uploads/2015/12/Telecommunication.png

Analyzing FEZ’s Telecommunication Industry in 2015

By

Updated

Telecommunication industry

The SPDR Euro Stoxx 50 ETF’s (FEZ) telecommunication industry provided a 5% return in 2015. Telecommunication stocks like Orange (ORAN), Telefonica (TEF), and Deutsche Telekom returned 8%, -12.5%, and 25%, in 2015.

Orange and Deutsche Telekom’s positive performances were taken away by Telefonica’s negative performance. Telefonica is a Spain-based telecom company. Due to the poor earnings in the last two quarters, the stock had a negative performance. Recently, Morgan Stanley (MS) downgraded the stock from “neutral” to “underweight.”

Article continues below advertisement

Moving averages

Orange is trading 3% above its 100-day moving average, at par with its 20-day moving average, and 3% below its 50-day moving average. The 50-day moving average is a strong resistance point for the stock. In the last four months, the stock struggled to cross its 50-day moving average. Deutsche Telekom is also trading 3% above its 100-day moving average, at par with its 20-day moving average, and 1% below its 50-day moving average.

Telefonica is trading 12%, 10%, and 6% below its 100-day, 50-day, and 20-day moving averages. The 100-day moving average is a strong resistance point for the stock. It struggled to cross its 100-day moving average in the last six months.

Analysts’ estimates

Analysts’ estimates suggest upsides of 22%, 7%, and 5% for Telefonica, Orange, and Deutsche Telekom over the next 12-month period from their current levels as of December 29, 2015.

In the next part of this series, we’ll analyze the performance of the Eurozone’s (HEDJ) pharmaceutical industry.

Advertisement

More From Market Realist