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 TIM S.A. (NYSE:TIMB) 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 technician testing a consumer’s home device connected to the telecom service.
TIM S.A. (NYSE:TIMB)
Average Price Target Upside Potential According to Analysts: 36.61%
Number of Hedge Fund Holders: 16
TIM S.A. (NYSE:TIMB), also known as TIM Brasil, is a Brazilian telecommunications company that provides mobile and fixed telephony services, including voice calls, text messages, and internet access. It has more than 60 million mobile customers and about 180,000 kilometers of fiber optics across Brazil. TIM S.A. (NYSE:TIMB) is a leader in 4G coverage in the country and has a presence in 100% of the municipalities, including rural areas. It is also the pioneer of 5G technology in Brazil. TIMB ranks among the best communication stocks to buy according to analysts.
The company is strategically focused on improving its operational strategies and market position by expanding its 5G network and enhancing customer experiences. In the third quarter of 2024, TIM S.A. (NYSE:TIMB) significantly expanded its postpaid customer base by adding 709,000 new lines. This was driven by improved customer management and attractive postpaid offers that boosted customer loyalty and satisfaction.
Additionally, TIM S.A. (NYSE:TIMB) continues to expand 5G coverage across Brazil. By the end of September 2024, the company’s 5G services were available in 495 cities. TIM S.A.’s (NYSE:TIMB) strategic plan for 2024-2026 is aimed at growing the company’s service revenue at a compound annual growth rate (CAGR) of 4-6%.
Overall, TIMB ranks 7th 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 TIMB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
