TEF

Value Investing Strategy: In times of market volatility, investors often turn to value investing, seizing opportunities to buy undervalued stocks as others sell at lower prices. However, this strategy can lead to "value traps" if not understood properly.

Importance of PEG Ratio: The PEG ratio, which considers earnings growth potential, is a crucial metric for value investors to assess a stock's intrinsic value, complementing traditional measures like P/E and P/B ratios.

Screening Criteria for Stocks: Successful value investing involves specific criteria, including a PEG ratio below the industry median, a strong Zacks Rank, and significant market capitalization, which help identify promising stocks.

Highlighted Stocks: Four stocks that meet these criteria include Allstate Corporation, Telefonica S.A., Enersys, and Commercial Metals Co., each demonstrating strong growth potential and favorable value scores.

Partnership with Nokia: Telefonica has extended its partnership with Nokia for five years to modernize its radio access network in Germany, enhancing its 5G rollout and supporting sustainable digitalization through advanced technologies like Cloud RAN and AI-driven network intelligence.

5G Network Expansion: Telefonica has launched its 5G network in Spain, covering nearly 94% of the population, and has also introduced 5G+ in multiple countries, while securing long-term contracts to stabilize its business and enhance infrastructure quality.

Financial Outlook: For 2025, Telefonica anticipates organic growth in revenues and EBITDA, aims to keep capital expenditures below 12.5% of sales, and plans to maintain free cash flow and reduce debt.

Technological Advancements: Telefonica, Nokia, and the Polytechnic University of Valencia are collaborating on a pilot project using the upper 6 GHz band to advance mobile communications, which is seen as crucial for future connectivity and digital services in Europe.