The telecom industry is a recession-proof sector for many investors. Big dividends and stable revenue mean you have to experience quite a shock for highly entrenched telecoms to suffer. After all, in many regions there is no competition, and customers have to decide whether they want to go without phone or TV service if they don’t like their local option!
However, not all telecoms are doing well right now. I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, I recommend five telecom stocks to sell.
Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.” Here they are:
Telecom Italia (NYSE:TI) provides fixed and mobile telecommunications services in Italy. In the last year, TI has posted a loss of 22%, while the Dow Jones has posted a gain of 12% in the same time. Telecom Italia stock gets an “F” grade for sales growth, an “F” grade for operating margin growth, an “F” grade for earnings momentum, and an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street. For more information, view my complete analysis of TI stock.
CenturyLink (NYSE:CTL) provides its customers with voice, Internet, data and video services. Despite gains from the broader markets in the past year, CenturyLink stock has dipped 6%. CTL stock gets an “F” grade for operating margin growth, an “F” grade for earnings growth, an “F” grade for earnings momentum, an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “D” grade for the magnitude in which earnings projections have increased over the past months, and a “D” grade for return on equity. For more information, view my complete analysis of CTL stock.
France Telecom (NYSE:FTE) is a mobile operator and telecommunications services provider. Since last March, the stock has dropped a significant 29%. FTE stock gets a “D” grade for the magnitude in which earnings projections have increased over the past months and a “D” grade for cash flow in my Portfolio Grader tool. For more information, view my complete analysis of FTE stock.
NTT DoCoMo (NYSE:DCM) is a Japanese mobile communication business. DCM stock is down 5% since this time last year. DCM stock gets an “F” grade for its ability to exceed the consensus earnings estimates on Wall Street, and a “D” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of DCM stock.
America Movil (NASDAQ:AMOV) is a wireless communications service company in Latin America. AMOV rounds out the list with a loss of 11% in the last 12 months. America Movil stock gets a “D” grade for cash flow in my Portfolio Grader tool.
Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.
