5 Best Telecom Stocks to Buy Right Now

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

5. 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 September 28, the company announced that it had won a task order to modernize networks for the US Customs and Border Protection. The task order is worth over $119 million and comes with an eleven year deal if all options are exercised. The order calls for upgrades on virtual private networking services, cloud connectivity, audio conferencing capabilities, and managed network and security services. 

On August 18, investment advisory MoffettNathanson maintained a Market Perform rating on AT&T Inc. (NYSE:T) stock and lowered the price target to $17 from $19. Analyst Craig Moffett issued the ratings update. 

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.”

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