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According to the data from AJ Bell including Harclaves LansdownUK investors have been busy beating for shares of Vodafone (Lese: VOD). Indeed, this was the most purchased FTSE 100 stock in both platforms last week (based on the number of customers installed).
Should I follow the crowd and invest? Here’s my thoughts.
Harassment
Making my decision, I will look at a few important things. The first is Share Price Trend.
Now, this is not something that sells one manner or the other. But it tells me that investors have been financially, not taking, or neutral in the cell.
Last year, Vodafone shares have been basic compared to the increase in FTS 100’s 13%. Over five years, Vodafone stock is less than 57%.
I see a few obvious reasons why investors continue to find out here.
First, Vodafone had never grown. Revenue was € 43.6bn on FY 2019, but only € 36.7bn Kufy 2024 (March). Looking forward to FY 2026, the top line is expected to grow to € 38.1BN.
Admittedly, the company has been actively violating the money producing clothing that should be accompanied by working and focusing on important markets. But the truth lasts that perfect growth has been disappointed.
Also, this does not go to me to me. I have shares of Legal & General including British American cigarettes In revenue, although they have always put fire on the world in terms of growth.
However, both companies have a great history for expanding their payment. In contrast, Vodafone distribution by each share is from 9.24 Euro Cents per share in 2019 to Forecast 5.3 in 2025. That is expected to fall into 5.1 cents.
While that puts the yield to break up on top 6%, income hopes are really tempting.
Finally, there is a debt-free issue. The construction infrastructure and operating system is the broadest. At the end of September, the Net debt was hens € 31.8bn.
Whether that sum is lower from € 33.2BN on March 2024, decrease was mainly held by {4.1bn Vodafone Spain Sale.
Some good pieces
So why investors were buying in Masse stocks? It is about the relation to the 3rd compilation in December.
This will create a large phone operator of the UK Phone, about 27m subscribers, as well as the program for one of the most advanced networks of 5G. The new leadership team was announced last week to have a combined future.
Perhaps these investors turn to tricky after the latest Q3 company results. The income increases the year 5% in a year to € 9.8bn, for a strong growth in Africa. And Mammoth € 2bn is set for returns after allies after the sale of € 8Bn Vodafone Italy.
In the meantime, stock continues to look at the cheapest, trading at 10 times. Therefore, it seems that there is a large amount of supply, at least on paper.
Should i plant money?
Another concern I have, however, that the income set it in the wrong marketplace in the German vodafone market.
At that time, it is committed to planting £ 11bn to build 5G in the UK. It would be a while before the benefits of such a great way.
To measure things up, I will give this amount of missing stock.
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