Sprint Nextel Corporation (S) Is Still a Buy!

While Verizon has gained almost 32% in its stock price over the last twelve months, and AT&T almost 23%, during the same time, Sprint has more than doubled gaining 129%, and should outperform both Verizon and AT&T again in the next twelve months as a deal with either SoftBank or DISH closes.

While both Verizon and AT&T are good companies, Sprint has more opportunity to grow its stock price as witnessed in valuations. Verizon is trading at a forward PE of 16.56 and AT&T is trading at a forward PE of 14.39, while Sprint is immeasurable because of its losses. Both Verizon and AT&T have a PEG greater than 2 also, which is the line that helps me determine if I should be investing in a stock or not.

S data by YCharts

Sprint is a long-term play that should provide good returns for a long time to come. Once a deal is done with either Softbank or Dish, I can see Sprint being worth much more by this time in 2014, and continued growth from there.

The article Sprint Is Still a Buy! originally appeared on Fool.com.

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