7 Telecom Stocks Near 52-Week Lows

If you're aiming to "buy low and sell high," then it makes infinite sense to start your search with bargain-priced stocks. Regularly reviewing a list of stocks trading near their 52-week lows can be a great first step.

Here, I'll try to do the initial legwork for you. To prevent us from being inundated with scores of disparate companies, I'll conduct my search by industry. This will allow us to make some initial comparisons among semi-related companies.

There are 24 industry groups as defined by the Global Industry Classification Standard. Telecommunication services is one of them.

Below are the top six companies in this space (by market cap) that are hugging 52-week lows.

Company

Market Capitalization (in millions)

% Change From 52-Week Low

P/E Ratio (trailing)

 

China Mobile (NYSE: CHL  )

                     $207,779

                         17.2%

                         12.1

AT&T (NYSE: T  )

                     $167,165

                         19.0%

                         8.0

NTT DOCOMO (NYSE: DCM  )

                      $68,809

                         19.2%

                         11.5

Nippon Telegraph & Telephone (NYSE: NTT  )

                      $59,623

                         15.3%

                         9.6

VimpelCom (NYSE: VIP  )

                      $18,968

                         19.2%

                         11.1

Vivo Participacoes (NYSE: VIV  )

                      $17,030

                         22.8%

                         20.5

Source: Capital IQ, a division of Standard & Poor's. Data as of Oct. 24.

This list is a sampling of telecom from around the world.

Most of the earnings multiples you see are in the low to reasonable range because of low to middling growth expectations. The exceptions are VimpelCom and Vivo, which have double-digit analyst growth expectations.

Of course, with slower growth can come tasty dividends. For example, AT&T and France Telecom both have dividend yields above 5%. One thing to note, though, if you're lusting after AT&T's 8.0 P/E ratio and 5.9% dividend combo -- AT&T's recent earnings are juiced because of a one-time tax benefit, so that P/E ratio looks artificially low.

If you are interested in reading more about these stocks, add them to My Watchlist to find all of our Foolish analysis on them.

Editor's Note: A previous version of this article listed “% Change From 52-Week Low” values based on the home exchanges of foreign-based stocks. We have adjusted to reflect the U.S.-listed values. We have also removed France Telecom from the list.

Anand Chokkavelu doesn't own shares of any companies mentioned. He posts his favorite articles on his Twitter feed.

France Telecom is a Motley Fool Income Investor choice. The Fool owns shares of China Mobile. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 25, 2010, at 8:02 PM, g1rge wrote:

    WOW

    AT&T is 19% off of it's 52 week low..........but it's 3.6% away from its 52 week high. Why do you print this stuff?

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