In this article, we discuss the 5 best communication stocks to buy today. If you want to read about some more communication stocks to buy today, go directly to 12 Best Communication Stocks To Buy Today.
5. Charter Communications, Inc. (NASDAQ:CHTR)
Number of Hedge Fund Holders: 68
Charter Communications, Inc. (NASDAQ:CHTR) operates as a broadband connectivity and cable operator company serving residential and commercial customers in the United States. On November 2, Charter Communications said that Comcast and Charter Communications have named their streaming platform joint venture Xumo – repurposing the name of Comcast’s free ad-supported streaming service into a bigger ecosystem.
On October 31, Truist analyst Greg Miller maintained a Hold rating on Charter Communications, Inc. (NASDAQ:CHTR) stock and lowered the price target to $380 from $450, highlighting that the company’s third-quarter results were mixed as it reported high mobile net additions, though its legacy businesses are seen in perpetual decline.
At the end of the third quarter of 2022, 68 hedge funds in the database of Insider Monkey held stakes worth $3.4 billion in Charter Communications, Inc. (NASDAQ:CHTR), compared to 68 in the preceding quarter worth $5.7 billion.
In its Q3 2022 investor letter, Weitz Investment Management, an asset management firm, highlighted a few stocks and Charter Communications, Inc. (NASDAQ:CHTR) was one of them. Here is what the fund said:
“Liberty Broadband’s primary asset is a 26% stake in Charter Communications (NASDAQ:CHTR). Charter is not sitting still; the company is adapting via footprint expansion into underserved areas, price-advantaged mobile line growth, and so on. Charter’s hefty free cash flows are valuable in the hands of proven, astute capital allocators. Time will tell, but to paraphrase country music artist Merle Haggard, we do not yet think cable’s good times are really over for good.”
4. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 73
Comcast Corporation (NASDAQ:CMCSA) operates as a media and technology company worldwide. On October 28, Comcast Corporation (NASDAQ:CMCSA) posted earnings for the third quarter of 2022, reporting earnings per share of $7.38, missing market estimates by $0.91. The revenue over the period was $13.6 billion, up 3.5% compared to the revenue over the same period last year and missing market estimates by $70 million.
On October 28, Cowen analyst Gregory Williams maintained an Outperform rating on Comcast Corporation (NASDAQ:CMCSA) stock and lowered the price target to $49 from $51, highlighting that the company is aiming to extract ARPU, a risky strategy, but is also concentrating on Mobile Business Services and margins.
Among the hedge funds being tracked by Insider Monkey, New York-based firm First Eagle Investment Management is a leading shareholder in Comcast Corporation (NASDAQ:CMCSA) with 31.6 million shares worth more than $928 million.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Comcast Corporation (NASDAQ:CMCSA) was one of them. Here is what the fund said:
“Weakness among our holdings in the communication services sector was the other detractor to performance. Comcast Corporation (NASDAQ:CMCSA) was hurt by tepid subscriber growth in its broadband business but demonstrated strong growth in free cash flow, positioning the company for accelerated capital return going forward.”
3. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 100
T-Mobile US, Inc. (NASDAQ:TMUS) provides mobile communications services in the United States, Puerto Rico, and the United States Virgin Islands. On November 29, T-Mobile said that it has entered into an exclusive agreement with Telecom firm ExteNet Systems to deploy digital wireless infrastructure in large sports, entertainment, hospitality and transportation venues. The agreement is expected to deliver best-in-class wireless communication on commercial sites.
On November 15, Tigress Financial analyst Ivan Feinseth maintained a Buy rating on T-Mobile US, Inc. (NASDAQ:TMUS) stock and raised the price target to $202 from $195, highlighting that the company will acquire more customers and boost its income as it can better utilise its huge 5G high-speed network.
Among the hedge funds being tracked by Insider Monkey, Omaha, Nebraska-based investment firm Berkshire Hathaway is a leading shareholder in T-Mobile US, Inc. (NASDAQ:TMUS) with 5.2 million shares worth more than $703.3 million.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and T-Mobile US, Inc. (NASDAQ:TMUS) was one of them. Here is what the fund said:
“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 US, Inc. (NASDAQ:TMUS). 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.”
2. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 156
Alphabet Inc. (NASDAQ:GOOG) provides various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. The firm features on the list of best communications stocks since it provides social media platforms, hardware devices, and software services which people use to communicate across the world.
On November 30, Societe Generale analyst Christophe Cherblanc maintained a Buy rating on Alphabet Inc. (NASDAQ:GOOG) stock and lowered the price target to $132 from $147, highlighting that cost management has risen to the top of the priority list for technology investors.
At the end of the third quarter of 2022, 156 hedge funds in the database of Insider Monkey held stakes worth $19.3 billion in Alphabet Inc. (NASDAQ:GOOG), compared to 153 in the preceding quarter worth $22.3 billion.
In its Q3 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“In early January this year – which admittedly feels like eons ago – US President Joe Biden was pushing Americans to take up the government’s offer of free COVID tests to help tackle the surging omicron variant. How did Biden respond when citizens asked about the availability of these tests?
“Google it!”
This advice, undoubtedly well-meant, was roundly scoffed at by the press, however. It seemed too obvious to be very helpful.
Anyway, the anecdote serves to introduce you to one of our largest holdings, Alphabet; the parent company of Google. Note that first, Alphabet’s original and core product – its search engine – has entered our common vocabulary as a verb. ‘Googling’ something has the same meaning as ‘researching’ or ‘finding an answer to something. Second, the reason Biden’s advice was met with such opprobrium was that Googling something has become almost second nature to us now.
These two observations reveal a lot about Google’s strength in the search engine market, in which it has a share of over 90 percent. Because internet search is almost the prototypical network, Google has benefitted from – and we think is also protected by – the huge competitive advantage its scale brings – both to those asking the questions and those providing the answers. The Google search platform becomes increasingly useful to anyone seeking the information as a greater volume of stuff becomes available. This starts a virtuous cycle that results in a colossal market share for Google itself. In the language of business strategists, Google benefits from vast network effects.
Because Google’s search results are viewed by billions of eyeballs every day, its search page ‘real estate is understandably very valuable to those with goods and services to sell. Advertising revenues from this ‘real estate as well as that from its other properties such as Mail, Maps, and so on, totalled almost USD 150b in 2021; amounting to almost 58% of the company’s revenues. Ad sales on YouTube, also owned by Alphabet, brought in another USD 28b. With the secular shift of the advertising spend to digital channels – over which Alphabet has a tight grip – we estimate the company has a share of around 40% of the digital advertising market and is probably the most valuable advertising property in the world…read more
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 177
Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide. On September 20, the company announced that it was planning to integrate the WhatsApp messaging service, used by billions around the world for communication purposes, with the business services of Salesforce to help businesses chat directly with their customers. No other firm has as many customers that use their products for communication services. The company also has a low PE Ratio, adding to the value proposition of the stock. It is investing heavily in new tech like the metaverse as well, adding to the long-term allure of the shares. The company is trading at 11.65x earnings and 10.71x free cash flow and is slated for growth in the core social media business as it innovates, particularly through Reels that are competing with TikTok. The firm has a free cash-flow yield that is better than competitors.
On September 12, Piper Sandler analyst Thomas Champion maintained a Neutral rating on Meta Platforms, Inc. (NASDAQ:META) stock and lowered the price target to $175 from $190, noting that checks indicated app tracking transparency headwinds were significant for the firm.
At the end of the third quarter of 2022, 177 hedge funds in the database of Insider Monkey held stakes worth $14 billion in Meta Platforms, Inc. (NASDAQ:META), compared to 184 the preceding quarter worth $18 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:META) was one of them. Here is what the fund said:
“Shares of Meta Platforms, Inc. (NASDAQ:META), the owner of Facebook, the world’s largest social network, fell 28.4% during the second quarter due to quarterly results that missed consensus estimates, driven by the impact of Apple’s new privacy changes in its iOS operating system. These changes have made it harder for Facebook to measure the effectiveness of its advertising across its mobile apps.
In the longer term, we expect Facebook to continue utilizing its leadership in mobile to provide global advertisers targeted marketing capabilities at scale, with substantial monetization optionality ahead in newer areas such as Reels (Meta’s competing solution to TikTok) and e-commerce.”
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