5 Best Telecom Stocks to Invest In

2. Comcast Corporation (NASDAQ:CMCSA)

Number of Hedge Fund Holders: 73

Comcast Corporation (NASDAQ:CMCSA) is a Pennsylvania-based media and technology company that operates through Cable Communications, Media, Studios, Theme Parks, and Sky segments. Comcast Corporation (NASDAQ:CMCSA) is one of the best telecom stocks to invest in. The company is set to pay a $0.27 per share quarterly dividend on January 25, 2023 to shareholders of record as of January 4. The dividend yield on December 26 came in at 3.07%. 

On December 12, Morgan Stanley analyst Benjamin Swinburne forecasted limited EBITDA growth and dropping free cash flow for cable and satellite operators in 2023 and remains “broadly on the sidelines” among the group until rising capex drives faster top line. In that context, he prefers Overweight-rated Comcast Corporation (NASDAQ:CMCSA), which he said trades at “the lowest valuation in the coverage group despite what we see as the continued potential for double-digit EPS growth over time.” 

According to Insider Monkey’s data, Comcast Corporation (NASDAQ:CMCSA) was part of 73 hedge fund portfolios at the end of Q3 2022, compared to 75 in the earlier quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the largest stakeholder of the company, with 31.6 million shares worth over $928 million. 

ClearBridge Investments made the following comment about Comcast Corporation (NASDAQ:CMCSA) in its Q3 2022 investor letter:

“The Strategy was not completely insulated to macro headwinds and some companies saw tough comparisons after strong pull forwards in demand during the COVID-19 pandemic. Media companies including Comcast Corporation (NASDAQ:CMCSA) were hurt by both factors in the quarter.

After extremely strong broadband growth during the early days of the pandemic, Comcast is now experiencing slowing to negative growth in its broadband business due to new competition and less consumer moving activity along with headwinds on the programming side, where advertising budgets have been more stressed.”