Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks across various market conditions, utilizing established valuation metrics to uncover potential opportunities [2][3] Company Summary: Telefonica Brasil (VIV) - Telefonica Brasil (VIV) holds a Zacks Rank of 1 (Strong Buy) and an A grade in the Value category, indicating strong potential for value investors [4] - The stock is currently trading at a P/E ratio of 17.51, which is lower than the industry average of 18.96. Over the past 12 months, VIV's Forward P/E has fluctuated between 10.45 and 17.57, with a median of 13.10 [4] - VIV has a PEG ratio of 0.80, significantly lower than the industry average of 1.41. Its PEG has ranged from 0.63 to 1.14 over the past 52 weeks, with a median of 0.81 [5] - The P/B ratio for VIV is 1.58, which is attractive compared to the industry average of 2.50. The P/B ratio has varied between 0.96 and 1.67 in the last 12 months, with a median of 1.20 [6] - These valuation metrics suggest that Telefonica Brasil is likely undervalued, supported by a strong earnings outlook, making it an appealing value stock at present [7]

Company Overview - Telephone and Data Systems, Inc. (TDS) provides wireless, broadband, video, and voice services to approximately 5.5 million connections nationwide through its subsidiaries, UScellular and TDS Telecom [2] - TDS was founded in 1969 and is headquartered in Chicago, employing approximately 7,800 associates as of March 31, 2025 [2] Upcoming Financial Events - TDS and United States Cellular Corporation will webcast their second quarter operating results conference call on August 11, 2025, at 9:00 a.m. Central Time [1] - The companies will release their financial results on the same date, August 11, 2025 [1] - Interested parties can access the webcast through the events & presentations pages of their respective investor websites, with a recommendation to register at least 15 minutes prior to the presentation [1]

Group 1 - Rogers Communication (NYSE: RCI) has experienced significant stock price increases over the past month and three months, attributed to improved margins and stable top-line growth along with consistent dividends [1] - The company's tariff exposure is low, which may contribute to its financial stability [1] Group 2 - The analysis focuses on foreign stocks, particularly in the Nordic market, covering a range of companies from stable blue-chip firms to emerging market leaders [1] - There is an emphasis on identifying undervalued opportunities and exploring unique business models within the U.S. growth stock market [1]

Group 1 - Verizon Communications reported better-than-expected second-quarter results and raised its full-year guidance, marking its 35th consecutive year of being recognized for the best wireless network quality by J.D. Power [1] - The company's forward price-to-earnings ratio is below 9.2, significantly lower than the S&P 500's forward earnings multiple of 22.7, indicating that Verizon's shares are not priced for perfection [8] - Verizon's business is largely resistant to the impact of tariffs and overall economic downturns, as wireless services are considered essential by consumers [10] Group 2 - The company is on track to close the acquisition of Frontier Communications in early 2026, which is expected to boost growth [12] - Verizon's forward dividend yield is 6.3%, providing a strong foundation for delivering double-digit percentage total returns, supported by an increase in free cash flow expected this year [13]

Core Insights - Guangdong Province's total telecom business volume reached 99.6 billion yuan in the first half of 2025, marking a year-on-year growth of 9.3% [1] - Telecom business revenue totaled 112.73 billion yuan, with a year-on-year increase of 1.1% [1] - The number of mobile phone base stations in Guangdong reached 1.134 million, including 632,000 4G stations and 423,000 5G stations [1] Group 1: User Statistics - As of the end of June, Guangdong had over 200 million telephone users, with fixed-line and mobile users at 16.18 million and 189 million respectively [3] - The total number of 4G users in Guangdong was 61.28 million, while 5G users reached 121 million, nearly double the number of 4G users [3] - Guangdong's mobile internet user base stood at 170 million, with a penetration rate of 133.4 users per 100 people [3] Group 2: 5G and Broadband Developments - Nationally, 5G mobile phone users reached 1.118 billion, with a net increase of 104 million from the previous year, accounting for 61.8% of mobile phone users [3] - Guangdong's fixed broadband users totaled 51.613 million, with 49.299 million FTTH/O users and 1.964 million users with speeds above 500M [3] - The province has initiated the construction of 10,000 Mbps optical networks, with Guangdong Telecom and Guangdong Mobile launching related services [4] Group 3: Call and Messaging Trends - Fixed-line call duration in Guangdong reached 6.55 billion minutes, down 15.8% year-on-year, while mobile call duration totaled 160.57 billion minutes, down 8.3% [5] - Despite a decline in call services, mobile SMS volume in Guangdong reached 108.09 billion messages, a decrease of 7.3%, contrasting with a national increase of 22.3% [5] - The average mobile internet access traffic in Guangdong was 22.5 GB per user per month, significantly higher than the national average [5] Group 4: Infrastructure Development - As of the end of June, Guangdong's optical cable length reached 4.732 million kilometers, with specific lengths for long-distance, local network, and access network [6] - The total number of fixed broadband access ports was 108 million, with FTTH/O ports accounting for 97.2% of the total [6]

Core Points - Orange Belgium and Proximus have signed a Memorandum of Understanding (MoU) to collaborate on expanding fiber deployment and improving access to gigabit networks in Wallonia [1][3] - The collaboration aims to benefit approximately 1.4 million homes and businesses in medium-to-low population density areas, while maintaining independent network rollouts in densely populated areas [3][5] - The partnership will enable around 70% of homes in Wallonia to be covered by Fiber-to-the-Home (FTTH) networks [5] Fiber Deployment Strategy - Proximus will continue to roll out FTTH to 600,000 homes and businesses in medium-density areas through its joint venture Unifiber [4] - In less densely populated areas, both companies will work together to make FTTH networks accessible to about 200,000 homes and businesses, using cost-efficient deployment methods [5] - Proximus will utilize Orange Belgium's Hybrid Fiber Coax (HFC) network to offer services to approximately 600,000 homes in sparsely populated zones, providing gigabit speeds [6] Benefits of Collaboration - The joint approach will minimize construction disruptions, accelerate deployment, and improve coordination with local authorities, leading to better cost control [7] - The MoU is a result of discussions following announcements from the Belgian Institute for Postal Services and Telecommunications (BIPT) and the Belgian Competition Authority (BCA) regarding potential collaborations [8] Future Developments - Further details on the cooperation agreement will be communicated after formal signing, expected in the fourth quarter [9] - Both companies emphasize the importance of collaboration for enhancing digitalization in Belgium, aiming for a win-win situation for citizens, businesses, and operators [11]

Group 1 - AT&T Inc. reported better-than-expected earnings for the second fiscal quarter, surpassing both bottom and top line expectations [1] - The strong performance was driven by significant growth in the company's core broadband operations [1] - AT&T added 243 thousand new subscribers to its broadband service during the quarter [1]

Group 1: Bond Market Outlook - The yield on the 10-year treasury is expected to remain in the low-to-mid 4% range in 2025, with the FOMC on track to reduce interest rates by approximately 2% over time, suggesting a similar decline in bond yields [1] Group 2: High-Yield Stocks - Mid-2025 is identified as an opportune time to invest in high-yield stocks, with companies like Verizon, Stanley Black & Decker, J.M. Smucker, and PepsiCo trading near historically low valuations and offering yields of at least 4% [2] - Verizon's dividend yield is projected to be 6.5% in mid-2025, supported by a mid-single-digit equity gain and a modest single-digit growth pace expected in 2025 [4][5] - Stanley Black & Decker's shares have hit a decade low, presenting a generational buying opportunity, with a dividend yield of 4.42% and a strong dividend increase track record of 58 years [7] - J.M. Smucker Company has a dividend yield of 3.96%, with a solid balance sheet and a share price expected to rebound strongly in the latter half of the year [10][12] - PepsiCo's dividend yield is substantial at 3.91%, with a diversified growth strategy that has allowed it to maintain a healthy balance sheet while covering capital returns [14][16]

Financial Data and Key Metrics Changes - The company reported a service revenue growth of 5.5% in Q1 2026, with EBITDA growth of 4.9%, both in line with expectations [2][3][4] - The company reiterated its growth guidance for both EBITDA and cash flow, expecting strong double-digit free cash flow growth per share for shareholders [4] Business Line Data and Key Metrics Changes - In Germany, while headline net customer additions were negative, there was an improvement in the valuable customer base, with branded contract churn now at single digits, the lowest in four years [4][5][18] - The UK market showed a slowdown in service revenue growth from 3% to 1%, with a loss of 46,000 contract net adds attributed to legacy managed services contracts and the performance of the three brands [27][31][36] Market Data and Key Metrics Changes - Emerging markets, particularly Turkey and Africa, delivered strong growth in euro terms, contributing positively to overall revenue growth [3] - Competitive pressure in Portugal has slowed growth, but the company maintains a strong position in customer loyalty and experience [46][47] Company Strategy and Development Direction - The company is focused on improving customer experience and simplifying internal operations, with a significant emphasis on value over volume in mobile services [9][81] - The integration of Vodafone and Three UK is expected to enhance customer experience and network quality, with a target of achieving significant synergies from the merger [8][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in Germany, citing improvements in customer experience and operational excellence [9][23][58] - The company is cautious about the competitive landscape in Germany and is focused on completing its turnaround strategy [58][59] Other Important Information - The company is investing heavily in network improvements, including a €1.5 billion investment to enhance network quality across the UK [38][41] - The OXG project in Germany is progressing well, with plans to accelerate the rollout to reach 7 million households [66][123] Q&A Session Summary Question: Outlook for service revenue growth in Germany - Management indicated that while there are challenges, they expect to return to service revenue growth in Germany during the year, driven by improved customer experience and the removal of negative impacts from MDUs [14][16][23] Question: Trends in the UK market - Management acknowledged a slowdown in the UK market but emphasized that the integration with Three UK will provide significant opportunities for future growth [30][36] Question: Performance in Portugal and Greece - Management noted that while Portugal faces competitive pressures, they expect service revenue growth to remain positive in the second half of the year, with Greece anticipated to show stronger performance [50][51] Question: Technology roadmap for cable infrastructure in Germany - Management confirmed that they are focused on maintaining a competitive edge in cable infrastructure, with ongoing investments to enhance service quality [68][70] Question: Strategy regarding value over volume - Management reiterated the importance of focusing on value rather than volume in mobile services, emphasizing the need for a valuable customer base [81][82]

Financial Data and Key Metrics Changes - The company reported a service revenue growth of 5.5% in Q1 2026, with EBITDA growth of 4.9%, both in line with expectations [1][2] - The company reiterated its growth guidance for both EBITDA and cash flow, expecting strong double-digit free cash flow growth per share for shareholders [3] Business Line Data and Key Metrics Changes - In Germany, while net customer additions were negative, there was an improvement in the valuable customer base, with branded contract churn now at single digits, the lowest in four years [4][16] - The UK joint venture with Three has begun operations, aiming to enhance customer experience and integrate multi-brand strategies [5][6] Market Data and Key Metrics Changes - Emerging markets, particularly Turkey and Africa, showed strong growth in euro terms, contributing positively to overall revenue [2] - Competitive pressures in Portugal have slowed growth, but the company maintains a strong position in customer loyalty and experience [44][45] Company Strategy and Development Direction - The company is focused on improving customer experience across Europe and Africa while simplifying internal operations [7] - The merger with Three UK is expected to deliver significant synergies, with a target of at least EUR 700 million in cost and CapEx synergies per annum from the fifth year [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in Germany, citing improvements in customer experience and operational excellence [20][56] - The company is cautious about the competitive environment in mobile and fixed markets, emphasizing value over volume in its strategy [78][81] Other Important Information - The company is investing significantly in network improvements, including a EUR 1.5 billion investment in the UK network to enhance service quality [35] - The company is also focused on data sovereignty and security, responding to increasing customer concerns in these areas [88][92] Q&A Session Summary Question: Outlook for service revenue growth in Germany - Management acknowledged the competitive conditions but expressed optimism about returning to growth, particularly as the impact of negative factors diminishes [12][14] Question: Trends in the UK market - Management clarified that the UK market is experiencing a slowdown due to legacy contract losses but expects improvements as the integration with Three progresses [27][31] Question: Performance in Portugal and Greece - Management indicated that the slowdown in Portugal is expected to be a one-time effect, while Greece is anticipated to show stronger performance in the second half of the year [42][48] Question: Data sovereignty and B2B strategy - Management highlighted the importance of data sovereignty and its relevance to the B2B strategy, particularly in sectors like public services and defense [88][90] Question: Regulatory environment and fixed access - Management emphasized the need for maintaining regulatory frameworks in monopolistic conditions to ensure fair access for customers [102][106]