Telecom stocks have traditionally been high-yielding defensive plays. Among these, CenturyLink stands out as a cheaply-valued stock that investors should definitely buy.
2. Centurylink Inc. (CTL) is the third largest
telecommunications company in the United
States and is considered to be a leader in the
Network Service market. The company leads
globally in Cloud infrastructure and also hosts
IT solutions for Enterprise customers.
3. Century links local and long distance
voice Communication is POTS. The data is
communicated through DSL, Metro Ethernet,
MPLS, ATM and Frame Relay over Fiber
optics.
4. CTL’s shareholders are not happy with the
company since it recently announced a dividend
cut of 26%. As a result the stock price plunged.
Centurylink allocated the money on share
buybacks.
5. Centurylink stock price has appreciated
1.7% since the start of 2014 and analysts
expect mean target of $32.75 in the coming 12
months. Centurylink stock can appreciate in
the coming months due to the share buyback
program. The company has also beaten EPS
estimates by 15.4% in the last quarter.