Wall Street’s view on Sprint
In the previous part of this series, we got a glimpse of Sprint’s (S) proposition in the telecom space in the United States. We looked at the forward valuation multiples of the carrier and its peers. Now, we’ll look Wall Street’s analysts’ view on Sprint.
In the current month, there were two “strong buy,” one “buy,” 18 “hold,” three “underperform,” and five “sell” recommendations for Sprint. Three months back, Sprint had two “strong buy,” two “buy,” 17 “hold,” three “underperform,” and five “sell” recommendations.
Wall Street’s analysts’ median target price for Sprint was ~$7 on December 23, 2015, and the prices of these analysts ranged from ~$6 to ~$9. Sprint’s stock price closed at $3.92 on the same date.
Sprint’s price performance
Now let’s look at the price performance of Sprint and some of its peers. As of December 23, 2015, the decrease in the carrier’s stock price for the past 52 weeks was ~9.7%. Meanwhile, the price decline of Verizon’s (VZ) stock during the same period was ~1.9%. T-Mobile’s (TMUS) stock price moved upwards by a solid ~48.5%, and AT&T’s (T) by ~1.8%, as of December 23, 2015.
Instead of direct exposure to the stocks of players in the US telecom industry, you may consider diversified exposure to the space by investing in the Technology Select Sector SPDR ETF (XLK). The ETF held a total of ~10.2% in US telecom companies at the end of October 2015.