In this article, we will take a look at the 5 best communication services stocks to invest in. To see more such companies, go directly to 13 Best Communication Services Stocks To Invest In.
5. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 55
While AT&T Inc. (NYSE:T) has lost its dividend aristocrat status, the company is still a high-dividend stock, with a yield of over 6.4% as of May 8. Recently, HSBC upgraded AT&T Inc. (NYSE:T) to Buy from Hold with a price target of $21. The analyst believes the selloff after AT&T Inc. (NYSE:T)’s Q1 results has created a buying opportunity. He believes the market’s attention “should turn to falling CAPEX spend” in 2024.
AT&T Inc. (NYSE:T) shares saw a decline in hedge fund sentiment in the fourth quarter, with 55 funds ending the period with the stock in their portfolios, down from 61 hedge funds in the previous quarter, according to Insider Monkey’s database.
4. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 56
Verizon Communications Inc. (NYSE:VZ) shares jumped in April after the company said it added 633,000 subscribers in the first quarter of 2023. Verizon Communications Inc. (NYSE:VZ)’s adjusted EPS in the quarter came in at $1.20, beating estimates by $0.01. Revenue in the quarter fell 1.9% year over year to $32.9 billion, missing estimates by $740 million.
Insider Monkey’s database of 943 hedge funds shows that 56 hedge funds had stakes in Verizon Communications Inc. (NYSE:VZ), as compared to 62 funds in the previous quarter. The biggest hedge fund stakeholder of Verizon Communications Inc. (NYSE:VZ) during this period was Diamond Hill Capital of Ric Dillon which owns a $267 million stake in the company.
3. Comcast Corporation (NASDAQ:CMCSK)
Number of Hedge Fund Holders: 72
Comcast Corporation (NASDAQ:CMCSK) is the biggest media and telecom conglomerate in the US, with media, internet services, TV and broadcasting businesses. It is one of the best communication services stocks to buy according to hedge funds. Insider Monkey’s proprietary database of 943 funds shows that 72 hedge funds had stakes in Comcast Corporation (NASDAQ:CMCSK) as of the end of the fourth quarter of 2022. The most notable hedge fund stakeholder of Comcast Corporation (NASDAQ:CMCSK) was Jean-Marie Eveillard’s First Eagle Investment Management which owns a $1.1 billion stake in the company.
Recently, Comcast Corporation (NASDAQ:CMCSK) stock jumped after BofA analyst Jessica Reif upgraded it to Buy from Neutral. The analyst also increased her price target for Comcast Corporation (NASDAQ:CMCSK) to $49.
ClearBridge Multi Cap Growth Strategy made the following comment about Comcast Corporation (NASDAQ:CMCSA) in its Q4 2022 investor letter:
“That balance served the Strategy well throughout the year, enabling outperformance against the benchmark in all four quarters. Results in the last three months were driven by a long-time media position in Comcast Corporation (NASDAQ:CMCSA), which we consider a durable compounder due to its consistent revenue growth and free cash flow generation. Comcast shares saw a snapback after a difficult first half of the year caused by cord cutting in its cable business and slowing subscriber growth in its broadband business. A flexible balance sheet and strong cash generation enabled the company to repurchase shares during the selloff earlier in the year.”
2. Charter Communications, Inc. (NASDAQ:CHTR)
Number of Hedge Fund Holders: 74
Charter Communications, Inc. (NASDAQ:CHTR) recently soared to new highs not seen since March after the company posted Q1 results which showed strong revenue and adjusted EBITDA. Charter Communications, Inc. (NASDAQ:CHTR) also added 76,000 residential and small and medium business internet customers in the period.
Out of the 943 hedge funds tracked by Insider Monkey, 74 hedge funds reported owning stakes in Charter Communications, Inc. (NASDAQ:CHTR), as of the end of the last quarter of 2022. Natixis Global Asset Management’s Harris Associates had a $1.3 billion stake in Charter Communications, Inc. (NASDAQ:CHTR).
1. T-Mobile US, Inc. (NYSE:TMUS)
Number of Hedge Fund Holders: 94
Earlier this month, KeyBanc said that T-Mobile US, Inc. (NYSE:TMUS) has a strong lead over AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ) when it comes to 5G in terms of population coverage and midband spectrum holdings.
T-Mobile US, Inc. (NYSE:TMUS) is one of the most popular stocks among elite hedge funds. Insider Monkey’s database of 943 hedge funds shows that 94 funds had stakes in T-Mobile US, Inc. (NYSE:TMUS) as of the end of the last quarter of 2022. The biggest stakeholder of T-Mobile US, Inc. (NYSE:TMUS) was Warren Buffett’s Berkshire Hathaway which had a $734 million stake in the company.
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