5 Best Communication Stocks To Buy Now

In this article, we will be taking a look at the 5 best communication stocks to buy now. To read our detailed analysis of the communications sector, you can go directly to see the 11 Best Communication Stocks to Buy Now.

5. Comcast Corporation (NASDAQ:CMCSA)

Number of Hedge Fund Holders: 72

Comcast Corporation (NASDAQ:CMCSA) is a cable and satellite company. It is based in Philadelphia, Pennsylvania.

An Outperform rating was reiterated on Comcast Corporation (NASDAQ:CMCSA) shares on January 27 by analyst Gregory Williams at Cowen.

Comcast Corporation (NASDAQ:CMCSA) has raised its dividend yield for the past 15 years and has a yield of 3.14% as of March 22. According to TipRanks, analysts on Wall Street placed an average price target of $44.24 on the shares, which were trading at $36.99 on March 22nd. This gives the shares an upside potential of 19.6%.

At the end of the fourth quarter, 72 hedge funds were long Comcast Corporation (NASDAQ:CMCSA). Their total stake value was $3.7 billion.

ClearBridge Investments, an investment management firm, mentioned Comcast Corporation (NASDAQ:CMCSA) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“That balance served the Strategy well throughout the year, enabling outperformance against the benchmark in all four quarters. Results in the last three months were driven by a long-time media position in Comcast Corporation (NASDAQ:CMCSA), which we consider a durable compounder due to its consistent revenue growth and free cash flow generation. Comcast shares saw a snapback after a difficult first half of the year caused by cord cutting in its cable business and slowing subscriber growth in its broadband business. A flexible balance sheet and strong cash generation enabled the company to repurchase shares during the selloff earlier in the year.”

4. Charter Communications, Inc. (NASDAQ:CHTR)

Number of Hedge Fund Holders: 74

Charter Communications, Inc. (NASDAQ:CHTR) is a communication services company based in Stamford, Connecticut. The company offers broadband connectivity and cable operations in residential and commercial areas in the US.

Kutgun Maral at RBC Capital holds an Outperform rating on Charter Communications, Inc. (NASDAQ:CHTR) shares as of January 31.

In the fourth quarter, Charter Communications, Inc. (NASDAQ:CHTR) saw its internet revenues rise by 3.9% year-over-year while mobile revenues rose by 38.6% year-over-year. Analysts on Wall Street consider the stock to be a Moderate Buy, and have placed an average price target of 36.44% on the shares, according to TipRanks. Considering that Charter Communications, Inc. (NASDAQ:CHTR) was trading at $352.29 on March 22, this price target represents an upside potential of 36.44%.

Our hedge fund data for the fourth quarter shows 74 funds long Charter Communications, Inc. (NASDAQ:CHTR), with a total stake value of $4.6 billion.

ClearBridge Investments, an investment management company, mentioned Charter Communications, Inc. (NASDAQ:CHTR) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“Cable stocks have been pressured for the past year as broadband growth has slowed following a pull forward of demand during the pandemic and the industry faces rising competition from wireless carriers offering fixed wireless access. In particular, shares of Charter Communications, Inc. (NASDAQ:CHTR) were pressured by its recently announced multiyear capex plan to accelerate network upgrades. While this reduces free cash flow available for buybacks in the medium term, it sustains the company’s competitive advantage and should accelerate long term growth. The company also has ambitious goals to expand its footprint into adjacent and rural markets, taking advantage of the federal and state broadband subsidies. We added opportunistically to Charter on the pullback.”

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

Number of Hedge Fund Holders: 94

T-Mobile US, Inc. (NASDAQ:TMUS) is a provider of mobile communications services in the US, Puerto Rico, and the US Virgin Islands. The company is based in Bellevue, Washington.

On 16 March, Morgan Stanley’s Simon Flannery reiterated an Overweight rating on T-Mobile US, Inc. (NASDAQ:TMUS) shares.

In the fourth quarter, T-Mobile US, Inc. (NASDAQ:TMUS) revenues came in at $20.27 billion. According to TipRanks, analysts at Wall Street see the stock as a Strong Buy, with about 12 Buy ratings on the shares and two Hold ratings. The average price target on the shares is $181.75. T-Mobile US, Inc. (NASDAQ:TMUS) was trading at $144.67 on March 22, and this gives the shares an upside potential of 25.63%.

There were 94 hedge funds long T-Mobile US, Inc. (NASDAQ:TMUS) in the fourth quarter. Their total stake value was $3.7 billion.

2. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 117

Netflix, Inc. (NASDAQ:NFLX) is a movies and entertainment company operating in the communication services sector. It is based in Los Gatos, California.

Jason Bazinet at Citigroup holds a Buy rating on Netflix, Inc. (NASDAQ:NFLX) shares as of March 16.

As of this March, Netflix, Inc. (NASDAQ:NFLX) has about 230 million paid memberships on its streaming platform in over 190 countries. In 2022, the company increased its revenues to $31.6 billion, representing a growth rate of 6.5% year-over-year. According to TipRanks, analysts on Wall Street see the stock as a Moderate Buy, with 17 Buy ratings and 16 Hold ratings.

Out of the 943 hedge funds tracked in the fourth quarter, 117 funds were long Netflix, Inc. (NASDAQ:NFLX). Their total stake value was $8.1 billion.

ClearBridge Investments, an investment management company, mentioned Netflix, Inc. (NASDAQ:NFLX) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“Netflix, Inc. (NASDAQ:NFLX) is another earnings reset name that has taken decisive actions, developing an ad-supported subscription tier and cracking down on password sharing, that have helped its shares rerate strongly. On an individual stock basis, positions in Broadcom, Visa, Netflix, Nike and Comcast were the leading contributors to absolute returns during the period.

1. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 194

Meta Platforms, Inc. (NASDAQ:META) is an interactive media and services company operating in the communication services sector. It is based in Menlo Park, California.

On March 21, Meta Platforms, Inc. (NASDAQ:META) shares were upgraded from Equal Weight to Overweight by Morgan Stanley analysts.

In the fourth quarter, Meta Platforms, Inc. (NASDAQ:META) generated revenues of $32.2 billion. According to TipRanks, analysts on Wall Street have placed an average price target of $226.75 on the shares, which were trading at $202.16 on March 22. This represents an upside potential of 12.16%.

Meta Platforms, Inc. (NASDAQ:META) was found among the 13F holdings of 194 hedge funds in the fourth quarter, with a total stake value of $15.6 billion.

Weitz Investment Management, an investment management firm, mentioned Meta Platforms, Inc. (NASDAQ:META) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“Unfortunately, the performance story of the year is told by the Fund’s detractors. We’ve written at length in prior quarters about Meta Platforms, Inc. (NASDAQ:META)’s struggles to adapt both to changes in Apple’s iOS platform, as well as pivots to new formats like short-form video (Reels) and platform investments in the metaverse that have dragged shares lower all year.

Meta, Alphabet, Amazon and CarMax were all top detractors for the quarter and calendar year periods (FIS and Liberty Broadband, respectively, complete the quarterly and calendar-year detractor lists.) To varying degrees, each is managing through cyclical challenges during a period of substantial investor pessimism. Drawdowns of this magnitude are painful, and it may be prudent for management to moderate the pace of some investments, but we remain encouraged by their long-term focus. In the short run, cutting spending indiscriminately to “defend earnings” may lessen the pain of a drawdown, but it seldom grows a company’s business value — the ultimate prize. We added to both CarMax and Meta on weakness, and all four remain core holdings.”

See also 13 Best Communication Services Stocks To Invest In and 12 Best Communication Stocks To Buy Now.