in specific regions or technical subsegments.And to Brumley's argument, Nokia is securing contracts with big names, such as China Mobile (NYSE:CHL), Sprint (NYSE:S), T-Mobile (NASDAQ:TMUS) and BT Group (NYSE:BT). Obviously, these are big tailwinds for NOK stock.But what isn't so appealing is trading sentiment. Specifically, Nokia has no discernible correlation with revenue trends. For instance, from the first quarter of 2013 through Q1 2019, Nokia shares and revenue had a correlation coefficient of -20%. Between Q1 2016 through Q1 2019, the correlation inversely strengthened to 34%. However, this is still not a statistically significant relationship. Click to EnlargeWhy does this matter? Because you really want your core investments to make rational sense. In other words, if Nokia's management says they're on a recovery path, I don't expect NOK stock to jump just on that alone. However, if Nokia proved its point through sales increases, I expect shares to steadily tick higher.Longer-term, that hasn't happened. For example, in Q4 2015, Nokia rang up only $3.95 billion in sales. Three years later, the company delivered revenue of $7.84 billion. Still, shares dropped on average from $6.31 to $5.57. Nokia Stock Is an Interpretive ArtworkIn my last article about NOK stock, I suggested that it was nothing more than a short-term trade. Largely, I feel the same way because of the lack of rationality in the market.However, I concede that this lack of rationality also presents an opportunity. To quote Brumley, Nokia "has gotten little to no credit for its newly-won contracts, as investors struggle to get past the company's disappointing first-quarter results."Perhaps the reason why Nokia stock has little correlation with the fundamentals is that most folks simply don't recognize the opportunity. Therefore, if you take the risk now, you potentially have a front-row seat to a massive recovery.But it could also mean that the markets have reason to doubt Nokia. Brumley even conceded that Q2 2019 numbers may not look great.And let's remind ourselves why Q1 figures were so disappointing: Nokia failed to supply 5G telecom equipment in time. Stated differently, if you buy Nokia stock, you're doing so on technical potential, not on proven fundamentals.As of this writing, Josh Enomoto is long T stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Tempting as It May Be, Nokia Stock Isn't Going Anywhere appeared first on InvestorPlace.
(Bloomberg) -- The city of Suzhou, known as “the Venice of the East” for its web of intricate waterways, captured the imagination of Marco Polo when he journeyed through China more than seven centuries ago.Today it’s drawing attention for another grand project: a sprawling network of databases designed to track the behavior of China’s population. Sitting next to Shanghai with an economy larger than Finland’s, Suzhou was one of a dozen places chosen in 2018 by President Xi Jinping’s government to run a social-credit trial, which can reward or punish citizens for their behavior.The system, dubbed “Osmanthus” after the fragrant flower the city uses as an emblem, collects data on nearly two dozen metrics, including marital status, education level and social-security payments. Authorities have given it national awards even as Western politicians like U.S. Vice President Mike Pence lambaste social credit as ushering in an Orwellian dystopia that could serve as a model for authoritarian regimes around the globe. But dozens of interviews with the people most affected by the system paint a nuanced picture of the technology in its early stages. Few of the entrepreneurs, volunteers, public servants and other Suzhou residents surveyed said they had even heard of Osmanthus, which is supposed to help shape laws, regulations and standards across China by 2020.China’s Radical Plan to Judge Each Citizen’s Behavior: QuickTakeSuzhou’s experience raises questions about the dozens of similar scoring projects that local cities are now rolling out. If residents are unaware of a system designed to change their behavior for the better, then what’s the point of having it? And if it’s struggling to take off in a city lauded by authorities, what are the chances it can be implemented effectively across the nation anytime soon?“China has an interest in overstating its capacity to collect and analyze data, like they overstate their capacity to monitor with surveillance cameras and facial recognition,” said Jeremy Daum, a senior fellow at the Paul Tsai China Center at Yale Law School. “They want people to believe that misconduct will get caught.”A three-story brown and white building near the city center is the public face of Suzhou’s social-credit system. Here individuals can ask questions about their scores.On a recent Monday afternoon, the building was largely empty. Two staff shuffled papers and typed at computers, while six seats reserved for visitors were vacant. One woman who entered was lost and asked for directions. The lone self-service machine, emblazoned with logos for Osmanthus and state-owned telecoms company China Unicom, was unplugged.A female official in jeans and a t-shirt, who only gave her family name Xi, said about 10 people come in each day. Most are small-business owners who want to verify that they’ve been removed from a financial credit blacklist after paying off a debt. She said she’s hardly ever seen anyone come in to check their social-credit score.Proponents of the system says it hews closely to the financial scores pioneered by William Fair and Earl Isaac in the U.S. in the mid-1950s. Today, FICO scores form the basis of the vast majority of loans made to individuals in the U.S. — with occasional debates over how they’re formulated and whether consumers have enough access to them.“People could end up living in fear, worrying that they are being watched all the time.”But China’s social-credit scores arguably go a step further by using the country’s vast surveillance network — public CCTV cameras, payment systems and more — to monitor citizens. While good behavior — such as volunteering, paying bills on time or avoiding fines for littering — is supposed to be rewarded with financial perks, bad behavior can abruptly leave residents without access to financing and public services.Osmanthus collects data on individuals from around 20 government departments, including social security and civil affairs, according to the local administration. Citizens start out with a neutral 100 points and can build them up to a maximum of 200 through good behavior. Like many other provinces trialing the system, Suzhou hasn’t yet introduced rules to define bad behavior, or the number of points that can be deducted.But perks for good behavior also are unclear. Lu Wenting, a Suzhou resident who says she does about 24 hours of volunteer work each week, said that she had never heard of Osmanthus, even though it’s supposed to grant public transport benefits to those with high scores. She found out her own score was a healthy “123” after Bloomberg reporters helped her look it up on the WeChat app run by Tencent Holdings Ltd.About one in eight of the 13 million people monitored in Suzhou had a score above 100 as of last August, according to local media reports. Only 4,731 were below 100, and all were so-called defaulters who hadn’t paid back loans or had failed to obey court rulings. That leaves more than 11 million people with scores at the baseline.Still, the idea of punishment is already sparking worries. A citizen in Yiwu, a city in neighboring Zhejiang province that is also running a trial, said he was denied a bank loan because a traffic cop deducted three points from his score for failing to give way to pedestrians crossing a street. Residents with a score of at least 100 points qualify for “civilization loans” with favorable interest rates.“People from lower levels of society could break rules without knowing and find their scores lowered and get shut out of more and more opportunities,” said Chen Shicai, a resident in Suzhou, expressing worries that social credit could worsen inequality in a country that already grapples with huge wealth divisions.One problem is how to integrate social credit into existing legal systems to ensure there are checks and balances to prevent abuse. China’s use of technology and informants among the Uighur minority groups in the far western province of Xinjiang suggest that the programs could become more oppressive as they develop.“I worry that regulations may become too specific, such as parking in the wrong spot,” said Su Su, an insurance saleswoman in Suzhou. “People could end up living in fear, worrying that they are being watched all the time.” Five provinces or municipalities — Shanghai, Zhejiang, Hebei, Hubei and Shaanxi — have established local credit regulations, but there are no national rules. Zhejiang and Shanghai placed clear restrictions on data collection that exclude personal information on religious beliefs, genetics, fingerprints, blood types and medical history.“While most of the trials are leaning towards encouraging people with convenience and perks, local authorities need to exercise caution when it comes to punishment," said Han Jiaping, director of the Credit Research Institute affiliated with the Ministry of Commerce. “Government at all levels shouldn’t over-punish and infringe people’s privacy and legitimate rights.”Another wrinkle is that many residents see more value in competing systems. At the 105-year-old Suzhou Library, citizens with high Osmanthus scores are supposed to be able to get longer book loan periods. But library staff said most people checked out books using their Zhima Credit number, a private credit score from Alibaba Group’s Ant Financial. Few people even ask about their Osmanthus score.“It’s more like a vanity project,” said Diao Yun, a Suzhou resident who works for a private company. “There’s no promotion of the system in the city — no billboards, no ads or public campaign as far as I see. It’s distant from people’s daily lives.”Cities and officials looking to build and implement a social-credit system face a bewildering array of official guidelines and documents from the State Council and other central and regional government bodies. Those rules relate to everything from assessing creditworthiness to punishing cultural performances on the internet that have a “heinous” social impact.In Suzhou, the main roadblock to promoting the system is inter-department squabbling over data sharing and who will pay for perks, according to a report in the state-owned Suzhou Daily. The paper said only 30 of the 70 departments are sending data directly to the platform, with others worried about transferring information without a legal requirement.“People could end up living in fear, worrying that they are being watched all the time.”Those teething problems mean that many residents in Suzhou are unaware of the system. None of the staff questioned in the subway, parks and museum knew anything about the scoring system or alleged perks, such as priority non-emergency service at hospitals.Another problem is at the national level. Xi and his team are engaged in an escalating trade war with the Trump administration that threatens to further hurt growth as companies get caught in the line of fire.It’s not a priority among China’s top leaders to push through a nationwide social-credit scoring system now even if Suzhou and other localities can set up workable models, said Zhang Jian, an associate government professor at Peking University.“President Xi and his government have been caught up ‘fire fighting’ internal and external pressures since last year,” Zhang said. “I doubt the party leaders are willing to expend the time, energy and political capital to roll out the plan.” To contact Bloomberg News staff for this story: Dandan Li in Beijing at firstname.lastname@example.orgSharon Chen in Singapore at email@example.comTo contact the editor responsible for this story: Jodi Schneider at firstname.lastname@example.org, Brendan ScottAdam MajendieAlice TruongFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
China will release official 5G business licenses to major carriers in the country Thursday, according to China's Global Times, an newspaper aligned with the country's Communist Party. This is a significant ...
[Editor's note: This story was previously published in January 2019. It has been republished to reflect the current market sentiment for, what we believe, are long-tail investment ideas.]With the trade war raging, investors can't be blamed for wanting to play some defense. Even when the markets are having one of their green days lately, volatility has been looming. As such, people are buying some more stable stocks, such as the phone companies.Telecom stocks are known for their conservative nature. Even during bear markets and recessions, people tend to keep paying for their phones and internet connections. As such, telecom stocks are a solid place to take shelter during volatile market storms. The fact that most telecoms are dividend stocks, sometimes yielding excess of 5%, only adds to the appeal.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Stocks to Buy for This Decade's Massive Megatrend With all that in mind, what telecom stocks are looking good as we head deeper into 2019? Telecom Stocks To Buy Now: T-Mobile (TMUS)Source: Mike Mozart via Flickr (modified)Let's start off with the telecom stocks to buy in the United States. Unfortunately, Verizon (NYSE:VZ) has run up recently and is no longer a strong value at this price. Meanwhile, AT&T (NYSE:T) has bet the farm on content with the Time Warner deal and is not a good choice for risk-averse telecom investors.That leaves us with T-Mobile (NASDAQ:TMUS) and Sprint (NYSE:S). For years now, there has been talk about how the two need to merge to stay competitive with AT&T and Verizon. It appears that the deal is finally coming to fruition now.On Monday, FCC head Ajit Pai said that: "In light of the significant commitments made by T-Mobile and Sprint as well as the facts in the record to date, I believe that this transaction is in the public interest and intend to recommend to my colleagues that the FCC approve it." The deal is far from a sure thing. There is talk that the DOJ still has misgivings about the potential merger. But in general, the odds now appear to favor the government approving the long-discussed merger.Both T-Mobile and Sprint have struggled to achieve the sort of profitability that the larger two telecom players have obtained. However, combining T-Mobile's nearly 60 million subscribers with Sprint's 40 million would take the company to 100 million, overtaking AT&T to become number two player in the country. T-Mobile believes it can achieve a whopping $6 billion in yearly cost synergies out of the deal, giving it plenty of funds for robust 5G deployment along with, hopefully, dividends and perhaps a share buyback.TMUS stock looks expensive on a standalone basis now, but once it gets Sprint integrated, the company should be a huge profit generator. Telus (TU)Source: Shutterstock Vancouver, Canada-based Telus (NYSE:TU) is a strong choice for yield-seeking telecom investors. The company pays a 4.5% dividend and is gaining market share in its home country. It's supported by solid organic business growth. Telus sported 9.2 million paying subscribers at the end of 2018. That's a gain of around 200,000 subs since the end of 2017 and an increase of half a million since 2016. Telus has benefited from some of the lowest customer churn in the North American telecom industry, keeping customer acquisition costs in line while growing the user base.Telus stock has been off to a good start in 2019. Shares are up 13% year to date. But don't let the recent strength scare you off. Over the past five years, TU stock has consistently traded between $30 and $40, so the $37 share price is pretty muted. Why hasn't TU stock broken out to new highs yet?For one thing, there has been tons of talk about the Canadian "housing bubble" popping. Home prices, particularly in Toronto and Vancouver, have surged in recent years. Government action to cool the market has led to a reversal in prices. This could lead to a recession. Canadian housing data in 2019 is looking particularly ugly so far.Oil prices have been pretty spotty as well, and the Canadian government has taken some anti-oil measures that have led to job losses and economic slowdown in that key industry. * 7 Safe Stocks to Buy for Anxious Investors That said, telecom stocks hold up during recessions. People keep using their phones regardless. With that 4.5% dividend yield and selling at less than 12x forward earnings, TU stock is a buy on any weakness. China Unicom (CHU)Source: Maher Najm via FlickrIt's no secret that the ongoing U.S.-China trade war has put a hex on Chinese stocks. While most of the focus has gone to beaten-down Chinese tech companies, that's not the only place where we can go bargain shopping.For example, look at China Unicom (NYSE:CHU), a leading Chinese mobile carrier. CHU stock started the year at $10.50. It rallied to as far as $13.50 in March as U.S.-China relations were looking up. Now, however, the stock has slumped back to $10.50 as American investors don't want anything to do with Chinese shares.That said, the company, as of its recent semi-annual results, is posting strong numbers despite concerns about the Chinese economy. Its service revenue grew by 8.3%, for example, which was more than double the pace of the industry overall. EBITDA and free cash flow both grew by 5%. For a telecom companies these are fine numbers indeed, especially in a so-so economy.Prior to the trade war, China Unicom stock was trading around $14. Just a couple months ago, it almost reached that level again. From the current $10.50 share price, it's not hard to see a path to 25-30% gains later this year once the trade war is resolved.There's also the possibility that China Unicom may pair up with China Telecom (NYSE:CHA) to combine the second and third largest players in the Chinese market. With the rollout of expensive nationwide 5G networks on the way, this would help the two smaller players stay competitive and save money to compete against behemoth China Mobile (NYSE:CHL). In any case, don't overlook the Chinese mobile carriers as a way to play a fast-growing telecom market with huge mobile data demand.The trade war drama is a negative. Additionally, the FCC has already blocked China Mobile's bid to offer service in the U.S. on national security grounds, adding another question mark for the industry. Tension is high, but this won't drag on forever, and when it ends, CHU stock will make gains. Telefonica (TEF)Source: Shutterstock It was a rotten, no-good year for emerging markets in 2018. If anything, 2019 has gotten off to a worse start. China is dragging down emerging markets around the globe, and the strong U.S. dollar is another headwind. Europe's economy is struggling as well. Hence, Spain's Telefonica (NYSE:TEF) put in an underwhelming performance.Telefonica derives 24% of its business from Spain, 14% from Germany and 13% from the U.K., with most of the rest coming from assorted countries in Latin America. These economies have largely been mediocre to bad in recent years.However, with sustained underperformance comes opportunity. Economic activity tends to revert, and there have been some recent signs of life in various Telefonica markets, notably Brazil, Mexico, and Colombia. The company's operating income has quietly rebounded from just 3.5 billion Euros in 2015 to 5.5 billion in 2016 and 6.8 billion Euros in 2017 before a slight dip recently due to currency swings and restructuring charges. * 7 Stocks to Buy for Over 20% Upside Potential TEF stock has slid a bit in 2019 thanks to the weakness in emerging markets. The current $8 share price is just 5% or so above 52-week lows. That's also way down from the $15 level where it generally traded between 2012 and 2015. Regardless, profitability has been picking up and the company is one of the most widely diversified telecoms out there. It wouldn't take much for TEF stock to catch a bid. Additionally, it has historically paid extremely generous dividends and currently offers a 5% yield. Telecom Stocks To Buy Now: BT Group (BT)Source: Shutterstock For many American investors, BT Group (NYSE:BT) is overshadowed by the U.K's other telecom giant, Vodafone (NASDAQ:VOD). But don't sleep on BT. The $25 billion market cap BT Group has a rather impressive business of its own. And besides, Vodafone, with its recent dividend cut, has some problems at the moment.Turning to BT, it has its mobile business, enterprise division, international subsidiaries and so on. But its crown jewel is Openreach, which controls the phone cables and telecom pipes across Britain. This gives it an effective monopoly over the so-called last mile of connectivity. The British government was considering making BT divest this most powerful asset, but so far, it appears the worst of the regulatory storm has passed.Despite that, BT stock is down from more than $30 a share a few years ago to just $13 now. Much of this has been due to Brexit concerns. Businesses in particular have spent less in preparation for a potential slowdown in the British economy. BT's Italian subsidiary also was hit with an accounting scandal.Regardless, the selling is way overdone, as the company remains strongly profitable and has maintained its greater than 6% dividend yield despite the share price decline. The stock fell another 10% on its recent earnings report, setting up a dip-buying opportunity. From the low $13's, where the stock currently trades, Goldman Sachs sees nearly 50% upside. That, plus the dividend, would be a nice return indeed.At the time of this writing, Ian Bezek owned TEF, BT, and VOD stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post The 5 Best Telecom Stocks to Buy Now appeared first on InvestorPlace.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Next Wednesday Qualcomm (NASDAQ:QCOM) will report its fiscal second quarter results. The Street consensus is that revenues will be $4.8 billion and the earnings will come to 70 cents a share, but such details probably won't matter much for Qualcomm stock.Source: Shutterstock Of course, the conversation will be about the company's recent legal settlement with Apple (NASDAQ:AAPL). The deal has certainly been a huge catalyst. Note that Qualcomm stock is up about 48% since the announcement and the valuation is at levels not seen since the heyday of the dot-com boom in the late 1990s.The details of the settlement are still kind of murky. But the broad outlines include: A payment to Qualcomm for prior missed licensing fees as well as a six-year license agreement (there is also a two-year option).InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Cloud Stocks to Buy Now Now when it comes to litigation, QCOM has a standout track record. Then again it has little choice. The company's core business model is based on leveraging patents to get licensing fees. And this means being able to wage expensive lawsuits.But even though APPL has seemingly unlimited resources, this turned out to be a non-factor. So why did the company throw in the towel?Well, it probably had to do with 5G, which QCOM has a significant lead in terms of multi-gigabit speeds and low latency. As the rollouts of the networks get going, AAPL needs to have its iPhone at the cutting edge.In other words, the company really had no choice but to work something out with QCOM. Something else: As another sign of the company's prowess, Intel (NASDAQ:INTC) has announced that it will abandon its efforts to develop its own 5G modem chips for smartphones.But of course, there were other important highlights in the quarter, such as: * China Unicom (NYSE:CHU) began its 5G rollout with QCOM's Snapdragon 855 Mobile Platform, which is based on the X50 5G Modem. * QCOM announced significant traction with its Vision Intelligence Platform, which leverages AI and machine learning for sophisticated tracking, identification and classification of people, objects and sounds. Some of the partners include Microsoft (NASDAQ:MSFT), Cisco (NASDAQ:CSCO), AnyVision and Linkflow. * The company announced its AI chip for the data center, which is based on inference processing. The technology will supercharge applications like NLP (Natural Language Processing), image search and personalization. In fact, the chip has more than 10 times the performance per watt versus the most advanced AI solutions on the market. * QCOM launched its Robotics RB3 Platform. It's an integrated system to help design advanced robots and drones, whether for enterprise or consumer purposes. Some of the functions include computer vision, machine learning, perception, localization, mapping and navigation. * The company's CFO, George Davis, departed from the company after six years. David Wise, who is the Treasurer and Senior Vice President, will take his place on an interim basis until a permanent replacement is found. Bottom Line On Qualcomm StockBased on the settlement, QCOM estimates that there will be $2 per share in additional EPS. This would mean that this year will see a total of about $6 - putting the forward price-to-earnings multiple at 14X. This is fairly reasonable for a company that is poised to benefit from the 5G megatrend.Qualcomm stock also has an attractive dividend, which is at 4.35%. This is one of the highest among tech companies.True, there are still some notable risk factors with Qualcomm stock. After all, there will likely be challenges with the development of the 5G chips and there is also the pending lawsuit from Federal Trade Commission.But such things are manageable and yes, Qualcomm stock probably has room on the upside, especially as we learn more about the Apple agreement and the rollouts for 5G.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 5 Hot Dividend Stocks to Buy as the Weather Heats Up * 7 Dividend Stocks That Could Double Over the Next Five Years * 10 Stocks to Sell Before They Give Back 2019 Gains * 7 Cloud Stocks to Buy Now Compare Brokers The post Next Weekas Earnings Report Will Be a Biggie for Qualcomm Stock appeared first on InvestorPlace.
The Latest on 5G Equipment Vendors Nokia and Ericsson(Continued from Prior Part)A total of 60% of the world’s 4G base stations are in China Ericsson (ERIC) expects Chinese operators to begin deploying 5G networks in the coming months, executives
April 23 (Reuters) - China United Network Communications Ltd : * SAYS Q1 NET PROFIT UP 24.8 PERCENT Y/Y AT 1.6 BILLION YUAN ($238.16 million) Source text in Chinese: https://bit.ly/2PmZAmL Further company ...
April 23 (Reuters) - China Unicom Hong Kong Ltd: * QTRLY PROFIT ATTRIBUTABLE RMB 3,675 MILLION VERSUS RMB 3,005 MILLION * QTRLY REVENUE RMB 73,147 MILLION VERSUS RMB 74,935 MILLION Source text for Eikon: ...
This is understandable: Consolidating it would provide Beijing with a huge windfall of oil and natural gas, and a potential chokehold over up to 40 percent of the world’s shipping. Another key element, one that’s far harder to discern, is Beijing’s increasing influence in constructing and repairing the undersea cables that move virtually all the information on the internet. To understand the totality of China’s “Great Game” at sea, you have to look down to the ocean floor.
Hedge funds are known to underperform the bull markets but that's not because they are bad at investing. Truth be told, most hedge fund managers and other smaller players within this industry are very smart and skilled investors. Of course, they may also make wrong bets in some instances, but no one knows what the […]
The Latest Buzz from Tencent and iQiyi(Continued from Prior Part)Companies to jointly create 5G productsiQiyi (IQ) will collaborate with China Unicom (CHU) to develop virtual reality (or VR) products, the companies announced recently. This
BlackBerry (BB) provides one of the most secure mobile enterprise solutions in the market through a broad portfolio of products and services. Growth in its cybersecurity business is a huge positive.
March 13 (Reuters) - China United Network Communications Ltd : * SAYS 2018 NET PROFIT UP 858.3 PERCENT Y/Y AT 4.08 BILLION YUAN ($608.16 million) Source text in Chinese: https://bit.ly/2CkCkjO Further ...
Chinese telecom operator China Unicom Hong Kong on Wednesday reported a more than five-fold jump in 2018 net profit, beating estimates, which it attributed to a mixed-ownership reform. Net profit for the full year was 10.2 billion yuan ($1.52 billion), the company said in a statement, while 15 analysts polled by Refinitiv had an average forecast of 8.5 billion yuan. Total revenue for the full year rose 5.8 percent to 291 billion yuan, against the average estimate of 287 billion yuan by 21 analysts on Refinitiv.
March 13 (Reuters) - China Unicom Hong Kong Ltd: * FY REVENUE RMB 290,877 MILLION VERSUS RMB 274,829 MILLION * FY PROFIT ATTRIBUTABLE RMB10,197 MILLION VERSUS RMB1,828 MILLION * PROPOSED PAYMENT OF A FINAL ...
The Latest Updates from Nokia and Ericsson(Continued from Prior Part)Europe’s undoing includes heavy regulation Ericsson (ERIC) fears that Europe could be shooting itself in the foot by failing to provide an environment that would spur the uptake