Why These 15 Telecom Stocks Are Surging In 2025

The telecom sector has seen many ups and downs in the past few years. Post-COVID, these stocks declined even more due to the inflation wave and the subsequent interest rate hikes. Telecommunication companies usually have significant debt on their balance sheets due to infrastructure CapEx, and they were among the hardest hit.

However, rates are now slowly coming down, and these stocks are also starting to bottom out and turn a corner. Many telecom stocks are still profitable and pay dividends. Falling bond yields are making them even more attractive. It’s a good idea to keep tabs on which telecom stocks are spearheading the gains so far this year.

Methodology

For this article, I screened the best-performing telecom stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

15. Charter Communications (NASDAQ:CHTR)

Number of Hedge Fund Holders In Q4 2024: 71

Charter Communications (NASDAQ:CHTR) is a broadband connectivity and cable company. It also offers telecom services under the Spectrum brand.

The stock is up significantly so far in 2025 as it reported solid Q4 2024 results. Revenue grew 1.6% year-over-year to $13.93 billion and exceeded estimates of $13.87 billion.

EPS of $10.1 surpassed analyst expectations of $9.22 by 9.5%. Adjusted EBITDA reached $5.76 billion with a margin of 41.4% and also beat projections of $5.71 billion.

Despite a decline in internet subscribers, the company maintained solid operating and free cash flow margins at 24.3% and 7.1%, respectively.

Plus, Charter’s mobile segment showed impressive performance with a revenue surge of 37.9% and its rural build-out has also been positive for the company.

The consensus price target of $389.39 implies 5.96% upside.

CHTR stock is up 7.25% year-to-date.

14. Crexendo Inc (NASDAQ:CXDO)

Number of Hedge Fund Holders In Q4 2024: 10

Crexendo Inc (NASDAQ:CXDO) provides cloud and unified communications services. It also has cloud center and cloud business services.

The stock is up significantly so far in 2025 due to solid Q4 2024 earnings. It surpassed analysts’ expectations with an EPS of $0.06 compared to the $0.05 projection.

Revenue grew 15% year-over-year to $16.2 million and exceeded the $15.64 million forecast. Gross margins also improved from 59% to 62%.

The consensus price target of $8.75 implies 53.78% upside.

CXDO stock is up 8.80% year-to-date.