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.
A telecommunications tower reaching high into the sky, connected to a satellite system.
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.
13. United States Cellular Corp (NYSE:USM)
Number of Hedge Fund Holders In Q4 2024: 19
United States Cellular Corp (NYSE:USM) sells wireless telecom services.
The stock is up significantly so far in 2025 as the company entered into agreements with Verizon and AT&T to sell substantial portions of its spectrum assets. The Verizon deal involves $1 billion worth of AWS, Cellular, and PCS licenses, while the AT&T agreement includes $1.018 billion for 3.45 GHz and 700 MHz licenses.
These transactions collectively represent approximately $2.02 billion in total consideration for about 70 percent of the company’s spectrum holdings.
Earlier, UScellular announced an agreement to sell its wireless operations and 30 percent of its wireless spectrum licenses to T-Mobile. This transaction is expected to close in mid-2025.
The consensus price target of $86.33 implies 26.12% upside.
USM stock is up 9.23% year-to-date.
12. IDT Corp (NYSE:IDT)
Number of Hedge Fund Holders In Q4 2024: 20
IDT Corp (NYSE:IDT) provides communications and payment services. It also has point-of-sale and international remittance systems, along with cloud and traditional communication services.
The stock is up significantly so far in 2025 as IDT reported stellar Q2 FY2025 results. Revenue increased by 2% year-over-year to $303.3 million. Gross profit surged by 16% to $112 million, with gross margins expanding to 36.9%.
Income from operations jumped by 77% to $28.3 million. Adjusted EBITDA also rose by 56% to $34 million. Meanwhile, GAAP EPS increased from $0.57 to $0.80, while non-GAAP EPS grew from $0.67 to $0.84.
In addition, IDT raised its quarterly dividend by 20%, from $0.05 to $0.06 per share. The company repurchased 179,338 shares of Class B common stock during the second quarter for $8.5 million at an average price of $47.59 per share.
IDT stock is up 9.93% year-to-date.
11. Telephone and Data Systems Inc (NYSE:TDS)
Number of Hedge Fund Holders In Q4 2024: 36
Telephone and Data Systems Inc (NYSE:TDS) provides wireless, broadband, video, and voice services to approximately 6 million connections nationwide.
The stock is up significantly so far in 2025 as the company’s subsidiary (U.S. Cellular) is selling portions of its business to other mobile operators for a total consideration of $1 billion.
Moreover, TDS Telecom reached a significant milestone by serving 50 percent of its service addresses with fiber. TDS also declared first-quarter 2025 dividends, including $0.04 per common share and substantial payouts for preferred shares.
The consensus price target of $53.5 implies 42.26% upside.
TDS stock is up 10.21% year-to-date.
10. Verizon Communications Inc (NYSE:VZ)
Number of Hedge Fund Holders In Q4 2024: 74
Verizon Communications Inc (NYSE:VZ) needs little introduction. It is one of the leading telecom companies in the U.S.
The stock is up significantly so far in 2025 as the company has been recovering from a multi-year decline. The decline was mostly due to interest rate increases, and as rates slowly come down and the company adjusts to the higher interest rate environment, the stock is also rising.
Also, Verizon reaffirmed its financial targets for 2025. It projects wireless service revenue growth of 2.0% to 2.8% and adjusted EBITDA growth of 2% to 3.5%, along with FCF between $17.5 billion and $18.5 billion.
Verizon’s investments in building the most robust 5G network in North America are paying off as it reported strong subscriber growth in its broadband segment, including a record 26% year-over-year increase in total subscribers during late 2024.
The consensus price target of $46.53 implies 6.76% upside.
VZ stock is up 10.87% year-to-date.
9. Altice USA Inc (NYSE:ATUS)
Number of Hedge Fund Holders In Q4 2024: 38
Altice USA Inc (NYSE:ATUS) is a telecom provider that offers broadband, video, and mobile services under the Optimum brand.
The stock is up significantly so far in 2025 as Raymond James upgraded Altice USA’s stock from “market perform” to “outperform,” and it also set a $3.5 price target. Moreover, Citi analysts raised their price target to $3 late last year.
The company is targeting $100 million in revenue growth this year, and despite missing Q4 estimates, there was still optimism about the company making a turnaround.
The consensus price target of $2.15 implies 21.1% downside.
ATUS stock is up 12.66% year-to-date.
8. Liberty Broadband Corp (NASDAQ:LBRDA)
Number of Hedge Fund Holders In Q4 2024: 22
Liberty Broadband Corp (NASDAQ:LBRDA) is a company that operates in the communications sector and owns interests in Charter Communications and its subsidiary GCI Holdings. GCI provides telecom services in Alaska.
The stock is up significantly so far in 2025 as the company will be acquired by Charter Communications. On February 26, 2025, Liberty Broadband shareholders approved the merger agreement announced in late 2024.
This all-stock transaction is expected to close by June 30, 2027, with Liberty Broadband spinning off its GCI business beforehand.
The deal is seen as a value-enhancing move for shareholders due to improved liquidity and rationalization of Liberty Broadband’s trading discount.
The consensus price target of $79 implies 6.34% downside.
LBRDA stock is up 13.52% year-to-date.
7. T-Mobile US Inc (NASDAQ:TMUS)
Number of Hedge Fund Holders In Q4 2024: 70
T-Mobile US Inc (NASDAQ:TMUS) is one of the leading telecommunications companies.
The stock is up significantly so far in 2025 as T-Mobile announced an agreement to sell its 800 MHz spectrum portfolio to Grain Management LLC while acquiring Grain’s 600 MHz spectrum licenses.
The transaction will optimize the company’s spectrum assets and allow it to build out 5G services better.
Its 5G-Advanced network with 6-carrier aggregation technology also allowed the company to have record-breaking speeds.
TMUS stock has outperformed the broader telecom sector massively and did not decline in the past few years. As many telecom stocks now rebound, TMUS has been accelerating and building on its gains even more.
The consensus price target of $255.8 implies 1.22% downside.
TMUS stock is up 17.70% year-to-date.
6. AT&T Inc (NYSE:T)
Number of Hedge Fund Holders In Q4 2024: 80
AT&T Inc (NYSE:T) is a telecom company that provides wireless and broadband services.
The stock is up significantly so far in 2025 as it announced plans to return over $40 billion to shareholders through dividends and share repurchases from 2025 to 2027.
This includes an initial tranche of $10 billion in buybacks authorized by the board, expected to begin once the company achieves its net leverage target in mid-2025.
The company also reaffirmed its annualized dividend of $1.11 per share, which remains attractive amid high Treasury yields.
Moreover, the pending sale of AT&T’s 70 percent stake in DIRECTV to TPG Capital is expected to generate $7.6 billion. Q4 results were also quite strong.
The consensus price target of $26.79 implies 0.61% downside.
T stock is up 19.83% year-to-date.
5. Millicom International Cellular SA (NASDAQ:TIGO)
Number of Hedge Fund Holders In Q4 2024: 17
Millicom International Cellular SA (NASDAQ:TIGO) is a telecom company that is based in Luxembourg, though it does business in Latin America under the TIGO and Tigo Business brands.
The stock is up significantly so far in 2025 as Millicom finalized the delisting of its Swedish Depositary Receipts (SDRs) from Nasdaq Stockholm. Around 5.1 million SDRs remained unconverted. This prompted SEB (the custodian bank) to initiate mandatory sales of the underlying shares.
This move simplified Millicom’s capital structure by consolidating trading on the U.S. Nasdaq Stock Market. Investors viewed it positively.
Millicom declared an interim dividend of $0.75 per share payable on April 15, 2025, with an ex-dividend date of April 8, 2025.
The consensus price target of $33.98 implies 14.8% upside.
TIGO stock is up 23.34% year-to-date.
4. Anterix Inc (NASDAQ:ATEX)
Number of Hedge Fund Holders In Q4 2024: 21
Anterix Inc (NASDAQ:ATEX) is a wireless communications company that specializes in private broadband networks for key infrastructure sectors.
The stock is up significantly so far in 2025 as Anterix initiated a strategic review process after receiving inbound interest from potential buyers or partners. This development has fueled speculation about a potential merger or acquisition.
Moreover, Anterix reported a net profit of $7.7 million for Q3 FY2025. In comparison, net profit was $0.3 million in the year-ago quarter.
The company also received a $34 million payment from Oncor Electric Delivery Company in January 2025.
Plus, Anterix announced the AnterixAccelerator initiative to accelerate private wireless broadband adoption among utility companies. This program includes a $250 million investment and has already attracted interest from over 15 utilities.
The consensus price target of $67 implies 75.67% upside.
ATEX stock is up 24.16% year-to-date.
3. ATN International Inc (NASDAQ:ATNI)
Number of Hedge Fund Holders In Q4 2024: 13
ATN International Inc (NASDAQ:ATNI) is a digital infrastructure and communications services company.
The stock is up significantly so far in 2025 as ATN declared a quarterly dividend of $0.24 per share, payable on April 7, 2025. This announcement caused an uptick, especially since bond yields are down and investors are getting slightly more yield hungry.
The Q4 2024 results also came in solid as high-speed broadband subscribers grew by 3% year-over-year. Broadband homes passed expanded by 16% and net cash flow from operations also increased by 16%.
The consensus price target of $26 implies 19.49% upside.
ATNI stock is up 29.45% year-to-date.
2. Sify Technologies Ltd (NASDAQ:SIFY)
Number of Hedge Fund Holders In Q4 2024: 1
Sify Technologies Ltd (NASDAQ:SIFY) is an India-based provider of integrated Internet, network, and electronic commerce services.
The stock is up significantly so far in 2025 as it has been expanding its data center services and commissioned new facilities such as a 6.5 MW data center in Mumbai.
The gains are also a part of a broader rally as the stock is recovering from a severe decline since 2021.
SIFY stock is up 58.74% year-to-date.
1. IHS Holding Ltd (NYSE:IHS)
Number of Hedge Fund Holders In Q4 2024: 17
IHS Holding Ltd (NYSE:IHS) is an independent owner of shared telecommunications infrastructure that serves mobile operators in emerging markets like Nigeria, Sub-Saharan Africa, the Middle East, and Latin America.
The stock is up significantly so far in 2025 as IHS reported strong Q4 2024 results with revenue at $437.8 million. It exceeded expectations of $423.27 million. Adjusted EBITDA and cash flow metrics also surpassed guidance.
The company provided optimistic guidance for 2025 and projected revenue between $1.68 billion and $1.71 billion (12% organic growth) and adjusted EBITDA between $960 million and $980 million.
The company also announced plans to build approximately 500 new towers in 2025, signaling continued growth in its core markets.
Plus, IHS completed the sale of its 70% stake in IHS Kuwait Limited for $230 million in December 2024.
The consensus price target of $7.75 implies 46.4% upside.
IHS stock is up 82.36% year-to-date.
While we acknowledge the potential of IHS as an investment, 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 IHS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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