Telefonica, S.A. (TEF)

Millicom reported Q2 2025 revenue of $1.37 billion, record adjusted EBITDA of $641 million, and net profit of $676 million. The company completed a partial infrastructure transaction with SBA, generating over $500 million in proceeds and announced a $2.50 per share interim dividend.

Millicom, a leading provider of telecommunications services in Latin America, has signed an agreement to acquire Telefónica's operations in Ecuador for $380 million. This acquisition strengthens Millicom's strategic position and operating scale in the region, enhancing its geographic diversification and growth potential.

AST SpaceMobile, a satellite network provider, has gained investor excitement for its plans to build a space-based broadband cellular network. However, the company still has a long way to go before it can offer a full-fledged service, requiring significant capital expenditure. While the long-term opportunity seems promising, the short-term challenges may lead to volatility in the stock price.

The article highlights three stocks with a Zacks Rank #1 (Strong Buy) and strong income characteristics: Telefónica, S.A., Kinross Gold Corporation, and Wal-Mart de México, S.A.B. de C.V. These companies have seen their earnings estimates increase in the last 60 days and offer attractive dividend yields compared to their respective industries.

Morgan Stanley upgraded Telefonica's stock rating to Overweight, citing the company's defensive business model, improving free cash flow, and attractive valuation compared to peers. The firm set a new price target of $11, suggesting a 26% upside potential.