In this article, we take a look at the top 10 telecommunications stocks to buy right now. You can skip our comprehensive analysis of the telecommunications industry and go straight to the internet 5 Best Telecommunications Stocks To Buy Right Now.
The long-term value that telecommunications stocks offer often seems to flow under the radar of investors looking for shorter games with higher-paying options. For an industry, however, that is expected To be worth more than $ 3.4 trillion in the coming years with an average annual growth rate of 6% and to be dominated by established companies with stable revenues, it is somewhat surprising that the telecommunications sector is not getting the attention days he earned in the market, especially in connection with the current volatility.
Should You Invest in Telecom Stocks?
Telecommunications stocks trade at reasonable valuations and offer reliable dividends. They are one of the best options in your portfolio during an economic downturn. With 5G technology quickly making its way into everyday life – in 2020 the US market had more than 15 million 5G connections, a value that is expected to increase by 161% to over 40 million in 2021 – worldwide Smartphone sales are breaking records, and the US government set it up to increase spending on communications infrastructure, telecommunications stocks may be the best defensive game out there right now. President Biden’s plan to invest $ 100 billion in high-speed broadband will also boost telecom inventories in the coming months.
According to a report From the International Finance Corporation, telecommunications stocks in all subsectors including tower companies, data centers, cellular network operators and broadband providers outperformed the S&P 500 at the height of the COVID-19 panic and reported fewer losses than the larger companies that dominated the market Market. According to global consultancy McKinsey, the biggest impact the pandemic had on the telecommunications industry was making it even more central to the lives of almost everyone on the planet.
Philipp Nattermann and Karolina Sauer-Sidor, two high-ranking McKinsey partners, have highlighted in detail the resilience, adaptability and future trends for the industry in a conversation about the impact of the pandemic on telecommunications. The key findings from the conversation underscore how digital services are likely to play a central role in the telecommunications sector in the coming years. A survey carried out by the Dutch auditing company KPMG found that more than 79% of executives in the telecommunications sector of the view that COVID-19 has accelerated digital transformation.
However, even the telecommunications sector is not immune to disruptions in the stock markets with short or medium revolutions. General macroeconomic effects, restrictions on the distribution of airtime and loss of demand at the end of the pyramid seem to have an impact on telecommunications companies. The surge in social media and market speculation about technology stocks has caught all the attention, but the fundamental shift towards higher risk games in the industry that has baffled even market experts has a little more to offer.
The entire hedge fund industry is feeling the repercussions of the changing financial landscape. Its reputation has been tarnished over the past decade, when its hedged returns have not kept up with the unhedged returns of market indices. On the flip side, Insider Monkeys Research was able to pre-identify a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26, 2021, our monthly newsletter stock picks returned 197.2% versus 72.4% for the SPY. Our stock selection outperformed the market by more than 124 percentage points (see details here). We were also able to pre-identify a select group of hedge fund holdings that were significantly underperforming the market. We have been tracking and sharing the list of these stocks since February 2017, and they have lost 13% by November 16. Because of this, we believe hedge fund sentiment is an extremely useful indicator to look out for. You can subscribe to our free newsletter on our homepage to receive our articles in your inbox.
With that in mind, here are the 10 best telecommunications stocks to buy right now.
Best Telecommunications Stocks To Buy
10. Altice USA, Inc. (NYSE: ATUS)
Number of hedge fund holders: 56
Altice USA, Inc. (NYSE: ATUS) is a New York-based telecommunications company providing television, Internet access, and telephone services to nearly 4.9 million residential and business customers in 21 states. The company also operates news channels such as News 12 Networks, Cheddar, and i24NEWS. The company has a construction and network division that also provides maintenance services to telecommunications customers. It was founded in 2015 and is number ten on our list of the top 10 telecommunications stocks to buy right now.
When President Biden pushes an injection plan Government money in high-speed broadbandAltice is one of the companies that could benefit from the plan in the coming months. On April 7, the company closed a $ 300 million deal to purchase Morris Broadband, which would give Altice access to an additional 36,000 customers in North Carolina.
From the hedge funds tracked by Insider Monkey, a New York-based investment firm Soroban Capital Partners is a senior shareholder in the company with 31 million shares valued at more than $ 1 billion.
9. TELUS Corporation (NYSE: TU)
Number of hedge fund holders: 14
TELUS Corporation (NYSE: TU) is a Vancouver-based telecommunications company. The services the company markets include data and voice; Sale of mobile technology equipment, internet protocol; TV hosting and cloud based services. TELUS has more than 16 million subscribers, including almost 9 million mobile phone customers. It was founded in 1993 and ranks ninth on our list of the top 10 telecommunications stocks to buy right now.
The company has a market capitalization of more than $ 27 billion and had annual sales of more than $ 12 billion in December 2020, up from $ 11 billion the previous year. On March 5, investment bank Morgan Stanley rated the company’s stock overweight, increasing the price from $ 24 to $ 28. The bank said the telecommunications sector in Canada is expected to outperform its peers in the US in the second quarter of 2021.
As of the fourth quarter of 2020, 14 hedge funds in Insider Monkey’s database held $ 183 million in the company, up from 12 worth $ 163 million in the previous quarter.
8. Shaw Communications Inc. (NYSE: SJR)
Number of hedge fund holders: 19
Shaw Communications Inc. (NYSE: SJR) is a Calgary-based telecommunications company providing telephone, Internet, television, and cellular services. The company operates in the states of Alberta and British Columbia for the telecommunications business and provides satellite television throughout the country. It was founded in 1966 and is number eight on our list of the top 10 telecommunications stocks to buy right now. Shaw is one of the companies offering 5G services in Canada.
On March 15, it was reported that Rogers Telecom bought Shaw for $ 26 billion. However, on March 30, a Canadian minister said the merger would create serious competition problems as the two companies were two of the largest telecommunications companies in Canada. Shaw’s shares slipped, the government official said, but have since rebounded.
From the hedge funds tracked by Insider Monkey, a New York-based investment firm Renaissance Technologies is a senior shareholder in the company with more than 3.5 million shares valued at more than $ 63 million.
7. Chunghwa Telecom Co., Ltd. (NYSE: CHT)
Number of hedge fund holders: 5
Chunghwa Telecom Co., Ltd. (NYSE: CHT) is a China-based company that is the largest telecommunications provider in mainland China. The company offers local and domestic long distance and leased lines, broadband access, WiFi and multimedia on demand services. It is also involved in the cellular business. The company has a market capitalization of more than $ 30 billion and had annual sales of more than $ 7.3 billion in December 2020, compared to $ 6.9 billion the previous year. It ranks seventh on our list of the top 10 telecommunications stocks to buy right now.
On April 20, the telecommunications company announced that Scandinavian company Nokia would expand 5G telecommunications coverage in Taiwan. The contract for this expansion was signed in October 2020. Nokia is a long-time partner of the Chinese telecommunications giant. Under the deal signed in October, Nokia aims to expand 5G coverage in Taiwan by using non-self-contained small cells to improve high-speed internet coverage.
As of the end of the fourth quarter of 2020, 5 hedge funds in Insider Monkey’s database held $ 157 million in the company, just as they did in the previous quarter for $ 149 million.
6. Rogers Communications Inc. (NYSE: RCI)
Number of hedge fund holders: 15
Rogers Communications Inc. (NYSE: RCI) is a Toronto-based telecommunications company. It provides wireless communications, cable television, telephony, and Internet connectivity to Canadian residents. The company has a large number of telecommunications and mass media. It has nearly 11 million subscribers. Rogers’ mass media includes television networks Sportsnet ONE, Sportsnet 360, Sportsnet World, Citytv, OMNI and OLN. The company also operates two radio channels.
It was founded in 1960 and is number six on our list of the top 10 telecommunications stocks to buy right now. On March 5, investment bank Morgan Stanley raised its price target on Rogers stock from $ 63 to $ 65 and maintained an equal weight rating for the company. However, the bank projected an optimistic future for Canadian telecommunications compared to those across the border in the US.
Of the hedge funds tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in the firm with more than 3.6 million shares valued at more than $ 168 million.
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Disclosure: None. 10 Best Telecommunications Stocks You Can Buy Right Now is originally published on Insider Monkey.