Stock in Focus: Telefónica, S.A. (TEF)

Company Profile:

Telefónica, S.A. provides mobile and fixed communication services primarily in the European Union and Latin America. The company’s mobile and related services and products comprise mobile voice, value added, mobile data and Internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services. Its fixed telecommunication services include PSTN lines; ISDN accesses; public telephone services; local, domestic, and international long-distance and fixed-to-mobile communications; corporate communications; supplementary and business oriented value-added; video telephony; intelligent network; and telephony information services.The company was founded in 1924 and is based in Madrid, Spain.

Recent News:

Telefónica has a market capitalization of €37b. It does have institutional investors; and they hold 33% of the stock.Telefónica is not owned by hedge funds. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Telefónica is a highly-regarded dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

TEF’s strengths can be seen in its better growth, better profitability and better efficiency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator and MACD. The RSI stands at 48.45 with positive bias. We rate Telefónica, S.A. (TEF) a STRONG BUY.

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