Is Alcatel Lucent SA (ADR) Still a Buy After Its Earnings Blowout?

Is there more room for Alcatel Lucent to run after its recent smash earnings report?

Feb 14, 2014 at 4:54PM

After being effectively left for dead no less than two years, shares of French-American telecom giant Alcatel Lucent (NYSE:ALU) can do no wrong these days.

Since bottoming in late 2012, Alcatel Lucent's stock has surged more than 300%. And in the wake of its recent earnings beat, Alcatel's shares notched yet another major gain.

The road ahead for Alcatel
Alcatel's progress has been hard to ignore under new leader Michel Combes.

Alcatel Lucent Logo

Source: Alcatel Lucent

The key driver in directing Alcatel Lucent's turnaround has been Combes' Shift plan. Under the Shift plan, Alcatel will make a concerted push to become a more efficient company by eliminating unprofitable contracts, asset divestitures, and doing employee layoffs through 2015.

However, going forward, the long-term competitive dynamic in Alcatel's industry remains somewhat tenuous. Unfortunately, Alcatel operates in an industry that favors larger competitors like Ericsson and Huawei. On the other hand, Alcatel's more efficient business should enable it to challenge the larger player in its industry, as well.

What should investors make of Alcatel's prospects in the years ahead? In the video below, tech and telecom analyst Andrew Tonner weighs in on Alcatel's likely course going forward, and what it could mean for investors.

This stock could blow Alcatel out of the water in 2014
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report, "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Andrew Tonner has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers