In this article, we will look at the 9 Best Communication Stocks to Invest In.
On May 20, Renaissance Macro’s Jeff deGraaf appeared on CNBC’s ‘Closing Bell’ to talk about the trend for stocks, the macroeconomic picture, and its impact on equities, among other things.
He was of the view that the trend in stocks is still bullish, and that means that the path of least resistance is up. If we look at internal momentum, just as an example, the percentage of issues above their 20-day moving average is at 44%, which is a pretty low number for a market that is at or very near a new high. He further stated that if we look at the percentage of names making new highs versus new lows, they are actually in lockstep.
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Therefore, at a new high, that is a pretty unusual phenomenon, and so he believes that the trend is up, but the momentum is lagging, and that usually gives us that two steps forward, one step backward kind of market. Jeff further stated that this is not a runway market by any means, and they are going to be patient around some of the names that they think need to come in and consolidate.
With these broader market trends in view, let’s narrow down and look at the best communication stocks to invest in.
Our Methodology
We used the Finviz stock screener to identify the best communication stocks and selected the top 9 most popular among hedge funds as of Q4 2025, using the hedge fund sentiment data from Insider Monkey’s database. The stocks are arranged in ascending order of hedge fund sentiment.
Note: All data was recorded on May 20.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
9 Best Communication Stocks to Invest In
9. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 73
Verizon Communications Inc. (NYSE:VZ) is one of the best communication stocks to invest in. Verizon Communications Inc. (NYSE:VZ) announced on May 15 a partnership with Anthropic as a member of Project Glasswing, which is an initiative that aims at securing the world’s critical infrastructure for the AI era and was created after the announcement that Anthropic’s most advanced AI model, Claude Mythos Preview, is able to identify complex vulnerabilities in critical software and operating systems at unprecedented speed.
Management stated that the partnership bolsters Verizon Communications Inc.’s ability to identify and contain complex vulnerabilities while maintaining its standards of network protection. It further said that the company adheres to strict usage policies to ensure a safe and responsible evaluation of all emerging technologies, with each phase of the Mythos Preview testing process governed by rigorous safety standards.
In a separate development, Verizon Communications Inc. received a rating update from Erste Group on May 5, with the firm downgrading the stock to a Hold from Buy.
Verizon Communications Inc. provides communications, information, and entertainment services and products. Its operations are divided into the Consumer and Business segments. The Consumer segment manages consumer-focused wireline and wireless communication products and services. In contrast, the Business segment focuses on services and products such as data, FWA broadband, video and conference services, corporate networking solutions, and more.
8. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 76
T-Mobile US, Inc. (NASDAQ:TMUS) is one of the best communication stocks to invest in. T-Mobile US, Inc. (NASDAQ:TMUS) received several rating updates following the release of its financial results for Q1 on April 28. Scotiabank cut the price target on the stock to $263 from $266 on April 29, reiterating an Outperform rating on the shares and telling investors that it believes the company has responded well to increased promotional intensity. The firm considers the recent decline in T-Mobile US, Inc.’s stock as a good buying opportunity.
T-Mobile US, Inc. also received a rating update from BofA the same day. The firm lowered the price target on the stock to $220 from $270, maintaining a Neutral rating on the shares and stating that the company “wrapped up the theme of rational competition and lower device subsidies” for wireless carriers in Q1. However, it also stated that competitive intensity could flare back up with cable companies and wireless operators competing for a shrinking pool of net additions.
T-Mobile US, Inc. provides wireless communications services under the T-Mobile and MetroPCS brands. The company offers prepaid and postpaid wireless messaging, voice, and data services, along with wholesale wireless services.
7. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 77
AT&T Inc. (NYSE:T) is one of the best communication stocks to invest in. AT&T Inc. announced on May 18 the launch of eSim for international travelers visiting the United States, Canada, and Mexico in the upcoming month for the summer’s big soccer games. The company is introducing a unique travel package including unlimited data and 5GB of hotspot access, which would be expanded to unlimited talk and text soon. AT&T Inc. also announced a simplification of its eSIM offerings by offering flexible options to customers, including one-day passes in the United States only, as well as the ability to purchase wireless coverage only in the U.S. or across North America.
In a separate development, AT&T Inc. announced on May 14 a joint agreement with T-Mobile and Verizon to form a new JV aimed at helping end wireless dead zones in the United States, which includes rural areas. The JV plans to do so by pooling limited spectrum resources to raise capacity, enhance customer experience, and help satellite providers to reach more customers through a unified platform. Management reported that the JV remains subject to negotiations between the parties to reach definitive agreements, as well as to satisfying customary closing conditions.
AT&T Inc. provides telecommunications and technology services and operates through the Communications and Latin America segments. Its Communications segment offers wireline telecom, wireless, and broadband services in the US and globally, while the Latin America segment manages services in Mexico.
6. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Number of Hedge Fund Holders: 86
Warner Bros. Discovery, Inc. (NASDAQ:WBD) is one of the best communication stocks to invest in. UBS lifted the price target on Warner Bros. Discovery, Inc. (NASDAQ:WBD) to $31 from $30 on May 7, maintaining a Neutral rating on the shares. The firm told investors in a research note that streaming and studios are hitting their strides with the finish line nearing.
For reference, in its financial results for fiscal Q1 2026, Warner Bros. Discovery, Inc. reported total revenues of $8.9 billion, reflecting a 3% ex-FX decrease from the prior year quarter. Management reported that net loss available to the company was $2.9 billion, which included $1.3 billion of pre-tax acquisition-related amortization of intangibles, restructuring expenses, and content fair value step-up. In addition, the net loss available to the company included a $2.8 billion termination fee paid to Netflix. Warner Bros. Discovery, Inc. further reported total adjusted EBITDA of $2.2 billion for the quarter, which was relatively unchanged ex-FX compared to the prior year quarter.
Warner Bros. Discovery, Inc. is a global media and entertainment company that provides a differentiated portfolio of brands, content, and franchises across film, television, gaming, and streaming. The company’s operations are divided into the following segments: Studios, Networks, Direct-to-Consumer (DTC), and Corporate.
5. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 95
Comcast Corporation (NASDAQ:CMCSA) is one of the best communication stocks to invest in. Comcast Corporation (NASDAQ:CMCSA) received several rating updates following the release of its fiscal Q1 financial results. Deutsche Bank downgraded Comcast Corporation to Hold from Buy on April 24, bringing the price target on the stock down to $34 from $35.
The firm reduced the company’s 2027 EBITDA and free cash flow estimates after the fiscal Q1 earnings report, and told investors in a research note that it now sees limited upside in the shares. It believes that the company’s better-than-expected performance in fiscal Q1 will not be repeatable over the next few quarters, and thus sees current share levels as appropriate given its “muted” free cash flow and EBITDA growth outlook over the next few years. Deutsche also stated that it expects the “challenging competitive environment” for broadband to become even more challenging.
Comcast Corporation also received a rating update from RBC Capital the same day, with the firm lifting the price target on the stock to $32 from $31 while reiterating a Sector Perform rating on the shares following its Q1 results.
Comcast Corporation provides internet, video, and phone services. The company’s operations are divided into the following segments: Residential Connectivity and Platforms, Business Services Connectivity, Media, Studios, and Theme Parks.
4. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 113
The Walt Disney Company (NYSE:DIS) is one of the best communication stocks to invest in. Raymond James lifted the price target on The Walt Disney Company (NYSE:DIS) to $119 from $115 on May 7, reaffirming an Outperform rating on the shares and stating that the company delivered better-than-expected Q2 results and slightly raised FY26 EPS guidance to 12% growth. This bolsters confidence in a double-digit EPS CAGR through FY26-FY27, with strength supported by its strong franchise IP, resilient sports exposure, scaled streaming ecosystem, and robust Parks and Experiences cash flows.
Raymond James also told investors in a research note that operating income growth is being increasingly driven by streaming, even with Experiences remaining the largest profit contributor, and the 2H-weighted FY26 outlook coming into focus amid moderating macro concerns.
The same day, Wells Fargo cut the price target on The Walt Disney Company to $146 from $148, reaffirming an Overweight rating on the shares.
The Walt Disney Company operates an international family entertainment and media enterprise. The company owns and operates television and radio production, distribution, and broadcasting stations, amusement parks, direct-to-consumer services, and hotels. Its operations are divided into the following business segments: Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products.
3. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 146
Netflix, Inc. (NASDAQ:NFLX) is one of the best communication stocks to invest in. JPMorgan reiterated an Overweight rating on Netflix, Inc. (NASDAQ:NFLX) on May 14, setting a price target of $118. The rating update came after the company’s fourth annual advertising upfront, with the firm stating that it is positive on the company’s content strategy, reach, and improving advertising technology. It further told investors in a research note that Netflix, Inc.’s upfront announcements show progress towards building a scaled advertising strategy, and also reflect the view of Netflix becoming “Global TV”.
In a separate development, Reuters reported on May 11 that Netflix, Inc. was sued by Texas Attorney General Ken Paxton on the accusation that the company is spying on children and other consumers through non-consensual data collection, and has also designed its platform to be addictive through “dark patterns” to keep users watching, such as its autoplay features that begin a new show after one ends. A Netflix, Inc. spokesperson stated that the lawsuit “lacks merit and is based on inaccurate and distorted information”.
Netflix, Inc. provides entertainment services and also offers leisure-time activities, video gaming, entertainment video, and other sources of entertainment. Its operations are divided into the United States and International geographic segments.
2. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 256
Meta Platforms, Inc. (NASDAQ:META) is one of the best communication stocks to invest in. Reuters reported on May 12 that Meta Platforms, Inc. (NASDAQ:META) lost its fight against an Italian regulatory order that called for it to compensate publishers for the use of their news article snippets, with Europe’s top court deciding in favor of the Italian telecoms watchdog. Reuters further stated that the case highlights the “ongoing copyright battle” between creators and publishers and tech companies regarding the use of their work or newspaper articles for the purpose of AI training. This has resulted in litigation against companies for infringement, including OpenAI, Anthropic, and Meta.
For additional reference, in its fiscal Q1 2026 operational and other financial results, Meta Platforms, Inc. reported that Family’s daily active people were 3.56 billion on average for March 2026, reflecting an increase of 4% year-over-year. Revenue was $56.31 billion, up 33% year-over-year, while revenue on a constant currency basis would have increased by 29% year-over-year.
Meta Platforms, Inc. builds technological products that allow people to share, connect, grow businesses, and find communities. These products help people connect through personal computers, mobile devices, virtual reality (VR), mixed reality (MR) headsets, and wearables.
1. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 288
Alphabet Inc. (NASDAQ:GOOG) is one of the best communication stocks to invest in. Alphabet Inc. (NASDAQ:GOOG) announced on May 20 a partnership between Google Cloud and Thales, a global leader in high technologies, aimed at establishing a new sovereign cloud solution in Germany. Management stated that the agreement marks a notable step in meeting the German market’s demand for sovereign solutions that protect sensitive data from extraterritorial laws. It further reported that the solution will “live on dedicated infrastructure”, which will be operated and managed by a new German entity fully owned and controlled by Thales.
In a separate development, The Fly reported on May 18 that Bill Ackman wrote on the social media platform X that their sale of Google was “not a bet against the company”, as they are “very bullish long term on Alphabet Inc.”. Instead, in light of their finite capital base and current valuations, they used Google as a “source of funds” for Microsoft.
Alphabet Inc. is a holding company with segments including Google Services, Google Cloud, and Other Bets. The Google Services segment operates various services and products, including Android, Google Maps, Google Play, Chrome, Search, and YouTube.
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