Earlier on June 25, Vince Valentini, Managing Director and Equity Research at TD Cowen, joined BNN Bloomberg to discuss how investor sentiment toward telecom is improving. Valentini began by explaining that the Canadian telecom sector, in particular, has been weak over the past 2 years due to a price war and balance sheet struggles. As a result, investors have been playing defense. But he stated that the industry is starting to show signs of a turnaround. Specifically for wireless, he says there are green shoots of more pricing discipline. He estimated that ~60% to 65% of Canadian wireless customers had already repriced to a lower rate, which suggested that a lot of the pain is almost done.
Grand View Research reported that the global telecom services market was valued at ~$1,983.08 billion in 2024. This is expected to reach ~$2,874.76 billion by 2030 at a CAGR of 6.5% from 2025 to 2030. Despite telecom stocks increasing by about 11% in 2024, the number lagged behind the S&P 500’s 25% and NASDAQ’s 30% gains, which prompted telecom CEOs to seek new avenues for higher stock valuations. However, it’s also important to recognise that the industry has historically oscillated between high-growth and slow-but-steady periods, with average global dividend yields of about 4%. It is now projected to focus on cost-cutting, capital expenditure control, monetizing past investments, and strategic M&A through 2030.
That being acknowledged, we’re here with a list of the 8 most undervalued telecom stocks to invest in.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the top undervalued telecom stocks with a forward P/E ratio under 20, as of September 8. We then selected the 8 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q2 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
8 Most Undervalued Telecom Stocks to Invest In
8. SurgePays Inc. (NASDAQ:SURG)
Forward P/E Ratio as of September 8: 9.23
Number of Hedge Fund Holders: 2
SurgePays Inc. (NASDAQ:SURG) is one of the most undervalued telecom stocks to invest in. On August 28, SurgePays announced the complete deployment of its ClearLine SaaS platform across all 17 Market Basket Food Stores in North Carolina. The initiative marks a key milestone in SurgePays’ strategy to generate recurring, high-margin SaaS revenue through a nationwide rollout of its retail media solution.
The ClearLine platform transforms mounted flat screens into retail media hubs that can display video ads, dynamic promotions, coupons, and QR codes in real-time. The technology is designed to engage shoppers, foster brand loyalty, and create new advertising revenue streams for retailers.
The company’s future goal includes using AI to power marketing decisions based on factors such as the day, time of day, inventory, and marketing budgets. The ClearLine software now allows for the easy upload and real-time management of content.
SurgePays Inc. (NASDAQ:SURG) is a financial technology and telecom company in the US. It has 2 segments: Mobile Virtual Network Operator/MVNO Telecommunications and Comprehensive Platform Services.
7. SK Telecom Co. Ltd. (NYSE:SKM)
Forward P/E Ratio as of September 8: 9.85
Number of Hedge Fund Holders: 8
SK Telecom Co. Ltd. (NYSE:SKM) is one of the most undervalued telecom stocks to invest in. On September 8, Aduna, which is a global aggregator of network APIs, announced a new commercial partnership with SK Telink, which is a subsidiary of SK Telecom. The 2 companies have signed an MoU to expand developer access to standardized telecom APIs and accelerate their adoption globally.
The collaboration will help integrate Korea into the global network API ecosystem. The partnership uses the CAMARA open-source project and aims to simplify how developers interact with network functions. By combining Aduna’s unified integration platform with SK Telecom’s advanced infrastructure and digital expertise, with SK Telink leading the commercialization strategy, the companies will drive cross-operator alignment and deployment of programmable telecom capabilities.
Initially, the focus will be on high-value security and identity services, including Number Verification, SIM Swap detection, and Know Your Customer/KYC, which are crucial for preventing fraud and enhancing digital trust in sectors like banking and fintech.
SK Telecom Co. Ltd. (NYSE:SKM) provides wireless telecommunication services in South Korea. It has 3 segments: Cellular Services, Fixed-Line Telecommunications Services, and Other Businesses.
6. Telefónica (NYSE:TEF)
Forward P/E Ratio as of September 8: 16.95
Number of Hedge Fund Holders: 8
Telefónica (NYSE:TEF) is one of the most undervalued telecom stocks to invest in. On September 8, Telefonica CEO Marc Murtra outlined his vision for a consolidated European telecoms market, stating that the company is looking to acquire telecom assets in Europe and Brazil while selling off its Spanish-speaking Latin American assets.
The strategy is part of a broader plan to increase scale and maintain the company’s investment-grade credit rating. Murtra argues that Europe’s telecom market is too fragmented, with 41 companies serving over 500K mobile customers each in 2024, compared to only 5 in the US, 4 in China and Japan, and 3 in South Korea. He believes that in exchange for consolidation, European telecom companies should invest in other related sectors, such as cybersecurity and data centers, as part of a social contract with regulators.
To gain financial flexibility for M&A, Telefonica has agreed to sell its units in Argentina and Uruguay and is exploring potential sales in Chile, Mexico, and Ecuador. Analysts at Kepler believe these sales could provide up to 3.6 billion euros ($4.21 billion) in funding. Potential acquisition targets for Telefonica could include Vodafone Spain, a joint venture with 1&1 in Germany, assets in Brazil, or a 50% stake in Virgin Media O2.
Telefónica (NYSE:TEF) provides telecommunications services in Europe and Latin America. The company offers mobile & related services and products.
5. Rogers Communications Inc. (NYSE:RCI)
Forward P/E Ratio as of September 8: 10.07
Number of Hedge Fund Holders: 15
Rogers Communications Inc. (NYSE:RCI) is one of the most undervalued telecom stocks to invest in. On August 28, Rogers Communications introduced a new streaming bundle called Rogers Xfinity StreamSaver. The plan combines 3 popular streaming services: Netflix, Disney+, and Apple TV+, into a single subscription. The bundle is designed to provide customers with more value and an easier way to access content.
Rogers Xfinity StreamSaver offers customers monthly savings of more than 30% compared to subscribing to each service individually. The services are seamlessly integrated on the Rogers Xfinity entertainment platform, which includes an award-winning voice remote, allowing users to search and watch across all streaming apps without having to switch between them.
Customers can add the StreamSaver bundle to their existing Rogers Xfinity Internet and select TV plans. They also have the option to add a Rogers Xfinity Stream Box for a more integrated viewing experience. For those seeking even more content and savings, Sportsnet+ can also be added to the bundle.
Rogers Communications Inc. (NYSE:RCI) is a communications and media company in Canada. It has 3 segments: Wireless, Cable, and Media.
4. BCE Inc. (NYSE:BCE)
Forward P/E Ratio as of September 8: 12.39
Number of Hedge Fund Holders: 24
BCE Inc. (NYSE:BCE) is one of the most undervalued telecom stocks to invest in. On August 22, CIBC analyst Stephanie Price raised the firm’s price target on BCE to C$36 from C$35, while keeping a Neutral rating on the shares. This sentiment came after the company reported its Q2 2025 earnings, reporting a mix of revenue growth, strategic business achievements, and financial pressures.
The company’s revenue increased by 2.28% year-over-year in Q2 to reach $4.43 billion, primarily due to BCE’s fiber strategy and growth in premium wireless subscribers.
The acquisition of Ziply Fiber was completed ahead of schedule, which expanded BCE’s fiber footprint by 1.4 million locations and made it the third-largest fiber Internet provider in North America. Ziply’s EBITDA is now projected to grow by over 20% in 2025. BCE’s self-install program has also been a success, with over 1 million self-installs since 2022.
BCE Inc. (NYSE:BCE) is a communications company that provides wireless, wireline, internet, streaming services, and television services to residential, business, and wholesale customers in Canada.
3. T-Mobile US Inc. (NASDAQ:TMUS)
Forward P/E Ratio as of September 8: 18.38
Number of Hedge Fund Holders: 76
T-Mobile US Inc. (NASDAQ:TMUS) is one of the most undervalued telecom stocks to invest in. On September 4, T-Mobile announced an update on its business transformation initiatives and provided revised guidance following the closure of its acquisition of UScellular. The $4.4 billion deal, which was finalized on August 1, included the acquisition of UScellular’s wireless operations, including customers, stores, and 30% of its spectrum assets.
T-Mobile increased its total annual run-rate synergy expectations from the UScellular acquisition by 20%, from the original $1.0 billion to ~$1.2 billion. This new target is comprised of ~$950 million in operating expenses and ~$250 million in capital expenses. Additionally, the company is accelerating the integration timeline, now expecting to achieve these synergies in ~2 years, a faster pace than the initial 3 to 4-year expectation.
For Q3 2025, T-Mobile anticipates the acquisition will result in several financial impacts. The company expects ~$400 million in service revenue and about $125 million in Core Adjusted EBITDA. The company also anticipates ~$100 million in integration costs and about $175 million in depreciation and amortization expenses. Additionally, the acquisition of UScellular’s lower Postpaid ARPA customer base, along with customers from the Metronet joint venture, is expected to impact T-Mobile’s consolidated Postpaid ARPA by ~$1.50 in Q3.
T-Mobile US Inc. (NASDAQ:TMUS) provides wireless communications services in the US, Puerto Rico, and the United States Virgin Islands.
2. Comcast Corporation (NASDAQ:CMCSA)
Forward P/E Ratio as of September 8: 7.42
Number of Hedge Fund Holders: 82
Comcast Corporation (NASDAQ:CMCSA) is one of the most undervalued telecom stocks to invest in. On August 28, Comcast, NBCUniversal, and Amazon announced a series of new and extended distribution agreements. These deals expand entertainment options for customers of Prime Video, Peacock, Fire TV, and Xfinity X1.
A key new development is the ability for Prime Video customers to subscribe to Peacock Premium Plus, Peacock’s ad-free tier, as a channel. The subscription costs $16.99 per month or $169.99 per year. The companies also renewed several existing partnerships. A multi-year renewal agreement ensures that the Peacock app will remain available on Amazon’s Fire TV devices.
Another extended agreement means that films from Universal Pictures Home Entertainment, including titles like Jurassic World Rebirth and How to Train Your Dragon, will continue to be available for purchase or rental on Prime Video. Additionally, Prime Video’s extensive library will remain accessible to Xfinity TV customers.
Comcast Corporation (NASDAQ:CMCSA) is a media and technology company worldwide that operates through Residential Connectivity & Platforms, Business Services Connectivity, Media, Studios, and Theme Parks segments.
1. AT&T Inc. (NYSE:T)
Forward P/E Ratio as of September 8: 12.95
Number of Hedge Fund Holders: 83
AT&T Inc. (NYSE:T) is one of the most undervalued telecom stocks to invest in. On September 4, Camp Fire and AT&T announced an expanded collaboration to bridge the digital divide and empower young people with essential life and technology skills. The collaboration is supported by a $750K contribution from AT&T and is expected to impact over 40K young people across 13 states.
The announcement comes ahead of significant anniversaries for both organizations in 2026: AT&T’s 150th and Camp Fire’s 116th. The expanded partnership will focus on 6 key program areas, with a focus on high-quality STEM education and digital literacy. The programs include Bridging the STEM Divide, Teen Leadership Pathways, Youth Well-being in the Digital Age, Absolutely Incredible Kid Day 2026 (#KidDay), Storytelling, and Expanding Partnerships.
The collaboration will support 19 affiliates in 13 states. Key goals for this expanded phase of the partnership include reaching 2,500 new youth with hands-on STEM learning in robotics and digital literacy, and supporting 500 youth through Teen Leadership Pathways with workforce development and career readiness opportunities. The initial phase of the partnership provided over 10,000 young people and their families with skills and connections for the digital age through workshops and STEM programs implemented in over 150 different schools.
AT&T Inc. (NYSE:T) provides telecommunications and technology services worldwide. The company operates through 2 segments: Communications and Latin America.
While we acknowledge the potential of T to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than T and that has 100x upside potential, check out our report about this cheapest AI stock.
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