We recently published a list of 11 Best Communication and Media Stocks to Buy According to Analysts. In this article, we are going to take a look at where Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK) stands against other best communication and media stocks to buy according to analysts.
The communication and media sectors play a crucial role in connecting people and distributing information. These sectors are becoming increasingly significant in the modern economy and society. As technology advances, both the communication and media industries are expected to experience strong growth in the foreseeable future.
According to a report by The Business Research Company, the global media market alone was valued at $2.61 trillion in 2024. The market is expected to grow at a compound annual growth rate (CAGR) of 7.7% during 2025-2029 to reach a value of $2.83 trillion by the end of the forecast period. In 2024, North America was the largest region in the global media market.
READ ALSO: 10 Best 5G Stocks to Invest in According to Analysts and 10 Best Low Priced Technology Stocks To Buy Now.
Another report from The Business Research Company shows that the global telecommunication market was estimated to have a value of $2.98 trillion in 2024. The market is expected to grow at a CAGR of 5.6% from 2025 to 2029 and reach above $3.93 trillion by the end of this period. In 2024, Asia-Pacific held the largest share of the global media market while North America was the second largest region.
Recent trends indicate a shift towards new and advanced technologies like 5G and the Internet of Things (IoT). According to PwC’s Global Telecom Outlook 2023-2027, telecom companies are expected to make significant investments in the infrastructure to better serve customers. As the shift towards 5G technology progresses and the demand for new technological standards rises, telecom companies are projected to invest $342.1 billion in their networks in 2027 alone.
PwC’s inaugural Global Telecom Outlook notes that telecom companies might need to change their strategies in a competitive environment and look for new growth opportunities in areas such as IoT solutions, private 5G networks for business customers, and fixed wireless home broadband for households. In some markets, these companies can also provide digital infrastructure, data, content, and platform services customized to the needs of various industries like entertainment and media, healthcare, and manufacturing. To stay competitive in this changing market, telecom companies must become more comfortable operating within broader ecosystems and looking beyond traditional services.
Methodology
To compile our list of the 11 best communication and media stocks to buy according to analysts, we looked for the largest media and communication companies. We reviewed our own rankings, financial media reports, and various online resources to compile a list of the best communication and media stocks. Next, we focused on the top communication and media stocks that analysts believe have the most potential for growth. We ranked the 11 best communication and media stocks to invest in based on their average price target upside potential according to analysts as of January 29, 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A powerful aerial view of the company’s data center, exemplifying the digital services and informatics being offered.
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK)
Average Price Target Upside Potential According to Analysts: 38.07%
Number of Hedge Fund Holders: 7
Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK), also simply known as PT Telkom Indonesia (Persero) Tbk, is an Indonesian multinational telecommunications corporation. The government of Indonesia is the majority owner of Telkom Indonesia’s shares. The company owns a number of businesses that operate in various sectors including fixed-line telephony, internet, multimedia, digital telecommunications, and information and communication technology. According to analysts, PT Telkom Indonesia (Persero) Tbk (NYSE:TLK) is one of the best communication stocks to invest in.
The company plays a crucial role in the country’s digital transformation and has positioned itself well to benefit from the smart city trend in Indonesia. Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK) covers more than 500 cities and regencies in Indonesia to support the government’s digitization initiatives. In terms of network availability, the company’s 4G service reaches about 97% of the population, supported by a robust infrastructure that includes 265,000 base transceiver stations (BTS) and the most extensive fiber optic network in Indonesia.
Additionally, PT Telkom Indonesia (Persero) Tbk (NYSE:TLK) is looking to capitalize on the high demand for data centers in Singapore by expanding its data center capabilities. As of October 2024, the company has a capacity of 42 MW, which the company plans to increase to 60 MW through the development of a hyperscale data center in Cikarang, Indonesia. PT Telkom Indonesia (Persero) Tbk (NYSE:TLK) believes that the overseas data center business could become a revenue generator in the future.
Overall, TLK ranks 5th on our list of best communication and media stocks to buy according to analysts. While we acknowledge the potential of communication and media companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TLK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
