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10 Best Telecom Stocks to Buy Right Now

In this article, we discuss 10 best telecom stocks to buy right now. If you want to read about some more telecom stocks to buy right now, go directly to 5 Best Telecom Stocks to Buy Right Now.

Although cable broadband providers continue to control over 66% of the market share in the telecommunications business, as they have for more than a decade, a number of external pressures and consumer preferences, coupled with comparable or superior data speeds offered by other technologies, are fast challenging their supremacy in the medium. According to a report by management consulting firm RSM US, these cable providers rely on a strong, established infrastructure, capable of providing reliable, high-speed internet connectivity and video. 

However, changing consumer behaviors are reshaping the industry. According to data from Pew Research Center, the share of Americans who say they watch television via cable or satellite is falling rapidly and is being replaced by streaming services. Bloomberg data reveals that there were 39.6 million paid cable TV connections in the US at the end of 2021, compared to 75.2 million Netflix subscribers, 42.9 million Disney+ subscribers, and 40.9 million Hulu subscribers. Per RMS, the shift indicates competitive differentiation driven by the value of data offerings. 

Some of the best telecom stocks to buy right now that are investing heavily in new technologies along with changing consumer behaviors include T-Mobile US, Inc. (NASDAQ:TMUS), Charter Communications, Inc. (NASDAQ:CHTR), and Alphabet Inc. (NASDAQ:GOOG). RMS also claims that FWA technology presents significant opportunities for growth to both cable and telco providers in the coming years, but network expansion may take time. Satellite providers have avenues for growth as well, per the management consultancy.  

Our Methodology

The companies that operate in the telecom sector were selected for the list. The analyst ratings of these firms and the latest updates related to them are also discussed to provide some additional context. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.

Best Telecom Stocks to Buy Right Now

10. Chunghwa Telecom Co., Ltd. (NYSE:CHT)

Number of Hedge Fund Holders: 6    

Chunghwa Telecom Co., Ltd. (NYSE:CHT) provides telecommunication services in Taiwan and internationally. The firm features on the list of best communication stocks to invest in. On July 29, the firm posted earnings for the second quarter of 2022, reporting earnings per share of NT$1.25 and a revenue of NT$52.44 billion, up more than 5.7% compared to the revenue over the same period last year. The firm said Consumer Business Group revenue increased by 3.3% to NT$31.52 billion and Enterprise Business Group revenue increased by 9.4% to NT$17.75 billion. 

On July 18, JPMorgan analyst Alvin Au upgraded Chunghwa Telecom Co., Ltd.  (NYSE:CHT) stock to Overweight from Neutral with a NT$140 price target, highlighting Chunghwa Telecom Co., Ltd.  (NYSE:CHT)’s strong foundation.  

At the end of the second quarter of 2022, 6 hedge funds in the database of Insider Monkey held stakes worth $152.5 million in Chunghwa Telecom Co., Ltd. (NYSE:CHT), compared to 7 in the previous quarter worth $159 million.

Just like T-Mobile US, Inc. (NASDAQ:TMUS), Charter Communications, Inc. (NASDAQ:CHTR), and Alphabet Inc. (NASDAQ:GOOG), Chunghwa Telecom Co., Ltd. (NYSE:CHT) is one of the best communications stocks to buy now.

9. TELUS Corporation (NYSE:TU)

Number of Hedge Fund Holders: 15    

TELUS Corporation (NYSE:TU) provides a range of telecommunications and information technology products and services in Canada. It is one of the most prominent communication stocks to invest in. On August 11, TELUS Corporation (NYSE:TU) announced that it had received the court and regulatory approvals needed for the purchase of LifeWorks. The former had bought the latter in a deal worth C$2.3 billion in mid-June. The Ontario Superior Court of Justice approved the plan of arrangement. 

On September 29, investment advisory National Bank maintained an Outperform rating on TELUS Corporation (NYSE:TU) stock and lowered the price target to C$34 from C$36. Analyst Adam Shine issued the ratings update. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in TELUS Corporation (NYSE:TU), with 3.7 million shares worth more than $82 million. 

8. Nexstar Media Group, Inc. (NASDAQ:NXST)

Number of Hedge Fund Holders: 33  

Nexstar Media Group, Inc. (NASDAQ:NXST) is a television broadcasting and digital media company, focused on the acquisition, development, and operation of television stations and interactive community websites and digital media services. The firm is among the best communications stocks to invest in. In mid-August, the company announced that it had agreed to purchase a controlling interest in The CW Network. Warner Bros. Discovery and Paramount Global are the other two media giants with partial ownership in the firm. 

On September 6, Rosenblatt analyst Barton Crockett upgraded Nexstar Media Group, Inc. (NASDAQ:NXST) stock to Buy from Neutral with a price target of $246, up from $181, noting that the company grew even in a recessionary environment. 

At the end of the second quarter of 2022, 33 hedge funds in the database of Insider Monkey held stakes worth $779 million in Nexstar Media Group, Inc. (NASDAQ:NXST), compared to 39 in the preceding quarter worth $1 billion. 

In its Q1 2022 investor letter, Richie Capital Group, an asset management firm, highlighted a few stocks and Nexstar Media Group, Inc. (NASDAQ:NXST) was one of them. Here is what the fund said:

“Nexstar Media Group, Inc. (NASDAQ:NXST) – The television broadcasting and digital media company surged during the quarter after presenting at an investor conference where management pointed to a strong 2022 for both political advertising and retransmission. They have exposure to more than 80% of markets with competitive mid-term political races. NXST is developing new ad categories such as sports betting and they are focused on expanding digital ad revenue and providing digital solutions to local advertisers. Auto advertising will return in the fall as auto dealerships re-enter the market to sell their replenished inventory.”

7. Altice USA, Inc. (NYSE:ATUS)

Number of Hedge Fund Holders: 35 

Altice USA, Inc. (NYSE:ATUS) provides broadband communications and video services in the United States, Canada, Puerto Rico, and the Virgin Islands. The firm is among the best communication stocks to invest in. On August 3, the firm posted earnings for the second quarter of 2022, reporting earnings per share of $0.23 and a revenue of $2.4 billion, beating analyst expectations by $20 million. The firm said it was increasing cash capex to approximately $1.7 billion-$1.8 billion in FY 2022. 

On August 4, TD Securities analyst Vince Valentini maintained a Buy rating on Altice USA, Inc. (NYSE:ATUS) stock and raised the price target to $21 from $17, highlighting that the Q2 results of the firm were counteracted by internet net additions. 

Among the hedge funds being tracked by Insider Monkey, Washington-based firm HG Vora Capital Management is a leading shareholder in Altice USA, Inc. (NYSE:ATUS), with 15 million shares worth more than $138.8 million. 

In its Q2 2022 investor letter, MPE Capital, an asset management firm, highlighted a few stocks and Altice USA, Inc. (NYSE:ATUS) was one of them. Here is what the fund said:

“Two (very) costly mistakes I’ve made over the last twelve months have been my investments in Altice USA, Inc. (NYSE:ATUS) and Poshmark. Both are down over 50% from my initial purchase price. I not only poorly appraised business quality, I also incorrectly appraised the intrinsic value of both of these companies. It should rarely end up the case that we pay over intrinsic value, at worst case we should never lose money on an investment. I will dive into one of these mistakes below and maybe dive into the other in a future letter. My thinking when buying Altice USA was that they operate as a duopoly in their main footprint, the New York Tri-State area. They provide a needs-based service: internet, video, and voice services. I figured this is a very stable business with high barriers to entry. Management seemed competent as well based on historical capital allocation decisions. I didn’t fully appreciate at the time how poorly positioned they were relative to Verizon Fios, as well as how fiercely competitive the business can get on promotions and customer acquisition.

Altice offers hybrid fiber coaxial (HFC) while Fios offers fiber-to-the-home (FTTH). FTTH is a far superior product, which has led to some share loss to Fios in the parts of their footprint that overlap. There have also been some subscriber losses in their other footprint due to new cable entrants and fixed wireless offerings (…read more)

6. DISH Network Corporation (NASDAQ:DISH)

Number of Hedge Fund Holders: 41  

DISH Network Corporation (NASDAQ:DISH), together with its subsidiaries, provides pay-TV services in the United States. It is one of the top communication stocks to invest in. On August 3, the firm posted earnings for the second quarter of 2022, reporting earnings per share of $0.82, beating estimates by $0.18. The revenue over the period was $4.2 billion. The firm said that net pay-TV subscribers decreased approximately 257,000 in the quarter, compared to a net decrease of about 67,000 in the same period a year ago. 

On August 4, JPMorgan analyst Philip Cusick maintained a Neutral rating on DISH Network Corporation (NASDAQ:DISH) stock and lowered the price target to $24 from $30, noting the firm reported better Q2 results on video stabilization. 

At the end of the second quarter of 2022, 41 hedge funds in the database of Insider Monkey held stakes worth $936.9 million in DISH Network Corporation (NASDAQ:DISH), compared to 48 in the preceding quarter worth $1.76 billion. 

In addition to T-Mobile US, Inc. (NASDAQ:TMUS), Charter Communications, Inc. (NASDAQ:CHTR), and Alphabet Inc. (NASDAQ:GOOG), DISH Network Corporation (NASDAQ:DISH) is one of the best communication stocks to buy now according to hedge funds. 

In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and DISH Network Corporation (NASDAQ:DISH) was one of them. Here is what the fund said:

“Portfolio holdings in the communication services and financial sectors also made strong contributions. DISH Network Corporation (NASDAQ:DISH) continues to make progress on the buildout of its greenfield 5G network, with Las Vegas slated to become the first market launched later this year. The company gained credibility, and its stock reacted favorably, after it announced a partnership with Amazon to deploy a 5G cloud-native network using AWS’s cloud infrastructure. While the stock has been volatile in recent quarters, we continue to feel confident in Dish’s long-term prospects, which include competing as a fourth U.S. wireless carrier. Charter Communications has been executing well and benefiting from the growth in residential broadband, which has been accelerated by COVID-19 and should see further support from the Biden Administration’s infrastructure bill, which earmarks $65 billion for broadband buildout. In addition, we expect the company to continue to grow its wireless business,
leveraging its mobile virtual network operator (MVNO) relationship with Verizon. The company continues to generate strong and growing free cash flow and deploys it toward consistent and material share buybacks.”

Click to continue reading and see 5 Best Telecom Stocks to Buy Right Now.

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Disclosure. None. 10 Best Telecom Stocks to Buy Right Now is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

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Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

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Elon Musk was even more blunt:

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The “Toll Booth” Operator of the AI Energy Boom

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The Hedge Fund Secret That’s Starting to Leak Out

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A New Dawn is Coming to U.S. Stocks

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Should I put my money in Artificial Intelligence?

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Click to continue reading…