7. Telefónica, S.A. (NYSE:TEF)
Number of Hedge Fund Holdings: 9
Forward P/E Ratio as of January 24: 11.73
Earnings Growth This Year: 18.75%
Stock Price as of January 24: $3.91
Telefónica, S.A. (NYSE:TEF) is a multinational telecommunications company headquartered in Spain, The company has a presence in over 20 countries and serves millions of customers across Europe, Latin America, and beyond. The company provides mobile, broadband, and pay-TV services, as well as advanced digital solutions for businesses.
Telefónica, S.A. (NYSE:TEF) is heavily investing in digital transformation to stay at the forefront of technological advancements and is actively expanding its next-generation infrastructure to enhance its network capabilities and provide superior customer services. The company has been rolling out its fiber network and has a target of around 30 million by 2026. In Germany, Telefónica, S.A. (NYSE:TEF) has strengthened its position as a fiber infrastructure provider by acquiring Infra Fiber Germany, which will accelerate the expansion to 2 million premises. Additionally, Telefónica, S.A. (NYSE:TEF) is investing in 5G infrastructure and aims to offer cutting-edge connectivity solutions that will enhance customer satisfaction and drive premium service adoption.
Telefónica, S.A. (NYSE:TEF) is also focusing on increasing its backlog of higher-value contracts, which will bring more recurring services and revenue flows. The company’s Tech division, which includes managed and professional services, is concentrating on large contracts from the private sector. Furthermore, Telefónica, S.A. (NYSE:TEF) is exploring potential in-market consolidation opportunities to reduce network overlap and use invested capital more efficiently.
