Price performance of Frontier
In the last part of the series, we looked at some aspects of Frontier Communications’ (FTR) value propositions in the US telecom space. We looked at the scale, forward dividend yields, and valuation multiples of Frontier as well as of some of its peers. In this part, we’ll look at some market-centric metrics and views for the wireline telecom player. Let’s start with the telecom player’s price performance.
As of March 28, 2016, Frontier’s stock price has fallen ~2% in one month. Over the past three months, it has risen ~10% as of the same date.
Wall Street’s view of Frontier
Now let’s look at Wall Street’s view of Frontier stock. As we can see in the above pie chart, 72.2% of analysts have recommended a “buy” as of March 28, 2016. About 22.2% of analysts have recommended a “hold,” and the remaining 5.6% have recommended a “sell.”
Analysts’ average target price for Frontier stock was $6.15 as of March 28, 2016. It’s worth noting that Frontier’s closing price was $5.30 on the same date.
Instead of taking direct exposure to the stocks of players in the US wireline market, you may consider taking a diversified exposure to the space by investing in the SPDR S&P 500 ETF (SPY). It held a total of ~2.4% in AT&T (T), Verizon (VZ), CenturyLink (CTL), Frontier Communications (FTR), and Level 3 Communications (LVLT) at the end of December 2015.