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Are the Bears Closing in on Telecom Stocks?

PART:
1 2 3 4 5 6
Part 5
Are the Bears Closing in on Telecom Stocks? PART 5 OF 6

Where Frontier Communications Stock Stands amid the Recent Stock Market Fall

Frontier stock down over 17.6%

Frontier Communications (FTR) stock was trading at $6.81 by the end of February 9, 2018, which represents a fall of ~17.6% from its closing price on January 26. Frontier is now trading ~12.0% above its 52-week low of $6.08 and ~86.7% below its 52-week high of $51.30.

This telecom company’s stock price has fallen ~13.1% in the trailing-five-day period as of February 9.Where Frontier Communications Stock Stands amid the Recent Stock Market Fall

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Frontier’s recent price fall has meant that it’s now trading below its moving averages. The stock is trading ~25.3% below its 100-day moving average of $9.12, ~14.7% below its 50-day moving average of $7.98, and ~13.4% below its 20-day moving average of $7.86.

Frontier’s stock decline means that it’s now closer to oversold territory, with a 14-day RSI (relative strength index) score of 17. Remember, when a stock’s RSI falls below 30, it’s said to be trading in the “oversold” zone. When its RSI goes above 70, the stock is said to be trading in the “overbought” zone.

Frontier trading at a discount of 25% to median target estimates

The recent sell-off also means that Frontier will now be trading at a discount to the analysts’ median estimate. Of the 16 analysts tracking Frontier, only four have recommended a “buy,” while seven have recommended a “hold” for the stock. Five analysts have recommended a “sell” on the stock.

The average 12-month target price for Frontier is now $12.43, with a median target of $8.50. The stock is thus trading at a discount of ~24.8% to median estimates.

Frontier’s scale

As of February 9, 2018, AT&T (T) was the largest US telecom player by market capitalization ~$221.3 billion, followed by Verizon Communications (VZ) at ~$203.5 billion.

In the US wireline space, Frontier Communications had a market capitalization of ~$0.5 billion. CenturyLink’s (CTL) and Windstream’s (WIN) market capitalizations were ~$17.1 billion and ~$0.3 billion, respectively, as of February 9, 2018.

Continue to the next and final part of this series for a summary of where these US telecommunications players stand so far in February 2018. 

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