13 Best Telecom Stocks to Buy According to Hedge Funds

9. Telephone and Data Systems Inc. (NYSE:TDS)

Number of Hedge Fund Holders: 36

Telephone and Data Systems Inc. (NYSE:TDS) is a telecom provider in the US that delivers wireless and wireline services. These include advanced IoT solutions, broadband internet, and cloud-based television. With a focus on both consumer and enterprise clients, it also extends critical connectivity and voice services, particularly in underserved regions.

The company is pivoting to a fiber-centric model. In 2024, the company exceeded its target by delivering 129,000 new fiber service addresses. It’s now aiming for 1.8 million marketable fiber addresses. The company intends to have 80% of its footprint served by fiber so it’s set a goal of delivering 150,000 new fiber service addresses in 2025. This is reflected in its customer adoption rates, with 81% of residential broadband customers opting for speeds of 100 meg or higher, and 22% choosing 1 gig or higher.

The company’s financial performance is tied to this fiber growth, with residential revenues increasing by 6% in 2024. It’s also utilizing internal construction crews to reduce fiber deployment costs by up to 30%. The company divesting copper markets and aims to reduce copper-served addresses to just 5% of its footprint over time. It’s also working towards having 95% of its footprint have access to 1 gig or higher speeds.