Telecom Stocks Under Pressure As Toxic Lead Cable Concerns Discourage Buyers: 5 ETFs To Watch
Portfolio Pulse from Piero Cingari
The US telecommunications industry is under pressure following a Wall Street Journal investigation revealing that telecom companies, including AT&T, Verizon, Telephone and Data Systems, and Frontier Communications Parent, neglected over 2,000 decaying lead-containing cables. The news led to a significant drop in the stocks of these companies. The companies defended their practices and are taking steps to address the issue. Five ETFs with high exposure to these telecom stocks are also affected.
July 18, 2023 | 8:36 pm
News sentiment analysis
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NEUTRAL IMPACT
TDS's stock saw a notable recovery after an initial decline due to the lead-cabling controversy.
Despite the initial decline due to the lead-cabling controversy, TDS's stock has shown a notable recovery.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Frontier Communications Parent is also affected by the lead-cabling controversy, but the specific impact on its stock is not mentioned.
The company is mentioned as one of those neglecting the lead-containing cables, which is likely to have a negative impact on its stock.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
iShares Trust – iShares Global Comm Services ETF, with a significant exposure to the affected telecom stocks, is likely to be impacted by the lead-cabling controversy.
The ETF has a high exposure to the telecom stocks affected by the lead-cabling controversy, which is likely to impact its value.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
iShares U.S. Telecommunications ETF, with a significant exposure to the affected telecom stocks, is likely to be impacted by the lead-cabling controversy.
The ETF has a high exposure to the telecom stocks affected by the lead-cabling controversy, which is likely to impact its value.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Invesco S&P 500 Equal Weight Communication Services ETF, with a significant exposure to the affected telecom stocks, is likely to be impacted by the lead-cabling controversy.
The ETF has a high exposure to the telecom stocks affected by the lead-cabling controversy, which is likely to impact its value.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
AT&T's stock dropped to its lowest value since 1993 due to the lead-cabling controversy.
The news about the neglected lead-containing cables has directly impacted AT&T's stock, causing a significant drop in its value.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Vanguard Communication Services ETF, with a significant exposure to the affected telecom stocks, is likely to be impacted by the lead-cabling controversy.
The ETF has a high exposure to the telecom stocks affected by the lead-cabling controversy, which is likely to impact its value.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Verizon's shares experienced a significant decline, hitting their lowest point in over a decade due to the lead-cabling issue.
The lead-cabling controversy has directly affected Verizon's stock, leading to a significant decline in its value.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
SPDR S&P Telecom ETF, with a significant exposure to the affected telecom stocks, is likely to be impacted by the lead-cabling controversy.
The ETF has a high exposure to the telecom stocks affected by the lead-cabling controversy, which is likely to impact its value.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100