In this article we will take a look at the 5 best telecom stocks to buy right now. For a detailed analysis of the telecom industry, go directly to 10 Best Telecom Stocks to Buy Right Now.
5. Comcast Corporation (NASDAQ: CMCSA)
Number of hedge fund holders: 84
Comcast Corporation (NASDAQ: CMCSA) is a Philadelphia-based technology corporation that has interests in the cable communications, cable networks, broadcast television, and telecom businesses. The products that the firm offers include high-speed Internet, video, voice, wireless, and security and automation services to residential and business customers. The company was founded in 1963 and is placed fifth on our list of the 10 best telecom stocks to buy right now.
Comcast has a market cap of close to $250 billion and posted close to $104 billion in annual revenue in December 2020, down slightly $108 billion the year before. On April 16, investment banking firm Raymond James upgraded Comcast stock to Outperform rating with a price target of $61. The bank said the reopening of the economy would help the firm as it operated theme parks and theaters.
At the end of the fourth quarter of 2020, 84 hedge funds in the database of Insider Monkey held stakes worth $8.8 billion in the firm, up from 82 in the preceding quarter worth $8.1 billion.
4. AT&T Inc. (NYSE: T)
Number of hedge fund holders: 58
AT&T Inc. (NYSE: T) is a Texas-based technology firm with significant stakes in the telecommunication and media industries. The firm markets wireless voice and data communications services; video and targeted advertising; broadband, and wireline telecom. The company is in partnership with HBO to operate the channel’s video-on-demand and digital streaming services. AT&T was founded in 1983 and is placed fourth on our list of the 10 best telecom stocks to buy right now.
On April 22, the share price of the firm was up 5.1% compared to the same time the previous year on the back of positive streaming and wireless results. Financial advisory firms Citi and Evercore were bullish on the telecom company stock with price targets of $34 and $32 respectively.
Out of the hedge funds being tracked by Insider Monkey, Los Angeles-based investment firm Leonard Green & Partners is a leading shareholder in the firm with 18 million shares worth more than $517 million.
3. American Tower Corporation (NYSE: AMT)
Number of hedge fund holders: 61
American Tower Corporation (NYSE: AMT) is a Boston-based real estate investment trust that runs wireless and broadcast communications infrastructure in several countries. It owns and operates more than 181,000 communication sites and has operations in the US, Europe, Africa, Asia, and Latin America. It is one of the Fortune 500 companies, a list of the 500 largest firms in the US. American Tower has a market cap of more than $112 billion and posted more than $8 billion in annual revenue in December 2020.
It is placed third on our list of the 10 best telecom stocks to buy right now. As one of the largest cell phone tower operators in the US, the firm is expected to benefit from a proposed plan of President Biden to upgrade communication infrastructure in the country. On April 12, financial advisory Jefferies retained the positive coverage on the company stock and identified it as one of the top picks for the quarter on the back of 5G and dish network expansions.
At the end of the fourth quarter of 2020, 61 hedge funds in the database of Insider Monkey held stakes worth $4 billion in the firm.
2. T-Mobile US, Inc. (NASDAQ: TMUS)
Number of hedge fund holders: 103
T-Mobile US, Inc. (NASDAQ: TMUS) is a Washington-based telecom firm that operates primarily in the United States. It has more than 100 million mobile customers. It markets wireless devices, including smartphones, wearables, and tablets and other mobile communication devices. The firm runs almost 108,000 macro towers and 69,000 small antenna system sites; in addition to 3,400 T-Mobile and Metro retail locations. It was founded in 1994 and is placed second on our list of the 10 best telecom stocks to buy right now.
On April 19, investment advisory Deutsche Bank upgraded the price target on T-Mobile stock to $185 from $155, a 40% upside, saying it expected the company to grow at a compound annual rate of 14% over the next three years. Bryan Kraft, an analyst at the bank, said the firm was in the early days of creating value through the takeover rival Sprint last year.
Out of the hedge funds being tracked by Insider Monkey, Greenwich-based investment firm Viking Global is a leading shareholder in the firm with 8.7 million shares worth more than $1.1 billion.
1. Verizon Communications (NYSE: VZ)
Number of hedge fund holders: 67
Verizon Communications (NYSE:VZ) is a New York-based multinational telecom firm that also has stakes in the technology, information, and entertainment service businesses. The firm provides wireless internet for mobiles and laptops, as well as fixed connectivity solutions, including internet, video, and voice services. The company has more than 94 million wireless retail connections, 7 million broadband connections, and 4 million Fios video connections. It was founded in 1983 and is placed first on our list of the 10 best telecom stocks to buy right now.
On April 15, investment advisory Truist Securities named Verizon as one of the top picks for the quarter as a leading presence in the in-home broadband market. The advisory also said that Verizon stock was underperforming and would benefit from a proposed US government plan to spend $100 billion on communications infrastructure in the next few years.
At the end of the fourth quarter of 2020, 67 hedge funds in the database of Insider Monkey held stakes worth $10 billion in the firm, up from 65 in the previous quarter having shares worth $2.7 billion.
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