11 Best Communication Stocks To Buy Now

Published on March 26, 2023 at 9:00 am by Fatima Farooq in Hedge Funds, News

In this article, we will be taking a look at the 11 best communication stocks to buy now. To skip our detailed analysis of the communications sector, you can go directly to see the 5 Best Communication Stocks To Buy Now.

The communications service sector is traditionally considered to include only media and broadcasting companies. However, in recent times, the sector has become more diversified with the inclusion of several technology companies as well. The Global Industry Classification Standard launched a new communication services sector in September 2018, and this is what brought about the change in what is classified as communications stocks. As a result of this new sector categorization, even some of the FANG stocks — Facebook (Meta Platforms (NASDAQ:META), Alphabet Inc. (NASDAQ:GOOG), and Netflix, Inc. (NASDAQ:NFLX) — joined the communication services sector. The inclusion of these stocks in the sector highlights the inherent diversity of the communications sector, which was then turned into one of the largest sectors in the S&P 500.

According to a Baron Funds report on the communications sector published in October 2018, with the above-mentioned changes, this sector became the sixth-largest sector in the S&P 500, accounting for about 9% of the index by weight. The inclusion of mega tech companies alongside traditional communication services companies like AT&T Inc. (NYSE:T), Verizon Communications (NYSE:VZ), and T-Mobile US, Inc. (NASDAQ:TMUS) meant that the communication sector was one that was ever-expanding. Today, it includes media, broadcasting, entertainment, telecommunications, and even technology companies. This diversification may be why the sector has been performing well in 2023. In January, the S&P 500 communication services sector rose by about 12.7%, while the broader benchmark rose by merely 6.6%, for instance.

A major reason for the expansion and continued growth of the communications sector is the COVID-19 pandemic, as illustrated by the examples of the social media, streaming services, and mobile connectivity areas within communication services. The pandemic revolutionized the communications sector and led to a growth in the number of mobile subscribers in 2020. According to a GSM Association report published in 2020, the number of mobile connections rose from 5.2 billion at the end of 2019 to 7.9 billion in the first quarter of 2020. The growing use of enterprise messaging, online meetings, and online team collaborations since 2020 has also led to forecasts expecting the Unified Communication as a Service (UCaaS) market to grow exponentially. In 2024, this market is expected to be valued at $24.8 billion, growing at a compound annual growth rate of 9.5% between 2020 and 2024.

This growth has been aided by governmental support for the communications sector. In a previous article, we mentioned how in 2021, the US government passed a $1 trillion infrastructure bill that earmarked over $65 billion to upgrade broadband networks across the country. A year after this bill was passed, the Federal Communications Commission (FCC) was able to launch the Affordable Connectivity Program, which lowered the cost of high-speed internet services by $30 per month.

Additionally, the US Department of Commerce also launched a $42 billion Broadband Equity, Access and Deployment (BEAD) Program to further increase governmental support for the communications sector. With this immense growth, investors today are increasingly attracted to communications stocks, leading us to compile a list of the best stocks in this sector to buy today.

EvgeniiAnd/Shutterstock.com

Let’s now take a look at the 11 best communication stocks to buy now.

Our Methodology

We selected our list of the best communication stocks by considering hedge fund sentiment. The stocks selected are popular among the 943 hedge funds tracked by Insider Monkey in the fourth quarter. They also have positive ratings from financial analysts, and price targets suggesting upside potential according to TipRanks. The stocks are ranked on the basis of the number of hedge funds holding stakes in them, from the lowest to the highest number.

Best Communication Stocks To Buy Now

11. TELUS International (NYSE:TU)

Number of Hedge Fund Holders: 17

TELUS International (NYSE:TU) is a communication services company based in Vancouver, Canada. The company offers telecommunications and information technology products and services. It operates through its Technology Solutions and Digitally-Led Customer Experiences Segments.

Sebastiano Petti at JPMorgan holds an Overweight rating on TELUS International (NYSE:TU) shares as of February 13.

TELUS International (NYSE:TU) is one of the three largest telecom providers in Canada, accounting for about 90% of the country’s $53 billion telecommunications market. According to TipRanks, analysts on Wall Street rate the stock as a Strong Buy. The average price target on the stock is $22.43, with a high forecast of $23.96, as of March 22. TELUS International (NYSE:TU) was trading at $19.79 on the same date, and this gives the stock an upside potential of 13.34%.

There were 17 hedge funds long TELUS International (NYSE:TU) in the fourth quarter, with a total stake value of $255 million.

TELUS International (NYSE:TU), like AT&T Inc. (NYSE:T), Verizon Communications (NYSE:VZ), and T-Mobile US, Inc. (NASDAQ:TMUS), is a communications services stock many elite hedge funds are piling into today.

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

Number of Hedge Fund Holders: 31

Nexstar Media Group, Inc. (NASDAQ:NXST) is a broadcasting company providing digital media and more. The company focuses on the acquisition, development, and operation of TV stations and interactive community websites. It offers free programming to TV-viewing audiences.

Guggenheim’s Curry Baker holds a Buy rating and a $22o price target on Nexstar Media Group, Inc. (NASDAQ:NXST) shares as of January 19.

The company owns 200 TV stations across over 100 different American media markets. As a result, while most broadcasting companies might be struggling today, Nexstar Media Group, Inc. (NASDAQ:NXST) is thriving. Between 2019 and 2023, the shares have risen by 151.35%. As of March 22, the company also has a dividend yield of 3.31%. Nexstar Media Group, Inc. (NASDAQ:NXST) has raised its dividend for the past nine years in a row, making it a reliable passive income investment as well.

Cardinal Capital was the largest shareholder in Nexstar Media Group, Inc. (NASDAQ:NXST) at the end of the fourth quarter, holding 943,570 shares. In total, 31 hedge funds were long the stock, with a total stake value of $458 million.

9۔ DISH Network Corporation (NASDAQ:DISH)

Number of Hedge Fund Holders: 37

DISH Network Corporation (NASDAQ:DISH) is a cable and satellite company based in Englewood, Colorado. The company provides pay-TV services in the US. It operates through its Pay-TV and Wireless segments.

As of March 13, Michael Rollins at Citigroup holds a Buy rating on DISH Network Corporation (NASDAQ:DISH) shares.

DISH Network Corporation (NASDAQ:DISH) has been working to increase its 5G network coverage in the US. By the third quarter, the company has constructed 10,000 sites capable of providing coverage to 35% of the US population. In January, DISH Network Corporation (NASDAQ:DISH) disclosed that it had begun constructing 15,000 more 5G sites to provide broadband coverage to over 60% of the population. According to TipRanks, analysts on Wall Street have an average price target of $18.33 on the shares, which were trading at $9.58 as of March 22. This gives the stock an upside potential of 91.34%.

DISH Network Corporation (NASDAQ:DISH) was found among the 13F holdings of 37 hedge funds in the fourth quarter. Their total stake value was $617 million.

8۔ Twilio Inc. (NYSE:TWLO)

Number of Hedge Fund Holders: 48

Twilio Inc. (NYSE:TWLO) is a provider of software and communications solutions in the US and internationally. The company is based in San Francisco, California, and operates cloud communications platforms enabling developers to build, scale, and operate customer engagement in software applications.

T. Michael Walkley, an analyst at Canaccord, holds a Buy rating on Twilio Inc. (NYSE:TWLO) shares as of March 22. The analyst also raised his price target on the stock from $88 to $97.

Twilio Inc. (NYSE:TWLO) is the communications services company behind the integration of OpenAI’s GPT-3 model since 2020. As such, the company may be set to benefit from the tailwinds in the AI industry, especially since the rise of ChatGPT. Twilio Inc. (NYSE:TWLO) saw its revenue increase by 21.58% year-over-year in the fourth quarter, coming in at $1.02 billion. Revenue from its Data & Applications segment increased even faster, by 25% year-over-year, coming in at $118 million.

ARK Investment Management was the largest shareholder in Twilio Inc. (NYSE:TWLO) at the end of the fourth quarter, holding 7.4 million shares. A total of 48 hedge funds were long the stock in that quarter, with a total stake value of $1.5 billion.

RiverPark Advisors, an investment advisory firm, mentioned Twilio Inc. (NYSE:TWLO) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“Twilio Inc. (NYSE:TWLO): TWLO was also a top detractor for the quarter. Despite better-than-expected 3Q results, management provided 4Q guidance well below expectations and lowered its long-term organic revenue growth expectations from 30% to 15%-25%. A key component of these lowered expectations was the company’s failure to execute in enterprise software sales, which was a fundamental part of our investment thesis, so we exited the position during the quarter.”

7۔ AT&T Inc. (NYSE:T)

Number of Hedge Fund Holders: 55

AT&T Inc. (NYSE:T) is an integrated telecommunication services company based in Dallas, Texas. The company operates through its Communications and Latin America segments. It offers wireless voice and data communications, handsets, wireless data cards, and more.

On January 24, Citigroup’s Michael Rollins reiterated a Buy rating on AT&T Inc. (NYSE:T) shares.

Over the past three years, AT&T Inc. (NYSE:T) has grown its revenue at an annualized rate of 3.4%, from $112.5 billion to $120.2 billion. From 2020 to 2022, the company’s sales expanded from $72.6 billion to $81.8 billion. Analysts on Wall Street consider AT&T Inc. (NYSE:T) to be a Moderate Buy, according to TipRanks. The average price target on the stock is $22.11, while the shares were trading at $18.54 on March 22. This gives the stock an upside potential of 19.26%.

Our hedge fund data shows 55 funds long AT&T Inc. (NYSE:T) in the fourth quarter, with a total stake value of $1.6 billion.

6۔ Verizon Communications (NYSE:VZ)

Number of Hedge Fund Holders: 56

Verizon Communications (NYSE:VZ) is another integrated telecommunication services company on our list. The company provides technology, information, and entertainment products and services. It operates through its Verizon Consumer Group (Consumer) and Verizon Business Group (Business) segments.

Gregory Williams at Cowen holds an Outperform rating on Verizon Communications (NYSE:VZ) shares as of January 25.

Verizon Communications (NYSE:VZ) is a highly reliable dividend stock, having raised its yield for the past 18 years in a row. The company also has a dividend yield of 6.92% as of March 22, making it more attractive. According to TipRanks, the average price target on Verizon Communications (NYSE:VZ) shares is $45.30, while the stock was trading at $37.74 on March 22. This gives the shares an upside potential of 20.03%.

Out of the 56 hedge funds long Verizon Communications (NYSE:VZ) in the fourth quarter, Citadel Investment Group was the largest shareholder in the company, holding 10.1 million shares. The total stake value in the company was $1.5 billion.

Verizon Communications (NYSE:VZ), like AT&T Inc. (NYSE:T) and T-Mobile US, Inc (NASDAQ:TMUS), is among the most popular communications stocks on the market today.

Click to continue reading and see the 5 Best Communication Stocks To Buy Now.

Suggest articles:

Disclosure: None. 11 Best Communication Stocks To Buy Now is originally published on Insider Monkey.

NYSE:T NYSE:VZ NYSE:TU Headline NYSE:TWLO Show more...

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on May 1, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 75%.

For a ridiculously low price of just $24, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

Head over to our website and subscribe to our Premium Readership Newsletter for just $24.
Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

A New Dawn is Coming to U.S. Stocks

Published on May 2, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up