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Best communications stocks to buy in 2022
Here our experts choose the best communications stocks on the market right now. Read on to find out what they are and then compare the best brokers to buy their shares with.
What are the top communications stocks to buy?
Here are our expert picks in the communications sector. Follow the links in the table to find up to date stock price information, or scroll down for more detail on why each company has been chosen.
|#||Stock ticker||Company name|
|5||NXST||Nexstar Media Group|
1. Facebook (NASDAQ: FB)
The social network Facebook is the most notorious member of the Big Tech companies that have dominated the stock market in recent years. Formed by Mark Zuckerberg while he was at Harvard University in 2004, Facebook is now almost synonymous with social media and online advertising.
Despite its fair share of PR disasters, Facebook’s stock has gone up and up over recent years. That stock is up 150% compared to the lows of late 2018, when it was embroiled in a series of anti-trust battles with federal agencies in America.
Facebook now makes the majority of its money through advertising on the social media platform itself. It’s also grown by acquiring competitors like Instagram and WhatsApp to diversify the services it offers. Right now, the Facebook brand shows no sign of weakening.
2. T-Mobile US (NASDAQ: TMUS)
T-Mobile US is another mobile telecoms operator. Part-owned by the European giant, Deutsche Telekom, this is the US wing of the T-Mobile brand and it has been a public company since 2013.
While most of its competitors have struggled in recent years, T-Mobile has been a wireless success story. Its stock price has grown steadily as the company has adopted a brash attitude to win new customers. As the likes of Verizon and AT&T have moved into areas like film and TV, T-Mobile have maintained a steady focus on the telecoms industry.
Although T-Mobile doesn’t pay a dividend like its two biggest competitors, it is the best placed to benefit from the rise of 5G. It took over a lot of the infrastructure required by merging with Stripe in 2020, so it doesn’t need to spend as much money to grow its service as the others do. Owning T-Mobile is the best way to bet on the success of the 5G network in future.
3. Snap (NYSE: SNAP)
Snap is a social media company that’s best known for owning Snapchat. Formed in 2011, it went public in 2017 through an initial public offering that valued the company at more than $30bn.
The stock traded relatively flat for a couple of years but has really exploded in recent times. Like many tech companies, the pandemic was good for business as people had more time to spend online and needed new ways to communicate. The stock is up 500% since the March 2020 market crash, with much of that growth coming much later in the year.
Snap is a classic, modern tech stock. Its goal is to grow its customer base as quickly as possible now so that it can make money from that later on. Late in 2020, Snap revealed it had seen a 25% in daily active users, which is a huge positive that spurred the recent stock growth and should put Snap on the radar of any growth-orientated investor.
4. Comcast Corporation (NASDAQ: CMCSA)
Comcast is a huge telecoms company that dominates pay TV and broadband supply in the US. It’s the second largest broadcasting company in the world and is the leading player in home internet service and paid television subscriptions in the United States.
Telecoms companies don’t tend to explode in value over a short period of time, because they tend to have a lot of debt and fairly low margins on their subscription products. However, within those tramlines, Comcast has been growing steadily since the late 2000s, when home broadband became almost universal.
Unspurprisingly, the growth became even more pronounced over the last two years, when people were forced to work and spend much more time at home. Its stock is up by more than a quarter on the pre-pandemic price. That period has also helped Comcast strengthen its streaming offering, and the company pays a healthy dividend out every year as well.
5. Nexstar Media Group (NASDAQ: NXST)
Nexstar is a broadcasting company that owns almost 200 television stations in the United States. That makes it the largest owner of such stations in the country and its best known offering is the Television Food Network, which it part owns with Discovery.
This is another company that tends to grow steadily, rather than experiencing major jumps forward. The share price is still up more than 150% in five years, however, and has doubled since the darkest days of the pandemic crash. In fact, 2020 was the best financial year it has ever recorded.
Nexstar tends to go through acquisitions, so it regularly buys up local television networks to add more stations to its portfolio. That means it doesn’t take many risks and buys already established companies. It also pays a dividend, so it’s ideally suited if you want a company that can help you grow your wealth over time.
Where to buy the best communications shares
You can buy any of these stocks using one of the brokers in the table below. These are the best trading platforms around, and you can use the links to head straight to their website and get started.
What is a communications stock?
Any company that’s involved in telephone and internet services, or that serves as a vehicle for creating film or television content. Traditionally, this sector was dominated by a few major players as the barriers to entry were so high. In modern times, there are a huge range of comms stocks available, encompassing things like social media as well.
Are communications shares a good investment?
They can be but it depends on which one you choose. As there are now lots of different types of company available, you can choose between reliable dividend stocks or more modern business that prioritise fast growth over everything else.
The right path can depend on the rest of your portfolio and how big your budget is. It’s often best to own some low-risk stocks that you can rely on to grow steadily over time alongside sprinkling some money in companies that offer a higher reward.
With all investments, you should take time to research the company before you put money into it. Even once you have invested, it’s important to keep up to date with any developments that might affect the share price or the performance of its competitors. You can start to do that by following the links below.
Latest communications news
Vocera Communications up 25% after entering a definitive agreement with Stryker
Verizon and AT&T refuse to delay 5G launch
AT&T price forecast: Morgan Stanley sees a 20% upside
Is BT share price too cheap after the current sell-off?
Is it too late to buy Ciena shares after a 16% post-earnings spike?
Should you buy TDS stock as shares pullback despite declaring a quarterly dividend?
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