Telefonica (TEF) Upgraded to Buy: Here's Why

Core Viewpoint - Telefonica (TEF) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook for its stock based on rising earnings estimates [1][3]. Earnings Estimates - The Zacks Consensus Estimate for Telefonica has increased by 22.4% over the past three months, reflecting a positive trend in earnings expectations [8]. - For the fiscal year ending December 2025, Telefonica is expected to earn $0.46 per share, which remains unchanged compared to the previous year [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10]. - The Zacks Rank 2 upgrade positions Telefonica in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Impact on Stock Price - Changes in earnings estimates are strongly correlated with stock price movements, and institutional investors often react to these changes, influencing stock valuations [4][5]. - The upgrade reflects an improvement in Telefonica's underlying business, which is expected to positively impact its stock price as investor sentiment improves [5].