Stocks

Telefonica Brasil Outshines Telus in Value Investment Potential

2 Mins read

© Reuters.

Telefonica Brasil (NYSE:) is demonstrating strong investment potential compared to Telus (NYSE:NYSE:), according to assessments conducted using the Zacks Rank and Style Scores system. As of Friday, VIV holds a Zacks Rank of #2 (Buy), indicating a positive earnings outlook, whereas Telus has been assigned a rank of #3 (Hold).

Value investors, who base their decisions on fundamental metrics like the P/E ratio, P/S ratio, earnings yield, and cash flow per share, as well as the expected EPS growth rate, have reason to be optimistic about Telefonica (NYSE:) Brasil. The company’s forward P/E ratio stands at 16.27, lower than Telus’ 21.44. Moreover, VIV’s PEG ratio, which factors in the expected EPS growth rate, is 0.97 compared to TU’s 2.83.

InvestingPro data also brings into light Telefonica Brasil’s robust financial health. The company boasts a market cap of 15.19B USD and a P/E ratio of 15.93, which is lower than its forward P/E ratio. The company’s revenue growth has been consistent, with a 10.05% increase in the last twelve months leading up to Q2 2023. This positive trend is expected to continue, as indicated by the 7.62% quarterly revenue growth for FY2023.Q2.

Telefonica Brasil’s Gross profit stands at 4949.46M USD, with a healthy gross profit margin of 47.11%. The company’s operating income, adjusted for Q2 2023, is 1539.05M USD, indicating strong operational efficiency. The company’s strong financial performance is also reflected in its EBITDA growth of 1.68% for LTM2023.Q2.

Further bolstering Telefonica Brasil’s appeal is its P/B ratio – a measure of a stock’s market value against its book value. VIV’s P/B ratio is 1.07, significantly lower than TU’s 1.85. These statistics contribute to VIV receiving a Value grade of A and TU being assigned a C grade.

Telefonica Brasil also stands out for its high earnings quality, with free cash flow exceeding net income, and its high shareholder yield as per InvestingPro Tips. The company is also a prominent player in the Diversified Telecommunication Services industry and has maintained dividend payments for 25 consecutive years. These factors, combined with the fact that it’s trading near its 52-week high, make Telefonica Brasil an attractive investment option.

These robust valuation metrics, along with Telefonica Brasil’s strong earnings outlook and its solid financial performance as indicated by InvestingPro data, position it as an attractive value investment option when compared to Telus. For more insights and investment tips, check out InvestingPro’s premium offerings which include additional tips on companies like Telefonica Brasil.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Read the full article here

Related posts
Stocks

NVIDIA launches 800Gb/s networking platforms for AI By Investing.com

2 Mins read
SAN JOSE, Calif. – NVIDIA (NASDAQ:) has unveiled its latest networking platforms, the Quantum-X800 InfiniBand and Spectrum-X800 Ethernet, which are the first…
Stocks

Upexi CEO buys $44.7k in company stock By Investing.com

2 Mins read
In a recent move, Allan Marshall, the Chief Executive Officer of UPEXI, Inc. (NASDAQ:UPXI), a company specializing in medicinal chemicals and botanical…
Stocks

Apple dominates buybacks as S&P 500 share repurchases jump by nearly fifth in Q4 By Investing.com

2 Mins read
Investing.com — Stock buybacks among companies climbed by nearly a fifth in the fourth quarter from the prior quarter, with Apple leading…
Get The Latest News

Subscribe to get the top fintech and
finance news and updates.

Leave a Reply

Your email address will not be published. Required fields are marked *