3 Telecom Stocks Set To Beat Estimates This Earnings Season
Zacks Investment Research | Jul 26, 2017 02:41AM ET
Telecom service provider stocks have not performed well in the second quarter of 2017. The industry has declined 3.09%, underperforming the S&P 500’s rally of 16.53%. Several near-term headwinds continue to persist. The chief ones include growing price competition for wireless services, which are likely to reduce carriers' revenue growth in 2017. Leading cable MSOs (multi service operators) have decided to enter the wireless field in 2017. This is likely to intensify competition in an already saturated market. Furthermore, capital spending by the U.S. telecom carriers may be muted in 2017.
On the positive side, the new U.S. telecom regulatory body – Federal Communications Commission (FCC) – has given enough indications that it will be less stringent compared with the Obama administration. It is also likely to roll back several stringent regulations of the previous regime. The lesser restrictive nature of the FCC will aid mergers and acquisitions, which are likely to spur growth in 2017.
Performance So Far
Per the latest Earnings ESP Filter .
Our choices
With the aid of the above methodology, we have zeroed in on three telecom stocks that are likely to beat the Zacks Consensus Estimate this earnings season.
SBA Communications Corp. (CMCSA ) has an Earnings ESP of +2.08% and carries a Zacks Rank #3. The company is scheduled to report results on Jul, 27. It has an average positive earnings surprise of 5.11% in the last four quarters and a long-term earnings growth rate of 9.1%.
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