5 Best Communication Services Stocks To Invest In

1. T-Mobile US, Inc. (NASDAQ:TMUS)

Number of Hedge Fund Holders: 100

T-Mobile US, Inc. (NASDAQ:TMUS) was founded in 1994 and is headquartered in Bellevue, Washington. The company provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. On January 4, T-Mobile US, Inc. (NASDAQ:TMUS) announced that it added 6.4 million total postpaid customers in 2022, which topped expectations, and also added 2 million new high speed Internet customers during the year. It is one of the top communication stocks to monitor. 

On January 5, T-Mobile US, Inc. (NASDAQ:TMUS) preannounced robust customer results for Q4, with the improved postpaid phone performance supported by very low churn despite some gross ad weakness, JPMorgan analyst Philip Cusick wrote in a research note. T-Mobile US, Inc. (NASDAQ:TMUS) is the analyst’s best long-term idea across his coverage and favorite communications services stock. He reiterated an Overweight rating on the shares with a $200 price target.

According to Insider Monkey’s data, 100 hedge funds were bullish on T-Mobile US, Inc. (NASDAQ:TMUS) at the end of Q3 2022, compared to 96 funds in the preceding quarter. Warren Buffett’s Berkshire Hathaway is the leading stakeholder of the company, with 5.2 million shares worth $703.3 million. 

In its Q4 2021 investor letter, ClearBridge Investments shared its stance on T-Mobile US, Inc. (NASDAQ:TMUS):

“As mentioned, the communication services sector has come under some pressure, and irrational pricing competition has negatively impacted wireless industry growth and profitability of late, weighing on T-Mobile. Faced with these headwinds, and with pressure from other wireless carriers and cable companies that could cause the company to cede share in subscriber growth in 2022, we exited our position in the fourth quarter.”

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