Stock in Focus: Telecom Argentina Stet – France Telecom S.A. (NYSE:TEO)

Research analysts have given Telecom Argentina Stet – France Telecom S.A. (NYSE:TEO) a consensus one year price target of $19.19. This is the average number based on the brokerages polled by Thomson Reuters’ First Call. These same sell-side analysts are expecting that the company will report $0.52 earnings per share next quarter and earnings of $2.20 per share for the current year.

Technical Levels

In taking a look at the price level and moving averages of Telecom Argentina SA, the equity is trading $-1.20 away or -7.10% from its 50-day moving average of $16.87. Looking further back, the stock is $-4.48 away from its 200-day moving average of $20.15, or a difference of -22.23%. Based on a recent trade, the equity is trading $-10.72 away from its 52-week high of $26.39 and $+9.73% away from its 52-week low of $14.28.

Valuation

In taking a look at the current valuation of Telecom Argentina SA, the price/earnings ratio, commonly referred to as the P/E ratio, is a standard method for comparing stocks based on their relative expense. This is determined by dividing its current price per share by its earnings per share. The P/E ratio for the company currently sits at $7.37. Shares of the firm closed the last trading session at $15.67 and the current market cap stands at $3.04B.

Taking a step further, investors can take into consideration growth of the company’s earnings by looking at its PEG ratio, or the Price/Earnings Growth ratio. A low PEG ratio means that the company is trading at a low price relative to its earnings growth potential. A high PEG ratio means that the company’s stock is trading at a high price relative to its earnings growth potential. Typically a company is considered to be undervalued if the PEG ration is between 0 and 1. The fair value of the stock is typically present when the ratio is between 1 and 2. A stock with a PEG of over 2, could be considered overvalued. The firm currently has a three to five year PEG ratio of 1.63.

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