October 12, 2023
Top 10 Stock Shenandoah Telecommunications Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Shenandoah Telecommunications Buy

360 METRICS	October 12, 2023
VALUE
VALUE	24
GROWTH
GROWTH	100
SAFETY
SAFETY	90
SENTIMENT
SENTIMENT	18
360° VIEW
360° VIEW	70

ANALYSIS: With an Obermatt 360° View of 70 (better than 70% compared with alternatives), overall professional sentiment and financial characteristics for the stock Shenandoah Telecommunications are above average. The 360° View is based on consolidating four consolidated indicators, with half of the metrics below and half above average for Shenandoah Telecommunications. The consolidated Growth Rank has a good rank of 100, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. This means that growth is higher than for 100% of competitors in the same industry. In addition, the consolidated Safety Rank has a safer rank of 90 which means that the company has a financing structure that is safer than 90% comparable companies when looking at the amount of its debt, its refinancing requirements, and its ability to service debt. But the consolidated Value Rank has a less desirable rank of 24 which means that the share price of Shenandoah Telecommunications is on the higher side compared with typical size in indicators such as revenues, profits, and invested capital. This means that the stock price is higher than for 76% of alternative stocks in the same industry. The consolidated Sentiment Rank also has a low rank of 18, which means that professional investors are more pessimistic about the stock than for 82% of alternative investment opportunities. ...read more

RECOMMENDATION: With a consolidated 360° View of 70, Shenandoah Telecommunications is better positioned than 70% of all alternative stock investment opportunities based on the Obermatt Method. As only half of the consolidated Obermatt Ranks exhibit excellent performance, the picture is ambiguous. Growth is above-average (Growth Rank of 100), and the company is safely financed (Safety Rank of 90). However, professional market sentiment is low(Sentiment Rank of 18). The negative market view on Shenandoah Telecommunications may be due to the high stock price (low value). A growth company like this may get too expensive at one point in time. If too many investors are desperate to board the train, they may drive stock prices above reasonable levels. It is typical for growth companies to have low value ratings, because investors are willing to pay more for companies that outperform their competitors. So the question is, how much more do you pay for the stock of Shenandoah Telecommunications compared with alternatives? You can use the following rule of thumb: The value rank shouldn’t be lower than one hundred minus the growth rank. For example, if the growth rank is at 75, and the value rank is at 5, you should tread carefully. If the value rank is at 40, it still might be a good value if the value rank is above 60. As market sentiment is low, you should be careful with paying more than market-average for this stock and conduct further research into the company’s future growth potential. ...read more

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Sentiment Strategy: Professional Market Sentiment for Shenandoah Telecommunications negative

SENTIMENT METRICS	October 12, 2023
ANALYST OPINION
ANALYST OPINION	17
OPINIONS CHANGE
OPINIONS CHANGE	50
PRO HOLDINGS
PRO HOLDINGS	39
MARKET PULSE
MARKET PULSE	34
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	18

ANALYSIS: With an Obermatt Sentiment Rank of 18 (better than 18% compared with alternatives), overall professional sentiment and engagement for the stock Shenandoah Telecommunications is critical, mostly below average. The Sentiment Rank is based on consolidating four sentiment indicators, with three out of four metrics below average for Shenandoah Telecommunications. Analyst Opinions are at a rank of 17 (worse than 83% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 50, which means that stock research experts have found something to make them more positive about investing in the company. In other words, they are getting more optimistic of stock investments in Shenandoah Telecommunications. But the Professional Investors rank is low at 39, which means that professional investors hold less stock in this company than in 61% of alternative investment opportunities. Pros tend to invest in other companies. Market Pulse is also low at a rank of 34, which means that the current professional news and professional social networks tend to be negative when discussing this company (more negative news than for 66% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 18 (less encouraging than 82% compared with investment alternatives), Shenandoah Telecommunications has a reputation among professional investors that is far below that of its competitors. These are quite a few negative sentiment signals. One may want to trust the analysts that are changing their opinions. They may be early indications of better times, especially if the company is a smaller one. But If they are an extra large company, they should have more professional stockholders than are currently present. ...read more

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Value Strategy: Shenandoah Telecommunications Stock Price Value low

VALUE METRICS	October 12, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	11
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	7
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	43
DIVIDEND YIELD
DIVIDEND YIELD	34
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	24

ANALYSIS: With an Obermatt Value Rank of 24 (worse than 76% compared with alternatives), Shenandoah Telecommunications shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Shenandoah Telecommunications. Price-to-Sales is 11 which means that the stock price compared with what market professionals expect for future profits is higher than 89% of comparable companies, indicating a low value concerning Shenandoah Telecommunications's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 43, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Shenandoah Telecommunications. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 7 and Dividend Yield, which is lower than 66% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 24, is a sell recommendation based on Shenandoah Telecommunications's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Shenandoah Telecommunications? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Shenandoah Telecommunications? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Shenandoah Telecommunications may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. ...read more

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Growth Strategy: Shenandoah Telecommunications Growth Momentum high

GROWTH METRICS	October 12, 2023
REVENUE GROWTH
REVENUE GROWTH	54
PROFIT GROWTH
PROFIT GROWTH	96
CAPITAL GROWTH
CAPITAL GROWTH	89
STOCK RETURNS
STOCK RETURNS	77
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	100

ANALYSIS: With an Obermatt Growth Rank of 100 (better than 100% compared with alternatives) for 2023, Shenandoah Telecommunications shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Shenandoah Telecommunications. Sales Growth has a value of 54, which means that, currently, professionals expect the company to grow more than 54% of its competitors. The same is valid for Profit Growth with a value of 96 and for Capital Growth with 89. In addition, Stock Returns had an above-average rank value of 77, which means they have been higher than 77% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 100, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Shenandoah Telecommunications exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. ...read more

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Safety Strategy: Shenandoah Telecommunications Debt Financing Safety very solid

SAFETY METRICS	October 12, 2023
LEVERAGE
LEVERAGE	90
REFINANCING
REFINANCING	34
LIQUIDITY
LIQUIDITY	88
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	90

ANALYSIS: With an Obermatt Safety Rank of 90 (better than 90% compared with alternatives) for 2023, the company Shenandoah Telecommunications has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Shenandoah Telecommunications is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Shenandoah Telecommunications. Leverage is at a rank of 90, meaning the company has a below-average debt-to-equity ratio. It has less debt than 90% of its competitors. Liquidity is also good at a rank of 88, meaning the company generates more profit to service its debt than 88% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 34, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 66% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 90 (better than 90% compared with alternatives), Shenandoah Telecommunications has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Shenandoah Telecommunications. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. ...read more

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Combined financial peformance: Shenandoah Telecommunications Top Financial Performance

COMBINED PERFORMANCE	October 12, 2023
VALUE
VALUE	24
GROWTH
GROWTH	100
SAFETY
SAFETY	88
COMBINED
COMBINED	90

ANALYSIS: With an Obermatt Combined Rank of 90 (better than 90% compared with investment alternatives), Shenandoah Telecommunications (Wireless Telecommunication, USA) shares have much better financial characteristics than comparable stocks. Shares of Shenandoah Telecommunications are low in value (priced high) with a consolidated Value Rank of 24 (worse than 76% of alternatives). But they show above-average growth (Growth Rank of 100) and are safely financed (Safety Rank of 90, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 90, is a strong buy recommendation based on Shenandoah Telecommunications's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Shenandoah Telecommunications exhibits low value (Obermatt Value Rank of 24), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 100). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 90) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). ...read more

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