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Why Telefonica Brasil (VIV) is a Top Value Stock for the Long-Term
VIVTelefonica Brasil S.A.(VIV) ZACKS·2024-12-18 15:46

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1][2] Zacks Style Scores - Zacks Style Scores are indicators that help investors select stocks likely to outperform the market in the next 30 days, rated from A to F based on value, growth, and momentum characteristics [3][4][5][6][7] Value Score - The Value Style Score focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow to identify those with sustainable growth potential [5] Momentum Score - The Momentum Style Score assesses stocks based on price trends and earnings outlook changes, indicating optimal times to invest in high-momentum stocks [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth forecasts, and promising momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, outperforming the S&P 500 [8][9] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [11][12][13] Company Spotlight: Telefonica Brasil - Telefonica Brasil S.A., the largest telecom operator in Brazil by revenue, holds a Zacks Rank of 3 (Hold) and a VGM Score of A, with a Value Style Score of A due to a forward P/E ratio of 12.83 [14][15] - Recent upward revisions in earnings estimates for fiscal 2024 indicate a consensus estimate increase of 0.02to0.02 to 0.63 per share, with an average earnings surprise of 10% [15][16]