12 Best Telecom Stocks To Invest In Now

3. Verizon Communications Inc. (NYSE:VZ)

Number of Hedge Fund Holders: 57

Verizon Communications Inc. (NYSE:VZ) is a global provider of communication, technology, and entertainment services. Operating through its Consumer and Business segments, it offers a range of products and services, including wireless, wireline, FWA broadband, IoT solutions, and more. The company serves consumers, businesses, and government entities with a focus on delivering innovative and reliable solutions.

The company has demonstrated strong success in the fixed wireless access market, surpassing the initial target of 4-5 million subscribers 15 months ahead of schedule, as of Q3 2024. Verizon Communications Inc. (NYSE:VZ) plans to double its fixed wireless subscriber base to 8-9 million by 2028.

This goal will be achieved through a multi-pronged strategy that includes aggressive deployment of C-Band and millimeter wave technologies to enhance coverage and capacity, the introduction of innovative solutions to serve multi-dwelling units with high-speed internet, and continuous R&D investments.

Third Point Management stated the following regarding Verizon Communications Inc. (NYSE:VZ) in its Q3 2024 investor letter:

“While some economic activity has been showing signs of slowing, the defensive composition of the current high yield market with a high mix of higher quality credit and short duration has let the rates tailwind overwhelm such concerns. The lowest quality sectors of the market have performed best, fueled by both soft/no landing expectations, as well as two positive events in the beleaguered telecom space. Telecom/cable have been poor performers year to date due to overhang from the growth of FWA (aka “wireless cable”) and increased fiber building, however the sector re-rated materially on two deals. Second, Verizon Communications Inc. (NYSE:VZ) announced a deal to acquire Frontier Communications (FYBR), a transaction which the fund benefited from by virtue of its investment in FYBR debt. This transaction, aimed at increasing’s VZ fiber footprint, has led to broad revaluation of fiber retail networks that we think is appropriate. While we continue to expect to see FWA rapidly erode non-upgraded cable and especially copper’s share of the low-end broadband market, the VZ deal underscores the value of the higher end footprint.”