5 Best Communication Stocks To Buy According To Hedge Funds

4. Comcast Corporation (NASDAQ:CMCSA)

Number of Hedge Fund Holders: 68

Comcast Corporation (NASDAQ:CMCSA) is a global media and technology company operating in various segments, including Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios, and Theme Parks. The company provides residential broadband and wireless services, video services, and advertising. It is one of the top communication stocks to buy. 

On January 25, Comcast Corporation (NASDAQ:CMCSA) reported a Q4 Non-GAAP EPS of $0.84 and a revenue of $31.25 billion, outperforming Wall Street estimates by $0.05 and $800 million, respectively. Despite ongoing declines in broadband subscribers, the company exceeded expectations in its fourth-quarter results and announced an increased buyback program of $15 billion.

According to Insider Monkey’s third quarter database, 68 hedge funds were bullish on Comcast Corporation (NASDAQ:CMCSA), compared to 66 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the leading stakeholder of the company, with approximately 32 million shares valued at $1.4 billion. 

ClearBridge Large Cap Value Strategy made the following comment about Comcast Corporation (NASDAQ:CMCSA) in its Q3 2023 investor letter:

“Long-term holdings Charter and Comcast Corporation (NASDAQ:CMCSA) delivered strong second-quarter results relative to expectations; their stable recurring revenue streams and undemanding valuations were rewarded in the current environment. Cable multiples compressed over the past 24 months on fears of heightened competition in their core broadband business from fixed wireless and fiber providers. While fiber remains a competitive alternative to cable broadband over the long term, high upfront investments and a materially higher cost of capital are resulting in slower buildouts than previously expected. Fixed wireless also continues to gain traction, particularly in rural markets, but share gains also appear to be moderating. At the same time, both Comcast and Charter are expanding their footprints into rural and adjacent markets while gaining wireless market share, leveraging their mobile virtual network operator agreements with Verizon. We think both cable companies are well-positioned to continue to grow while generating substantial free cash flows. We added to Comcast during the quarter.”