Back to top

Analyst Blog

Vodafone Group plc (VOD - Analyst Report) is reportedly working toward generating employment in the U.K. with its plan to open additional 150 shops and create 1,400 jobs in the country. While the news is likely to bear a positive impact on the U.K. economy, it also points to the company’s efforts of strengthening its market position in the home ground and making strategic investments in European markets.

According to the company, the expansion is in sync with this year’s plan to invest £1 billion ($1.66 billion) in the U.K., where it has 19 million customers. The opening of new shops will bring Vodafone’s total retail outlet count to over 500. The company currently serves as the third large telecom operator in the country preceded by Orange (ORAN - Analyst Report) and Deutsche Telekom joint venture EE and Telefonica’s (TEF - Analyst Report) O2.

Apart from the U.K., Vodafone remains focused on expanding its business across other European countries. In Sep 2013, the company acquired a 76.48% stake in Kabel Deutschland for €7.7 billion ($10.21 billion). In the same month, the company also announced plans to buy Verizon's (VZ - Analyst Report) stakes in Vodafone Italia, which is around (23.14%), for $3.5 billion.

Moreover, the company struck a wholesale agreement with Deutsche Telecom for offering high-speed fixed-line broadband and Internet protocol-based TV services across Germany.

In Spain, the company is gaining from its tie-in with Orange and has also entered into a vertical access agreement with Telefonica for accessing the fiber optic network. In Greece, Vodafone entered into an active 2G and 3G network sharing agreement covering rural and urban areas. In Portugal, the company has started the extension of its fiber-to-the-home program, targeting to double the number of homes covered to approximately 1 million.

Vodafone currently has a Zacks Rank #5 (Strong Sell).

Other Stocks

Better-ranked stocks in this sector include SK Telecom Co. Ltd. (SKM - Analyst Report), which has a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
QIHOO 360 T… QIHU 95.04 +4.95%
PILGRIMS PR… PPC 31.52 +3.72%
WILLIAMS(C)… CWEI 138.97 +3.55%
FLAMEL TECH… FLML 14.02 +3.16%
CALLON PETE… CPE 11.50 +3.14%