Like many of its telco industry rivals, the TPG Telecom Ltd (ASX: TPM) share price has thoroughly underperformed the market in the last 12 months.
Since this time last year the company's shares have fallen 57% and hit a multi-year low of $5.05 on Thursday.
Is it time to snap up shares?
Whilst I do think that TPG Telecom could potentially be a bit of a bargain at the current share price, I would suggest investors hold off an investment until its full-year results have been announced.
On Tuesday September 19 it will release its FY 2017 results and there are concerns that it could report a loss of market share.
According to a note out of UBS, its analysts believes TPG Telecom's market share may have fallen by as much as 1% over the last 12 months.
Furthermore, UBS appears concerned that there could be more market share losses in the near-term as the NBN rolls out into regional Australia.
This could put pressure on the company's bottom line growth, especially as its margins become squeezed from the high cost of the NBN.
Foolish takeaway
Right now the telco industry is undoubtedly a difficult place to invest.
Whilst I'm positive that the shares of Telstra Corporation Ltd (ASX: TLS), TPG Telecom, and Vocus Group Ltd (ASX: VOC) have significant long-term upside potential, in the short-term I do believe they could yet drop lower as investor sentiment weighs heavily on them.
At this point I think Telstra could be worth a buy for its dividend, but I would class the others as holds for now.
