U.S. stocks rise on Fed cut bets; earnings continue to flow
In a remarkable display of market resilience, VEON Ltd. (NASDAQ: NASDAQ:VEON) stock has surged to a 52-week high, reaching a price level of $28.46. This significant milestone reflects a robust year-over-year growth, with the company's stock value witnessing an impressive 62.54% increase over the past year. Investors have shown increased confidence in VEON's strategic initiatives and market position, propelling the stock to new heights amidst a dynamic and challenging economic landscape. The telecommunications giant's performance is particularly noteworthy as it navigates through the competitive industry, signaling potential for continued growth and investor interest.
In other recent news, VEON has reported substantial growth in Q2 2024, with a robust 12.1% increase in U.S. dollar revenues and a 10.6% rise in Group EBITDA. The company's digital strategy and 4G network expansion have paid off, driving a significant increase in local currency revenues and digital revenue streams. VEON's operating companies in Ukraine, Pakistan, Kazakhstan, and Bangladesh have all reported growth. The company's liquidity remains healthy, with a cash reserve of $722 million and no significant debt maturities in 2024.
VEON anticipates continued revenue growth of 16-18% and EBITDA growth of 18-20% for the full year of 2024. Despite facing a cyber-attack in Ukraine and tensions in Bangladesh, the company has shown resilience with strong performance in the digital services sector and 4G network penetration. These recent developments underscore VEON's ability to navigate market challenges while capitalizing on growth opportunities.
InvestingPro Insights
In light of VEON Ltd.'s recent stock performance, InvestingPro data offers valuable insights into the company's financial health and market position. With a current market capitalization of $73.66 million, VEON presents a compelling case for investors looking at telecommunications stocks. The company's revenue has shown a healthy growth of 6.5% over the last twelve months as of Q2 2024, coupled with a substantial gross profit margin of 102.79%. This financial robustness is complemented by an adjusted operating income of $966 million, reflecting a strong operating income margin of 24.99%.
VEON's stock price movements have been quite volatile, yet the company has managed a high return over the last year, with a year-to-date price total return of 44.16%. This is further substantiated by a 63.31% increase in the one-year price total return, indicating a large price uptick over the last six months. Analysts are optimistic about VEON's future, predicting profitability this year, which is supported by the company's recent profitable performance over the last twelve months. It's worth noting that VEON does not pay a dividend, which may be a consideration for income-focused investors. For those interested in a deeper analysis, there are additional InvestingPro Tips available, providing a more comprehensive understanding of VEON's investment potential.
With a price nearly reaching its 52-week high, currently at 99.47% of that peak, and a fair value estimation by analysts at $40, compared to InvestingPro's fair value of $37.1, VEON is trading at levels that suggest investor sentiment is bullish. The next earnings date set for November 14, 2024, will be a critical event for investors to watch. For more insights and tips on VEON, including those not covered here, investors can visit InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.