Telecom Argentina Stock Investment Opportunity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: NASDAQ.COM
- Price Uptrend: Telecom Argentina (TEO) has seen a 14.6% price increase over the past four weeks, reflecting growing investor interest and enhancing its market appeal and potential returns.
- Long-Term Return Potential: With a 22.1% price gain over the last 12 weeks, TEO demonstrates sustained momentum characteristics, providing investors with the potential for longer-term positive returns, thereby increasing its investment attractiveness.
- Momentum Score Advantage: TEO currently holds a Momentum Score of B, and its strong upward revisions in earnings estimates have earned it a Zacks Rank #1 (Strong Buy), indicating a higher probability of success for investing in this stock in the current market environment.
- Reasonable Valuation Level: TEO's price-to-sales ratio stands at 0.89, meaning investors pay only 89 cents for every dollar of sales, showcasing a solid value investment opportunity while experiencing rapid growth.
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Analyst Views on TEO
Wall Street analysts forecast TEO stock price to fall
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 13.810
Low
9.00
Averages
10.00
High
11.00
Current: 13.810
Low
9.00
Averages
10.00
High
11.00
About TEO
Telecom Argentina S.A. provides fixed-line telecommunications services in Argentina, and also provides other telephone-related services, such as international long-distance service, data transmission, information technology solutions outsourcing and Internet services. The Company's segments include Fixed Telecommunications Services (Fixed Services), Personal Mobile Telecommunications Services (Personal Mobile Services) and Nucleo Mobile Telecommunications Services (Nucleo Mobile Services). The Company, through its subsidiaries, also provides mobile telecommunications services and international wholesale services. The Fixed services segment consists of basic telephone services, interconnection services, data transmission and Internet services, information and communication technology services, and other telephone services. The Company, through its subsidiaries, such as Telecom Personal S.A. and Nucleo S.A., provides mobile services in Argentina and Paraguay, respectively.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Telecom Argentina Stock Investment Opportunity
- Price Uptrend: Telecom Argentina (TEO) has seen a 14.6% price increase over the past four weeks, reflecting growing investor interest and enhancing its market appeal and potential returns.
- Long-Term Return Potential: With a 22.1% price gain over the last 12 weeks, TEO demonstrates sustained momentum characteristics, providing investors with the potential for longer-term positive returns, thereby increasing its investment attractiveness.
- Momentum Score Advantage: TEO currently holds a Momentum Score of B, and its strong upward revisions in earnings estimates have earned it a Zacks Rank #1 (Strong Buy), indicating a higher probability of success for investing in this stock in the current market environment.
- Reasonable Valuation Level: TEO's price-to-sales ratio stands at 0.89, meaning investors pay only 89 cents for every dollar of sales, showcasing a solid value investment opportunity while experiencing rapid growth.
See More
Telecom Argentina Reports 34% Revenue Growth in Q1
- Significant Revenue Growth: Telecom Argentina reported consolidated revenues exceeding $1.7 billion in Q1 2026, marking a 34% year-over-year increase primarily driven by the full contribution from TMA, indicating successful acquisition and strong market demand.
- Improved EBITDA Margin: The company's EBITDA margin improved to 34.8% in Q1, with standalone Telecom reaching over 38%, the highest since the merger with Cablevision in 2018, reflecting significant operational efficiency improvements.
- Increased Network Investment: Capital expenditures for fiber-to-the-home and 5G infrastructure amounted to approximately $0.3 billion, upgrading nearly 780 existing sites and adding over 210 new 5G sites, which will enhance network quality and support data consumption growth.
- Debt Leverage Improvement: The net debt to EBITDA leverage ratio improved from 1.7 times last year to 1.4 times, demonstrating enhanced cash generation capabilities and a higher EBITDA base, which helps reduce refinancing risk and maintain a strong balance sheet.
See More
Telecom Argentina Reports 30.5% Revenue Growth in Q1
- Significant Revenue Growth: Telecom Argentina reported Q1 revenue of P$2,357.69 billion, reflecting a robust 30.5% year-over-year increase, indicating strong market performance and sustained customer demand.
- Substantial Net Income Increase: The consolidated net income for Q1 2026 reached P$642,984 million, a dramatic rise from P$123,593 million in Q1 2025, showcasing a significant improvement in the company's profitability.
- Increased Capital Expenditure: The company’s capital expenditures totaled P$433,768 million in Q1, marking an 85.1% increase year-over-year and representing 18.4% of total revenues, highlighting ongoing investments in infrastructure and technology to support future growth.
- Reduction in Financial Debt: As of March 31, 2026, Telecom Argentina's consolidated net financial debt stood at P$4,296,790 million, reflecting a 15.6% decrease in real terms compared to December 31, 2025, indicating improved financial management and stability.
See More
Latest Wall Street Rating Updates
- Starbucks Rating Maintained: Morgan Stanley reiterates its overweight rating on Starbucks, indicating that the ongoing debate about the company's earnings power reflects an improving narrative that may attract more investor interest.
- Robinhood Outlook Positive: Bernstein maintains an outperform rating on Robinhood, noting that HOOD stock marked a bottom in Q1 and has started strong in April, suggesting increasing market confidence in its future.
- CoreWeave Price Target Raised: Wells Fargo raises CoreWeave's price target from $125 to $135, believing that the company's leading position in AI infrastructure will allow it to benefit as demand continues to outpace supply.
- Telecom Argentina Upgrade: JPMorgan upgrades Telecom Argentina from neutral to overweight, expecting substantial benefits from market consolidation as the antitrust review of its acquisition of Telefonica Argentina nears completion.
See More
Telecom Argentina Reports Strong 2025 Earnings Highlights
- Significant Revenue Growth: Telecom Argentina reported consolidated revenues exceeding $5.7 billion for 2025, marking a 53% year-over-year increase in constant Argentine pesos, primarily driven by the acquisition of Telefonica Moviles Argentina, showcasing the company's strong market performance.
- Improved EBITDA Margin: The EBITDA margin for fiscal year 2025 improved to over 30.3%, with potential growth to over 32% when excluding severance charges from TMA, reflecting the company's ongoing efforts in cost control and operational efficiency.
- Substantial Capital Expenditure Increase: The company allocated approximately $1.0 billion in capital expenditures for 2025, an 88% increase from the previous year, primarily aimed at expanding its fiber-to-home and 5G infrastructure, which is essential for enhancing network quality and reinforcing long-term competitiveness.
- Decline in Mobile Subscribers: Despite overall revenue growth, Telecom Argentina recorded a net loss of approximately ARS 145 million in 2025, primarily due to a 10.7% decrease in mobile subscribers, particularly in the prepaid segment, indicating pressure from market competition.
See More
Telecom Argentina Reports FY Net Loss of P$145.3 Billion
- Fiscal Year Net Loss: Telecom Argentina reported a consolidated net loss of P$145.3 billion for the fiscal year, a stark contrast to the net income of P$1,359.2 billion in FY24, indicating a significant deterioration in financial health that could undermine investor confidence.
- Revenue Growth: Despite the losses, the company achieved revenues of P$832.81 billion, reflecting a robust year-over-year growth of 53.0%, suggesting strong market demand that may lay the groundwork for future recovery.
- Increased Capital Expenditure: The consolidated CAPEX reached P$1,485.577 billion, up 98.3% year-over-year, representing 17.8% of total revenues, an increase from 13.8% in FY24, demonstrating the company's commitment to infrastructure development.
- Risk Assessment: While the business shows signs of improvement, analysts caution that Telecom Argentina remains too risky for investment, which may affect its stock performance, necessitating careful evaluation of its future financial stability.
See More
Telecom Argentina Stock Investment Opportunity
- Price Uptrend: Telecom Argentina (TEO) has seen a 14.6% price increase over the past four weeks, reflecting growing investor interest and enhancing its market appeal and potential returns.
- Long-Term Return Potential: With a 22.1% price gain over the last 12 weeks, TEO demonstrates sustained momentum characteristics, providing investors with the potential for longer-term positive returns, thereby increasing its investment attractiveness.
- Momentum Score Advantage: TEO currently holds a Momentum Score of B, and its strong upward revisions in earnings estimates have earned it a Zacks Rank #1 (Strong Buy), indicating a higher probability of success for investing in this stock in the current market environment.
- Reasonable Valuation Level: TEO's price-to-sales ratio stands at 0.89, meaning investors pay only 89 cents for every dollar of sales, showcasing a solid value investment opportunity while experiencing rapid growth.
See More
Telecom Argentina Reports 34% Revenue Growth in Q1
- Significant Revenue Growth: Telecom Argentina reported consolidated revenues exceeding $1.7 billion in Q1 2026, marking a 34% year-over-year increase primarily driven by the full contribution from TMA, indicating successful acquisition and strong market demand.
- Improved EBITDA Margin: The company's EBITDA margin improved to 34.8% in Q1, with standalone Telecom reaching over 38%, the highest since the merger with Cablevision in 2018, reflecting significant operational efficiency improvements.
- Increased Network Investment: Capital expenditures for fiber-to-the-home and 5G infrastructure amounted to approximately $0.3 billion, upgrading nearly 780 existing sites and adding over 210 new 5G sites, which will enhance network quality and support data consumption growth.
- Debt Leverage Improvement: The net debt to EBITDA leverage ratio improved from 1.7 times last year to 1.4 times, demonstrating enhanced cash generation capabilities and a higher EBITDA base, which helps reduce refinancing risk and maintain a strong balance sheet.
See More
Telecom Argentina Reports 30.5% Revenue Growth in Q1
- Significant Revenue Growth: Telecom Argentina reported Q1 revenue of P$2,357.69 billion, reflecting a robust 30.5% year-over-year increase, indicating strong market performance and sustained customer demand.
- Substantial Net Income Increase: The consolidated net income for Q1 2026 reached P$642,984 million, a dramatic rise from P$123,593 million in Q1 2025, showcasing a significant improvement in the company's profitability.
- Increased Capital Expenditure: The company’s capital expenditures totaled P$433,768 million in Q1, marking an 85.1% increase year-over-year and representing 18.4% of total revenues, highlighting ongoing investments in infrastructure and technology to support future growth.
- Reduction in Financial Debt: As of March 31, 2026, Telecom Argentina's consolidated net financial debt stood at P$4,296,790 million, reflecting a 15.6% decrease in real terms compared to December 31, 2025, indicating improved financial management and stability.
See More
Latest Wall Street Rating Updates
- Starbucks Rating Maintained: Morgan Stanley reiterates its overweight rating on Starbucks, indicating that the ongoing debate about the company's earnings power reflects an improving narrative that may attract more investor interest.
- Robinhood Outlook Positive: Bernstein maintains an outperform rating on Robinhood, noting that HOOD stock marked a bottom in Q1 and has started strong in April, suggesting increasing market confidence in its future.
- CoreWeave Price Target Raised: Wells Fargo raises CoreWeave's price target from $125 to $135, believing that the company's leading position in AI infrastructure will allow it to benefit as demand continues to outpace supply.
- Telecom Argentina Upgrade: JPMorgan upgrades Telecom Argentina from neutral to overweight, expecting substantial benefits from market consolidation as the antitrust review of its acquisition of Telefonica Argentina nears completion.
See More
Telecom Argentina Reports Strong 2025 Earnings Highlights
- Significant Revenue Growth: Telecom Argentina reported consolidated revenues exceeding $5.7 billion for 2025, marking a 53% year-over-year increase in constant Argentine pesos, primarily driven by the acquisition of Telefonica Moviles Argentina, showcasing the company's strong market performance.
- Improved EBITDA Margin: The EBITDA margin for fiscal year 2025 improved to over 30.3%, with potential growth to over 32% when excluding severance charges from TMA, reflecting the company's ongoing efforts in cost control and operational efficiency.
- Substantial Capital Expenditure Increase: The company allocated approximately $1.0 billion in capital expenditures for 2025, an 88% increase from the previous year, primarily aimed at expanding its fiber-to-home and 5G infrastructure, which is essential for enhancing network quality and reinforcing long-term competitiveness.
- Decline in Mobile Subscribers: Despite overall revenue growth, Telecom Argentina recorded a net loss of approximately ARS 145 million in 2025, primarily due to a 10.7% decrease in mobile subscribers, particularly in the prepaid segment, indicating pressure from market competition.
See More
Telecom Argentina Reports FY Net Loss of P$145.3 Billion
- Fiscal Year Net Loss: Telecom Argentina reported a consolidated net loss of P$145.3 billion for the fiscal year, a stark contrast to the net income of P$1,359.2 billion in FY24, indicating a significant deterioration in financial health that could undermine investor confidence.
- Revenue Growth: Despite the losses, the company achieved revenues of P$832.81 billion, reflecting a robust year-over-year growth of 53.0%, suggesting strong market demand that may lay the groundwork for future recovery.
- Increased Capital Expenditure: The consolidated CAPEX reached P$1,485.577 billion, up 98.3% year-over-year, representing 17.8% of total revenues, an increase from 13.8% in FY24, demonstrating the company's commitment to infrastructure development.
- Risk Assessment: While the business shows signs of improvement, analysts caution that Telecom Argentina remains too risky for investment, which may affect its stock performance, necessitating careful evaluation of its future financial stability.
See More
