Zacks Equity Research

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Zack’s Bear of the Day: VimpelCom

VimpelCom Ltd. (NASDAQ:VIP) is one of the world’s largest integrated telecommunications services operators. It offers a wide range of wireless, fixed, and broadband services in Russia, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, and various countries in Asia and Africa. They even do business in Italy and Canada.

VimpelCom provides services under the Beeline, Kyivstar, djuice, Wind, Infostrada Mobilink, Leo, Banglalink, Telecel, and Djezzy brands. VimpelCom Ltd. is headquartered in Amsterdam, the Netherlands.

But the stock has consistently been a Zacks #4 Rank Sell for the past year as analysts struggle to get a handle on the company’s earnings outlook. In the past 90 days, EPS estimates for this year have slid from $0.71 to $0.54, a 24% decline.

And next year’s profit projections also took a big hit in the past 90 days, dropping from $1.01 to $0.66, or 35%. It’s no wonder that shares have plummeted over 40% since September.

The stock seems inexpensive trading at under 10X forward estimates, with 1900% EPS growth expected this year. But it’s probably best to stay on the sidelines until the analysts start moving estimates up, instead of down. The Zacks Rank will let you know when the coast is clear.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, blogger Zacks Investment Research has a total average return of 1.8% and a 42% success rate. Zacks Investment Research is Ranked #930 out of 4280 Bloggers

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