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12 Best Communication Stocks To Invest In

In this article, we discuss 12 best communication stocks to invest in. If you want to read about some more communication stocks, go directly to 5 Best Communication Stocks To Invest In.

The communications sector has been boosted by a macro environment of rising rates and soaring inflation since it is generally one of the best defensive plays on the market in crisis situations. However, the industry faces several challenges as it seeks to tackle a dynamic regulatory, technological, and competitive environment. The United States government recently passed a $1 trillion infrastructure bill that has earmarked over $65 billion for the upgradation of broadband networks across the country, boosting communications stocks. 

Some of the firms likely to be direct beneficiaries from this influx of government money include T-Mobile US, Inc. (NASDAQ:TMUS), Charter Communications, Inc. (NASDAQ:CHTR), and Alphabet Inc. (NASDAQ:GOOG). According to a report by research firm Spend Edge, one of the key areas of growth in the sector is the software side, expected to grow at a compound annual growth rate of 6.20% this year. Research from Deloitte indicates that keeping up with new networks, services, and applications is also going to be a major theme for the sector. 

Our Methodology

The companies that operate in the communications sector were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. 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.

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Best Communication Stocks To Invest In

12. Vodafone Group Public Limited Company (NASDAQ:VOD)

Number of Hedge Fund Holders: 15     

Vodafone Group Public Limited Company (NASDAQ:VOD) engages in telecommunication services in Europe and internationally. The firm features on the list of best communications stocks to invest in. On August 22, the company announced that it had entered into an agreement for the potential sale of Vodafone Hungary for a total cash consideration equivalent to an enterprise value of €1.8 billion.  

On September 22, Deutsche Bank analyst Robert Grindle maintained a Buy rating on Vodafone Group Public Limited Company (NASDAQ:VOD) stock and lowered the price target to 215 GBp from 225 GBp, identifying the rate hike as one of the reasons behind the ratings update.

At the end of the second quarter of 2022, 15 hedge funds in the database of Insider Monkey held stakes worth $566 million in Vodafone Group Public Limited Company (NASDAQ:VOD), compared to 14 in the previous quarter worth $599 billion.

Just like T-Mobile US, Inc. (NASDAQ:TMUS), Charter Communications, Inc. (NASDAQ:CHTR), and Alphabet Inc. (NASDAQ:GOOG), Vodafone Group Public Limited Company (NASDAQ:VOD) is one of the best communication stocks to buy according to hedge funds. 

11. Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC)

Number of Hedge Fund Holders: 17  

Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) provides communication infrastructure, services, and software solutions to the telecom and other sectors. The company is one of the most prominent communications stocks to invest in. In late July, the firm announced that it had completed the acquisition of Vonage, filling out its communications suite and offering a further expansion into enterprise markets. The firm expects to see $400 million in revenue synergies under the deal. 

On July 15, Cowen analyst Paul Silverstein maintained an Outperform rating on Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) stock and lowered the price target to $11 from $15. 

Among the hedge funds being tracked by Insider Monkey, San Francisco-based investment firm Cavalry Asset Management is a leading shareholder in Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC), with 5 million shares worth more than $37 million.

10. Nokia Oyj (NYSE:NOK)

Number of Hedge Fund Holders: 20    

Nokia Oyj (NYSE:NOK) provides mobile, fixed, and cloud network solutions worldwide. The firm is among the best communications stocks to invest in.  On September 8, the company announced that it would extend the industrial portfolio of user equipment to facilitate private wireless network connectivity in North America. As part of the plan, the company plans to use a 5G field router and dongle to enable Internet of Things connectivity for enterprises, educational establishments, cities, and other entities. 

On September 15, Credit Suisse analyst Adithya Metuku upgraded Nokia Oyj (NYSE:NOK) stock to Outperform from Neutral with a price target of EUR 6.31, up from EUR 5.4, noting the firm was better placed than Ericsson due to a strong network infrastructure.  

At the end of the second quarter of 2022, 20 hedge funds in the database of Insider Monkey held stakes worth $309 million in Nokia Oyj (NYSE:NOK), compared to 22 in the previous quarter worth $565 million.

9. VeriSign, Inc. (NASDAQ:VRSN)

Number of Hedge Fund Holders: 35  

VeriSign, Inc. (NASDAQ:VRSN) provides domain name registry services and internet infrastructure that enables internet navigation for various recognized domain names. The firm is among the best communication stocks to invest in. On July 28, the firm posted earnings for the second quarter of 2022, reporting earnings per share of $1.54, beating analyst expectations by $0.02. The revenue over the period was more than $352 million, up close to 7% compared to the revenue over the same period last year and beating estimates by $3 million. 

At the end of the second quarter of 2022, 35 hedge funds in the database of Insider Monkey held stakes worth $4.1 billion in VeriSign, Inc. (NASDAQ:VRSN), compared to 41 in the preceding quarter worth $5.4 billion. 

In its Q4 2021 investor letter, Longleaf Partners Fund, an asset management firm, highlighted a few stocks and VeriSign, Inc. (NASDAQ:VRSN) was one of them. Here is what the fund said:

“VeriSign, Inc. (NASDAQ:VRSN) provides internet infrastructure services worldwide and is best known for its exclusive role managing the .com and .net domains, for which it receives annual fees from all those domain owners. Shares of Verisign gained after reporting strong revenue growth and operating margins that exceeded Wall Street forecasts. We continue to be positive on Verisign’s business, based on its strong competitive position, capacity for global growth in domain names, and its ongoing ability to generate substantial free cash flow.”

8. Lumen Technologies, Inc. (NYSE:LUMN)

Number of Hedge Fund Holders: 42     

Lumen Technologies, Inc. (NYSE:LUMN) is a facilities-based technology and communications company providing various integrated products and services under the Lumen, Quantum Fiber, and CenturyLink brands. It is one of the top communications stocks to invest in. The company is slowly building a dividend profile to make the shares more attractive. On August 18, the company declared a quarterly dividend of $0.25 per share. The forward yield was an impressive 9.06%. 

Among the hedge funds being tracked by Insider Monkey, California-based investment firm Knoll Capital Management is a leading shareholder in Lumen Technologies, Inc. (NYSE:LUMN), with 100,000 shares worth more than $1 million. 

In its Q1 2022 investor letter, Longleaf Partners Fund, an asset management firm, highlighted a few stocks and Lumen Technologies, Inc. (NYSE:LUMN) was one of them. Here is what the fund said:

“Lumen – Lumen Technologies, Inc. (NYSE:LUMN) reported weak organic revenue growth and guided more weakness for 2022. We expect revenue growth to kick back in towards the end of 2022, and the huge FCF coupon helped offset value decline from the weaker guidance. The other factor weighing on the stock price was largest shareholder Temasek’s partial sale of its 10% position in the quarter, creating uncertainty and a share price overhang. We have a 13D filed and continue to urge the company to take steps to address the significant price-to-value gap, including continued share buybacks.”

7. AT&T Inc. (NYSE:T)

Number of Hedge Fund Holders: 55  

AT&T Inc. (NYSE:T) provides telecommunications, media, and technology services worldwide. It is one of the elite communication stocks to invest in. On July 21, the firm posted earnings for the second quarter of 2022, reporting earnings per share of $0.65, beating analyst expectations by $0.03. The revenue over the period was more than $29 billion, down close to 17% compared to the revenue over the same period last year but beating estimates by $130 million. 

On August 18, MoffettNathanson analyst Craig Moffett maintained a Market Perform rating on AT&T Inc. (NYSE:T) stock and lowered the price target to $17 from $19, noting the firm had accelerated subscriber growth but is suffering at the hands of cutting free cash flow. 

At the end of the second quarter of 2022, 55 hedge funds in the database of Insider Monkey held stakes worth $1.7 billion in AT&T Inc. (NYSE:T), compared to 74 in the preceding quarter worth $4 billion. 

In its Q2 2022 investor letter, Argosy Investors, an asset management firm, highlighted a few stocks and AT&T Inc. (NYSE:T) was one of them. Here is what the fund said:

“I purchased shares of AT&T Inc. (NYSE:T) prior to its spin-off of Warner Brothers Discovery (WBD). Most people are probably familiar with AT&T. They are a major cellular service provider, and until recently owner of the Time Warner media assets, which include HBO, CNN, TNT, TBS, Cartoon Network, DC Comics and the Batman content brands, and more. At the time of my purchase, I estimated that the combined T/WBD assets traded at a 15% levered FCF yield, or 6x FCF. I also believe that WBD, which now has HBO Max, has future growth in front of it which was previously in doubt when Discovery was primarily tied to the declining cable television bundle. Since then, Netflix reported disappointing subscriber growth, which threw all streaming companies into disarray. WBD followed that news with a disappointing outlook on its business during its own quarterly earnings.

As a result, shares of WBD have declined nearly 40% since the spin-off. WBD now trades for 7x 2023E FCF and there is great potential for returns over the next few years as WBD pays down debt used to finance its merger combining Warner Brothers and Discovery and grows. We do not own a large position in WBD at present, but we may add to it over time.”

6. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 58 

Verizon Communications Inc. (NYSE:VZ) offers communications, technology, information, and entertainment products and services. It is one of the elite communications stocks to invest in. On September 22, the company announced that it had received $11.5 million from the US Department of Defense to build a private 5G network in an aircraft maintenance hangar at the Joint Base Pearl Harbor Hickam military base. The design will enable military leaders to leverage the high-speed, high-bandwidth and low-latency of Verizon 5G. 

Among the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading shareholder in Verizon Communications Inc. (NYSE:VZ), with 17 million shares worth more than $879.8 million. 

Along with T-Mobile US, Inc. (NASDAQ:TMUS), Charter Communications, Inc. (NASDAQ:CHTR), and Alphabet Inc. (NASDAQ:GOOG), Verizon Communications Inc. (NYSE:VZ) is one of the best communication stocks to buy according to hedge funds. 

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and VeriSign, Inc. (NASDAQ:VRSN) was one of them. Here is what the fund said:

“Over the last year, we have repositioned our portfolio to navigate the course we see ahead. We added to more defensive areas of the portfolio like telecom (Verizon Communications Inc. (NYSE:VZ)). While the next month or two will likely prove choppy on account of the Omicron variant, we believe that Omicron, like Delta, represents a speed bump on the way to recovery rather than a true change in course. We see strong economic momentum continuing in 2022 and we expect interest rates to rise. After a decade of remarkably low rates, we would not be surprised if this change in direction is accompanied by some fits and starts in the markets. With our emphasis on pricing power, purposeful sector exposure, valuation discipline, and a strong dividend profile, we believe we are well-positioned for the year ahead.”

 

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Disclosure. None. 12 Best Communication Stocks To Invest In is originally published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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

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!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

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.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

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Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

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And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

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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.

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

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Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

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