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 United States Cellular Corporation (NYSE:USM) 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.
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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 working on a handset in a laboratory setting, highlighting the top-level technology used by the telecommunications company.
United States Cellular Corporation (NYSE:USM)
Average Price Target Upside Potential According to Analysts: 33.23%
Number of Hedge Fund Holders: 21
United States Cellular Corporation (NYSE:USM) is an American mobile network operator that provides a comprehensive range of wireless products and services and a strong, reliable network. With 4.5 million retail connections in 21 states, it is one of the largest full-service wireless carriers in the US. United States Cellular Corporation (NYSE:USM) owns a network of more than 4,000 towers that are available for asset sharing and leasing. The towers are located in strategic locations that offer reliable coverage, also in rural areas. USM is one of the best communication stocks to buy.
The company is making strategic moves to optimize its structure. In May 2024, United States Cellular Corporation (NYSE:USM) entered into an agreement to sell its wireless operations and select spectrum assets to T-Mobile. This transaction, which is expected to conclude in mid-2025, excludes United States Cellular Corporation’s (NYSE:USM) 4,400 towers, equity method investments, and approximately 70% of the corporation’s spectrum assets. To focus its resources better, the company has entered into several other transactions. In October, United States Cellular Corporation (NYSE:USM) announced a sale of select spectrum assets for $1 billion. The company also entered into additional spectrum sales to 2 other network operators.
Additionally, over the past few years, United States Cellular Corporation (NYSE:USM) made strategic investments to enhance its network and improve 5G coverage in its footprint. Looking ahead, the company’s future network investments are expected to be aimed at the deployment of mid-band spectrum to enhance 5G speed and capacity.
Overall, USM ranks 8th 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 USM 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.