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In the search for potentially undervalued stocks, we ran a screen based on the theoretical assumption that if P/E is equal to a constant K, growth in EPS estimates should be matched by proportionate growth in price. When they don’t match up, a mispricing may have occurred.

We screened wireless communications stocks for those exhibiting this trend.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬



We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

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Do you think these stocks should be trading higher? Use this list as a starting point for your own analysis.

List sorted by increase in EPS analyst projection.

1. Telular Corp. (NASDAQ:WRLS): Designs, develops and distributes products and services that utilize wireless networks to provide data and voice connectivity among people and machines primarily in the United States and internationally. Market cap of $86.07M. Over the last 30 days, analyst projected EPS has increased 21.74% (from $0.23 to $0.28), while the price has decreased 6.10% (from $6.07 to $5.70). It has been a rough couple of days for the stock, losing 5.32% over the last week.

2. Vivo Participacoes S.A. (NYSE:VIV):
Wireless Communications Industry. Market cap of $32.33B. Over the last 30 days, analyst projected EPS has increased 4.12% (from $2.67 to $2.78), while the price has increased 1.81% (from $28.21 to $28.72). After a solid performance over the last year, VIV has pulled back during recent sessions. The stock has gained 34.33% over the last year.

3. United States Cellular Corp. (NYSE:USM):
Operates as a wireless telecommunications service provider in the United States. Market cap of $3.40B. Over the last 30 days, analyst projected EPS has increased 2.76% (from $1.81 to $1.86), while the price has increased 0.88% (from $39.89 to $40.24). The stock is a short squeeze candidate, with a short float at 9.2% (equivalent to 15.16 days of average volume). It has been a rough couple of days for the stock, losing 6.05% over the last week.

4. Cellcom Israel Ltd. (NYSE:CEL): Provides cellular communications services in Israel. Market cap of $2.08B. Over the last 30 days, analyst projected EPS has increased 0.93% (from $10.78 to $10.88), while the price has decreased 1.60% (from $21.26 to $20.92). The stock is currently stuck in a downtrend, trading 6.28% below its SMA20, 15.85% below its SMA50, and 28.91% below its SMA200. It has been a rough couple of days for the stock, losing 5.81% over the last week.

5. Knology, Inc. (NASDAQ:KNOL):
Provides video, voice, data and advanced communications services to residential and business customers in the southeastern and mid-western United States. Market cap of $487.94M. Over the last 30 days, analyst projected EPS has increased 0.74% (from $1.36 to $1.37), while the price has decreased 4.21% (from $13.53 to $12.96). The stock has gained 5.37% over the last year.

6. TELUS Corporation (NYSE:TU): Provides telecommunications products and services primarily in Canada. Market cap of $15.98B. Over the last 30 days, analyst projected EPS has increased 0.53% (from $3.77 to $3.79), while the price has decreased 3.94% (from $51.27 to $49.25). It has been a rough couple of days for the stock, losing 5.27% over the last week.

*EPS projections and price data sourced from Yahoo! Finance, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 6 Wireless Stocks Undervalued By EPS Trends