10 Best Communication Services Stocks to Buy Now

7. Roku, Inc. (NASDAQ:ROKU)

Number of Hedge Fund Holders: 60

Roku, Inc. (NASDAQ:ROKU) ranks among the best communication services stocks to buy now. Following conversations with Roku, Inc. (NASDAQ:ROKU)’s management team at Benchmark’s 12th annual TMT conference in New York, the firm maintained its Buy rating and $130 price target for the company on September 8.

The firm observed that discussions with Roku, Inc. (NASDAQ:ROKU) executives had taken on a “incrementally more positive” tone, with management expressing optimism that platform revenue growth is likely to be sustainable over the coming years.

The firm also addressed concerns over valuation, stating that buy-side expectations for 2026 EBITDA had risen to levels comparable to those of late 2023 and that sell-side estimates were also growing more aggressive.

Founded in 2002, Roku, Inc. (NASDAQ:ROKU) is a publicly traded American firm that specializes in smart TVs and streaming gadgets. The company licenses its streaming technology to other manufacturers and runs an advertising campaign via its streaming network.

Benchmark suggested Roku should “take control of the narrative” by setting medium-term goals or a more defined growth plan. It also mentioned that with better execution, more business achievements, and increased free cash flow, the company could become a “multi-year compounder.”