In this article, we discuss 5 best communication stocks to invest in. If you want to read about some more communication stocks, go directly to 12 Best Communication Stocks To Invest In.
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. It is one of the top communications stocks to invest in. On August 12, the company announced that it was phasing out the original content wing of the firm. The move brings an end to a four year-plus attempt to push into scripted shows and is aimed at helping hold back the tide of cable departures due to cord cutting.
On August 24, KeyBanc analyst Brandon Nispel maintained an Overweight rating on Charter Communications, Inc. (NASDAQ:CHTR) stock and raised the price target to $592 from $555, noting that despite weakness, the short sightedness of investors can be proven wrong.
At the end of the second quarter of 2022, 68 hedge funds in the database of Insider Monkey held stakes worth $5.7 billion in AT&T Inc. (NYSE:T), compared to 73 in the preceding quarter worth $8.5 billion.
In its Q2 2022 investor letter, Andvari Associates, an asset management firm, highlighted a few stocks and Charter Communications, Inc. (NASDAQ:CHTR) was one of them. Here is what the fund said:
“Regarding Liberty Broadband, Andvari has owned it for the last 7+ years primarily because of its large stake in cable company Charter Communications (NASDAQ:CHTR). Given that Liberty also traded at a wide discount to its own net asset value, Andvari saw this as an even cheaper way to own Charter. We sold Liberty because we saw (too slowly) a violation of one of the core parts to our investment thesis: pricing power at Charter was not as great as we imagined. Charter has not been able to raise prices in line with inflation. To add insult to injury, the trade association for the U.S. cable industry started proudly advertising about how internet price increases have remained far behind the rate of inflation.”
4. Comcast Corporation (NASDAQ:CMCSA)
Number of Hedge Fund Holders: 75
Comcast Corporation (NASDAQ:CMCSA) operates as a media and technology company worldwide. The firm is among the best communication stocks to invest in. On September 14, the company announced that it was boosting its share repurchase program to a total of $20 billion. The firm also revealed that the new authorization does not have an expiration date. So far this year, the media and technology company has repurchased $9 billion of Class A common stock.
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 30 million shares worth more than $1.2 billion.
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: 96
T-Mobile US, Inc. (NASDAQ:TMUS) provides mobile communications services. The company is one of the most prominent communication stocks to invest in. On September 19, the company announced that it had invested $304 million in Auction 108, a recent auction by the FCC for a 2.5 GHz spectrum. The carrier won 7,000 2.5 GHz licenses in areas covering 81 million people. The firm said it would immediately begin deploying the new mid-band spectrum for 5G once licenses are issued.
On September 9, Raymond James analyst Ric Prentiss maintained a Strong Buy rating on T-Mobile US, Inc. (NASDAQ:TMUS) stock and raised the price target to $178 from $175 as the firm announced a $14 billion stock repurchase program.
Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Viking Global is a leading shareholder in T-Mobile US, Inc. (NASDAQ:TMUS), with 9.2 million shares worth more than $1.2 billion.
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: 153
Alphabet Inc. (NASDAQ:GOOG) provides various technology products and platforms. The firm features on the list of best communications stocks to invest in. On September 22, the company officially launched the News Showcase publisher program in Spain. Google has spent over $1 billion on the program.
On August 3, Tigress Financial analyst Ivan Feinseth maintained a Strong Buy rating on Alphabet Inc. (NASDAQ:GOOG) stock and raised the price target to $186 from $183, highlighting the resiliency of the cloud and search business of the firm.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel investment Group is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG), with 3.1 million shares worth more than $6.9 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“Alphabet Inc. (NASDAQ:GOOG) is the parent company of Google, the world’s largest search and online advertising company. Shares of Alphabet declined 21.6% in the quarter due to concerns about slower global growth impacting the company’s core advertising business. We retain conviction in Alphabet’s merits as it continues to benefit from growth in mobile and online video advertising, which accrues to its core assets of search, YouTube, and the Google ad network. We are further encouraged by Alphabet’s investments in Cloud, AI, and Autonomous Driving (through its Waymo subsidiary).”
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share content with friends and family through mobile devices, personal computers, virtual reality headsets, wearables, and in-home devices worldwide. The firm features on the list of best communications stocks to invest in. On September 20, the company announced that it was planning to integrate the WhatsApp messaging service with the business services of Salesforce to help businesses chat directly with their customers.
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 second quarter of 2022, 184 hedge funds in the database of Insider Monkey held stakes worth $18.2 billion in Meta Platforms, Inc. (NASDAQ:META), compared to 200 the preceding quarter worth $19.3 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.”
You can also take a peek at Best Cloud Stocks To Buy and Best Biotech Stocks Under $10.
