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.
READ ALSO: 10 Semiconductor Stocks with Highest Upside Potential Right Now AND 15 Best Small Cap Stocks to Buy for 10x Potential.
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 (NYSE:VZ) 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. (NYSE:VZ) received a rating update from Erste Group on May 5, with the firm downgrading the stock to a Hold from Buy.
Verizon Communications Inc. (NYSE:VZ) 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 (NASDAQ:TMUS) stock as a good buying opportunity.
T-Mobile US, Inc. (NASDAQ:TMUS) 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. (NASDAQ:TMUS) 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. (NYSE:T) 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. (NYSE:T) 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. (NYSE:T) 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. (NYSE:T) 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. (NASDAQ:WBD) 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. (NASDAQ:WBD) 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. (NASDAQ:WBD) 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.
While we acknowledge the potential of WBD 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 WBD and that has 100x upside potential, check out our report about the cheapest AI stock.
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