In this article, we will take a look at the 10 Best Communication Services Stocks to Buy Now.
Nowadays, the communications industry a wide range of entities, from internet companies to century-old legacy media corporations. The fact that many subsegments of this industry are performing well for numerous reasons makes it one of the more dynamic performers so far this year.
Artificial intelligence (AI) integration across platforms and the revival of digital advertising have been two of the primary drivers behind this. Services are now more profitable and efficient owing to AI-enhanced content distribution, automated interaction, and smarter recommendation systems, which has raised optimism for future growth.
Meanwhile, the growth of 5G networks, which is finally taking the lead in communication, has given telecom mainstays a boost. According to market experts, this expansion is expected to reach 8.3 billion 5G connections globally by 2029, significantly surpassing earlier wireless generations.
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Our Methodology
To make our list of the best communication services stocks to buy now, we chose and selected notable names that hold favorable views among market experts and analysts. We have also mentioned hedge fund sentiments around each stock, based on Insider Monkey’s data for Q2 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Snap Inc. (NYSE:SNAP)
Number of Hedge Fund Holders: 35
Snap Inc. (NYSE:SNAP) ranks among the best communication services stocks to buy now. On September 3, Guggenheim restated its Neutral rating on Snap Inc. (NYSE:SNAP) after reviewing the company’s third-quarter user metrics, which show declining growth trends.
According to the firm’s research of Snap’s Ads Manager audience reach data, the company’s global audience has grown by 2.3% so far in the third quarter, which was lower than the 3.9% growth in the second quarter.
Guggenheim states that Snap’s third-quarter daily active users (DAUs) are expected to reach 476 million, which would represent a 7.4% rise and net additions of 7 million users. This forecast represents a decline compared to the second quarter’s 8.6% increase.
The firm anticipates that the Rest of World markets, which are expected to acquire 6 million users in the third quarter, will be the main driver of Snap’s user growth.
Snap Inc. (NYSE:SNAP) is a technology company that manages one of the most popular social media platforms, Snapchat.
9. Charter Communications, Inc. (NASDAQ:CHTR)
Number of Hedge Fund Holders: 56
Charter Communications, Inc. (NASDAQ:CHTR) ranks among the best communication services stocks to buy now. At the Bank of America 2025 Media, Communications & Entertainment Conference on September 4, Charter Communications, Inc. (NASDAQ:CHTR) gave a presentation on its strategic strategy. Following the Cox Communications acquisition, CFO Jessica Fisher highlighted the company’s emphasis on brand integration, operational efficiency, and broadband expansion.
While the Cox Communications acquisition is expected to result in $500 million in synergies and $1 billion in lower capital expenditures, Charter Communications, Inc. (NASDAQ:CHTR) anticipates a $26 rise in free cash flow per share from network evolution activities.
To increase dependability and cut expenses, Charter Communications, Inc. (NASDAQ:CHTR) is also implementing fiber on demand and expanding its network to multi-gigabit speeds. In addition, the company is expected to expand this year with 450,000 rural passings.
Charter Communications, Inc. (NASDAQ:CHTR) is a renowned cable and internet company that serves both residential and commercial clients. Spectrum, its leading brand, provides residential and corporate customers with high-speed internet, cable TV, home phone, and mobile services.
8. The Trade Desk, Inc. (NASDAQ:TTD)
Number of Hedge Fund Holders: 60
The Trade Desk, Inc. (NASDAQ:TTD) ranks among the best communication services stocks to buy now. Despite recent market worries regarding competitive challenges, KeyBanc reaffirmed its Overweight rating and $88 price target on The Trade Desk, Inc. (NASDAQ:TTD) on September 11. The company was trading at far lower multiples than its three-year medians, with the Trade Desk shares closing down 12% while the NASDAQ remained unchanged.
According to KeyBanc, it might take two to three quarters of steady performance to restore investor faith in The Trade Desk, Inc. (NASDAQ:TTD). The main question is whether the company can re-accelerate to high teens to 20% year-over-year growth or if it is developing into a high single-digit to low double-digit percentage grower.
That said, KeyBanc believes the current valuation is an attractive entry point for long-term investors.
The Trade Desk, Inc. (NASDAQ:TTD), a leading supplier of advertising technology, specializes in offering advertising solutions to digital marketers. Advertisers may plan, manage, and optimize their digital ad campaigns across various platforms and channels using its self-service, transparent software and cloud-based platform.
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.”
6. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Number of Hedge Fund Holders: 67
Warner Bros. Discovery Inc. (NASDAQ:WBD) ranks among the best communication services stocks to buy now. Wells Fargo boosted its price target for Warner Bros. Discovery Inc. (NASDAQ:WBD) to $14 from $13 on September 11, retaining an Equal Weight rating on the company’s shares. The revision reflects Wells Fargo’s belief that Warner Brothers Discovery’s Studios and Networks unit might make an appealing merger and acquisition target.
According to the firm’s study of potential buyers, the company may be valued higher in a “blue sky” scenario, which could see a share price of more than $20.
Wells Fargo recognized Netflix as “the most compelling buyer” of Warner Bros. Discovery Inc. (NASDAQ:WBD) assets.
Warner Bros. Discovery Inc. (NASDAQ:WBD) is a media and entertainment company that is divided into three segments: DTC, Studios, and Network. Additionally, it provides content via a number of distribution channels.
5. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 71
Verizon Communications Inc. (NYSE:VZ) ranks among the best communication services stocks to buy now. Verizon Communications Inc. (NYSE:VZ) attended the Goldman Sachs Communicopia + Technology Conference 2025 on September 8. The company’s strategic strategy was presented by CEO Hans Vestberg during the conference.
Notably, the company announced intentions to acquire Frontier Communications with the expectation of cost synergies of $500 million. In terms of financials, Verizon paid off about $7 billion in debt in the second quarter and saw a 4% increase in EBITDA.
With profit margins in the mid-30% range, the company’s benefits platform also generates $2 billion a year.
Meanwhile, Fixed Wireless Access (FWA) has reached 5 million users and plans to have 8 to 9 million by 2028.
Verizon Communications Inc. (NYSE:VZ) is a leading provider of technology, entertainment, and communication services worldwide.
4. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 76
T-Mobile US, Inc. (NYSE:TMUS) ranks among the best communication services stocks to buy now. On September 4, T-Mobile US, Inc. (NYSE:TMUS) stated that it anticipates increasing its service revenue by around $400 million this quarter as it merges users of recently acquired regional rival UScellular.
US antitrust regulators approved the $4.4 billion merger back in July after concluding their probe without seeking to halt the deal announced in May of last year.
After closing its acquisition on August 1, the company acquired 30% of UScellular’s spectrum holdings along with its wireless operations, subscribers, and retail locations.
Originally projecting a run rate of roughly $1 billion, T-Mobile US, Inc. (NYSE:TMUS) now anticipates that the integration will result in synergies that will help save almost $1.2 billion in costs annually.
Based in Bellevue, Washington, T-Mobile US, Inc. (NYSE:TMUS) is a prominent supplier of wireless telecommunication services.
3. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 82
Comcast Corporation (NASDAQ:CMCSA) ranks among the best communication services stocks to buy now. RBC Capital Markets began coverage of Comcast Corporation (NASDAQ:CMCSA) on September 8 with a Sector Perform rating and a $38 price target, stating that the company’s strong performance hasn’t been enough to counteract the intense competition in the broadband market.
Comcast Corporation (NASDAQ:CMCSA) has changed its prices to better protect its position, but as promotional offers expire and customers consider their options, the growth of competitors will continue to be a “significant challenge.”
Although RBC praised Comcast’s network approach, it pointed out longer-term risks related to the company’s dependence on the DOCSIS upgrade path and the possible requirement for more expensive fiber projects in the event that competition heats up.
“The risk-reward profile seems to be favorable, but we see few near-term catalysts,” RBC stated, adding that the stock’s limited visibility into subscriber trends is probably going to keep the firm from re-rating in the near future.
Comcast Corporation (NASDAQ:CMCSA) is a media, entertainment, and communications company that operates through three business units: Cable Communications, NBCUniversal, and Sky, the top entertainment provider in Europe. The company is growing its broadband offerings and enhancing its network infrastructure in response to rising customer demand.
2. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 83
AT&T Inc. (NYSE:T) ranks among the best communication services stocks to buy now. At the Goldman Sachs Communicopia + Technology Conference 2025 on September 9, AT&T Inc. (NYSE:T) took center stage with CEO John Stankey outlining the company’s ambitious plans to build its 5G and fiber networks which are aimed at becoming the leading provider of telecommunications services revenue in the United States by the end of the decade.
The acquisition of mid-band spectrum from EchoStar/DISH is a vital component of the company’s expansion ambitions, as it provides stability for future capacity requirements. The company intends to target particular customer segments with wireless-only solutions in places without fiber infrastructure, as well as take advantage of integrated fiber and wireless solutions, especially in fiber-first areas.
Leading telecommunications firm AT&T Inc. (NYSE:T) provides a wide range of wireless communication services and data solutions to a number of customer groups, including corporations, governmental organizations, wholesale customers, and individual consumers.
1. Netflix Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 133
Netflix Inc. (NASDAQ:NFLX) ranks among the best communication services stocks to buy now. KeyBanc Capital Markets reaffirmed its Overweight rating and $1,390 price target for Netflix Inc. (NASDAQ:NFLX) on September 11 in response to the streaming giant’s partnership with Amazon Ads. The price target is a multiple of 35 times Netflix’s anticipated price-to-earnings ratio in 2027.
The investment firm believes that Netflix’s increasing variety of demand-side platforms (DSPs) is an asset that should help the company’s ad revenue.
According to KeyBanc, Netflix’s low double-digit percentage revenue growth through 2027 will be supported by this diversification approach.
Netflix Inc. (NASDAQ:NFLX) is a well-known global streaming platform that provides limitless access to a vast collection of films, TV series, and video games on devices with internet connections.
While we acknowledge the potential of NFLX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NFLX and that has 100x upside potential, check out our report about this cheapest AI stock.
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