Sectors & IndustriesCommunication Services

Best Communication Service Stocks to Buy Now (2024)

Top communication service stocks in 2024 ranked by overall Zen Score. See the best communication service stocks to buy now, according to analyst forecasts for the communication services sector.

According to Zen Score, the 3 best communication stocks to buy right now are:

Cogent Communications Holdings (NASDAQ:CCOI) is the top communication service stock with a Zen Score of 64, which is 37 points higher than the communication service sector average of 27. It passed 24 out of 38 due diligence checks and has strong fundamentals. Cogent Communications Holdings has seen its stock lose -5.27% over the past year, underperforming other communication service stocks by -14 percentage points.

Cogent Communications Holdings has an average 1 year price target of $80.17, an upside of 35.53% from Cogent Communications Holdings's current stock price of $59.15.

Cogent Communications Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Cogent Communications Holdings, 50% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Opera (NASDAQ:OPRA) is the second best communication service stock with a Zen Score of 62, which is 35 points higher than the communication service sector average of 27. It passed 22 out of 38 due diligence checks and has strong fundamentals. Opera has seen its stock lose -1.92% over the past year, underperforming other communication service stocks by -10 percentage points.

Opera has an average 1 year price target of $20.75, an upside of 56.6% from Opera's current stock price of $13.25.

Opera stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Opera, 50% have issued a Strong Buy rating, 50% have issued a Buy, 0% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Direct Digital Holdings (NASDAQ:DRCT) is the third best communication service stock with a Zen Score of 61, which is 34 points higher than the communication service sector average of 27. It passed 20 out of 33 due diligence checks and has strong fundamentals. Direct Digital Holdings has seen its stock return 3.77% over the past year, underperforming other communication service stocks by -5 percentage points.

Direct Digital Holdings has an average 1 year price target of $21.00, an upside of 445.45% from Direct Digital Holdings's current stock price of $3.85.

Direct Digital Holdings stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Direct Digital Holdings, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 50 communication service stocks that have issued dividends in the past year, the 3 communication service stocks with the highest dividend yields are:

Weibo (NASDAQ:WB) has an annual dividend yield of 17.29%, which is 13 percentage points higher than the communication service sector average of 4.28%.

Weibo's dividend payout ratio of 115.2% indicates that its high dividend yield might not be sustainable for the long-term.

Saga Communications (NASDAQ:SGA) has an annual dividend yield of 16.72%, which is 12 percentage points higher than the communication service sector average of 4.28%. Saga Communications's dividend payout is not stable, having dropped more than 10% nine times in the last 10 years. Saga Communications's dividend has shown consistent growth over the last 10 years.

Saga Communications's dividend payout ratio of 313% indicates that its high dividend yield might not be sustainable for the long-term.

GPA (NYSE:TLK) has an annual dividend yield of 11.93%, which is 8 percentage points higher than the communication service sector average of 4.28%. GPA's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. GPA's dividend has shown consistent growth over the last 10 years.

GPA's dividend payout ratio of 73.1% indicates that its high dividend yield is sustainable for the long-term.

Communication service stocks were up 0.03% in the last day, and up 1.37% over the last week. Reddit was the among the top gainers in the communication services sector, gaining 10.04% yesterday.

Reddit shares are trading higher after the company announced a partnership with OpenAI.

Based on WallStreetZen's Valuation Score, the 3 most undervalued communication service stocks right now are:

Perion Network (NASDAQ:PERI) is the most undervalued communication service stock based on WallStreetZen's Valuation Score. Perion Network has a valuation score of 100, which is 75 points higher than the communication service sector average of 25. It passed 7 out of 7 valuation due diligence checks.

Perion Network's stock has dropped -61.55% in the past year. It has underperformed other stocks in the communication service sector by -70 percentage points.

Nexstar Media Group (NASDAQ:NXST) is the second most undervalued communication service stock based on WallStreetZen's Valuation Score. Nexstar Media Group has a valuation score of 100, which is 75 points higher than the communication service sector average of 25. It passed 7 out of 7 valuation due diligence checks.

Nexstar Media Group's stock has gained 3.85% in the past year. It has underperformed other stocks in the communication service sector by -4 percentage points.

Opera (NASDAQ:OPRA) is the third most undervalued communication service stock based on WallStreetZen's Valuation Score. Opera has a valuation score of 100, which is 75 points higher than the communication service sector average of 25. It passed 7 out of 7 valuation due diligence checks.

Opera's stock has dropped -1.92% in the past year. It has underperformed other stocks in the communication service sector by -10 percentage points.