Hang Up on These 6 Telecom Stocks

by Portfolio Grader | May 2, 2012 1:00 pm

You may think that sleepy telecom stocks are the perfect investment, since they have reasonably high dividend yields and because telecommunications is a stable business with reliable revenues. Of course, that means there’s not a lot of growth for some of these companies either – and what you make in dividends you could lose in falling share prices, and then some.

I watch more than 5,000 publicly traded companies with my Portfolio Grader[1] tool, ranking companies by a number of fundamental and quantitative measures. And this week, I identify six telecom stocks to sell.

Here they are, in alphabetical order. Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”

America Movil (NYSE:AMX[2]) is a Mexican wireless communications services company that has reported a loss of 7% since May 2011. America Movil stock gets an “F” grade for sales growth, a “D” grade for earnings growth and a “D” grade for earnings momentum.. For more information, view my complete analysis of AMX stock[3].

France Telecom (NYSE:FTE[4]) is a mobile operator and Internet service provider operating in Europe. In the last 12 months, FTE stock dropped 41%, compared to gains by the broader markets. France Telecom 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. For more information, view my complete analysis of FTE stock[5].

NTT DOCOMO (NYSE:DCM[6]) is a Japanese mobile communication business. DCM stock has posted a loss of 8% in the last 12 months. DCM stock gets a “D” grade for sales growth, a “D” grade for operating margin growth and a “D” grade for earnings growth. For more information, view my complete analysis of DCM stock[7].

Telecom Italia (NYSE:TI[8]) operates mainly in the fixed and mobile national and international telecommunications sector. While the broader markets have posted gains in the last year, TI stock is down 25%. 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[9].

Telefonica (NYSE:TEF[10]) operates the following business segments: Telefonica Spain, Telefonica Europe and Telefonica Latin America. Telefonica stock is down 46% since last May. TEF stock gets an “F” grade for sales growth, an “F” grade for operating margin growth, a “D” grade for earnings momentum 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 TEF stock[11].

VimpelCom (NYSE:VIP[12]) offers a range of wireless, fixed, and broadband services across Asia and Africa. In the past 12 months, VimpelCom stock has dropped 30%. VIP stock gets a “D” grade for operating margin growth, a “D” grade for earnings growth, an “F” grade for earnings momentum 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 VIP stock[13].

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader[14] tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

 

Endnotes:
  1. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/
  2. AMX: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMX
  3. For more information, view my complete analysis of AMX stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=amx&submit=submit&type=site
  4. FTE: http://studio-5.financialcontent.com/investplace/quote?Symbol=FTE
  5. For more information, view my complete analysis of FTE stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=fte&submit=submit&type=site
  6. DCM: http://studio-5.financialcontent.com/investplace/quote?Symbol=DCM
  7. For more information, view my complete analysis of DCM stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=dcm&submit=submit&type=site
  8. TI: http://studio-5.financialcontent.com/investplace/quote?Symbol=TI
  9. For more information, view my complete analysis of TI stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=ti&submit=submit&type=site
  10. TEF: http://studio-5.financialcontent.com/investplace/quote?Symbol=TEF
  11. For more information, view my complete analysis of TEF stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=tef&submit=submit&type=site
  12. VIP: http://studio-5.financialcontent.com/investplace/quote?Symbol=VIP
  13. For more information, view my complete analysis of VIP stock: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=vip&submit=submit&type=site
  14. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/

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