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 -7.22% over the past year, underperforming other communication service stocks by -15 percentage points.

Cogent Communications Holdings has an average 1 year price target of $80.17, an upside of 37.01% from Cogent Communications Holdings's current stock price of $58.51.

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.

Interdigital (NASDAQ:IDCC) is the second 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 22 out of 38 due diligence checks and has strong fundamentals. Interdigital has seen its stock return 29.19% over the past year, overperforming other communication service stocks by 21 percentage points.

Interdigital has an average 1 year price target of $100.00, a downside of -5.94% from Interdigital's current stock price of $106.32.

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

Cable One (NYSE:CABO) is the third best communication service stock with a Zen Score of 53, which is 26 points higher than the communication service sector average of 27. It passed 19 out of 38 due diligence checks and has strong fundamentals. Cable One has seen its stock lose -40.16% over the past year, underperforming other communication service stocks by -48 percentage points.

Cable One has an average 1 year price target of $575.50, an upside of 42.3% from Cable One's current stock price of $404.42.

Cable One stock has a consensus Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Cable One, 50% have issued a Strong Buy rating, 0% have issued a Buy, 25% have issued a Hold, while 0% have issued a Sell rating, and 25% 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:

Vodafone Group Public Co (NASDAQ:VOD) has an annual dividend yield of 10.55%, which is 4 percentage points higher than the communication service sector average of 6.6%. Vodafone Group Public Co's dividend payout is not stable, having dropped more than 10% seven times in the last 10 years. Vodafone Group Public Co's dividend has not shown consistent growth over the last 10 years.

Vodafone Group Public Co's dividend payout ratio of 214.3% indicates that its high dividend yield might not be sustainable for the long-term.

Bce (NYSE:BCE) has an annual dividend yield of 9.21%, which is 3 percentage points higher than the communication service sector average of 6.6%. Bce's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Bce's dividend has shown consistent growth over the last 10 years.

Bce's dividend payout ratio of 225% indicates that its high dividend yield might not be sustainable for the long-term.

Spok Holdings (NASDAQ:SPOK) has an annual dividend yield of 8.28%, which is 2 percentage points higher than the communication service sector average of 6.6%. Spok Holdings's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Spok Holdings's dividend has shown consistent growth over the last 10 years.

Spok Holdings's dividend payout ratio of 148.8% indicates that its high dividend yield might not be sustainable for the long-term.

Communication service stocks were up 0.64% in the last day, and up 1.24% over the last week. Vodafone Group Public Co was the among the top gainers in the communication services sector, gaining 4.79% yesterday.

Vodafone shares are trading higher after the company reported full-year financial results.

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

Interdigital (NASDAQ:IDCC) is the most undervalued communication service stock based on WallStreetZen's Valuation Score. Interdigital has a valuation score of 86, which is 61 points higher than the communication service sector average of 25. It passed 6 out of 7 valuation due diligence checks.

Interdigital's stock has gained 29.19% in the past year. It has overperformed other stocks in the communication service sector by 21 percentage points.

Orange (NYSE:ORAN) is the second most undervalued communication service stock based on WallStreetZen's Valuation Score. Orange has a valuation score of 71, which is 46 points higher than the communication service sector average of 25. It passed 5 out of 7 valuation due diligence checks.

Orange's stock has dropped -8.43% in the past year. It has underperformed other stocks in the communication service sector by -16 percentage points.

Cable One (NYSE:CABO) is the third most undervalued communication service stock based on WallStreetZen's Valuation Score. Cable One has a valuation score of 71, which is 46 points higher than the communication service sector average of 25. It passed 5 out of 7 valuation due diligence checks.

Cable One's stock has dropped -40.16% in the past year. It has underperformed other stocks in the communication service sector by -48 percentage points.