Sectors & IndustriesTechnologyCommunication Equipment

Best Communication Equipment Stocks to Buy Now (2022)

Top communication equipment stocks in 2022 ranked by overall Zen Score. See the best communication equipment stocks to buy now, according to analyst forecasts for the communication equipment industry.

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

Clearfield (NASDAQ:CLFD) is the top communication equipment stock with a Zen Score of 57, which is 25 points higher than the communication equipment industry average of 32. It passed 19 out of 33 due diligence checks and has strong fundamentals. Clearfield has seen its stock return 107.71% over the past year, overperforming other communication equipment stocks by 124 percentage points.

Clearfield has an average 1 year price target of $73.50, a downside of -29.29% from Clearfield's current stock price of $103.94.

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

Cisco (NASDAQ:CSCO) is the second best communication equipment stock with a Zen Score of 56, which is 24 points higher than the communication equipment industry average of 32. It passed 20 out of 38 due diligence checks and has strong fundamentals. Cisco has seen its stock lose -23.03% over the past year, underperforming other communication equipment stocks by -7 percentage points.

Cisco has an average 1 year price target of $51.71, an upside of 24.53% from Cisco's current stock price of $41.52.

Cisco stock has a consensus Buy recommendation according to Wall Street analysts. Of the 17 analysts covering Cisco, 11.76% have issued a Strong Buy rating, 29.41% have issued a Buy, 52.94% have issued a hold, while 0% have issued a Sell rating, and 5.88% have issued a Strong Sell.

Lumentum Holdings (NASDAQ:LITE) is the third best communication equipment stock with a Zen Score of 53, which is 21 points higher than the communication equipment industry average of 32. It passed 17 out of 33 due diligence checks and has strong fundamentals. Lumentum Holdings has seen its stock lose -9.63% over the past year, overperforming other communication equipment stocks by 6 percentage points.

Lumentum Holdings has an average 1 year price target of $109.27, an upside of 47.73% from Lumentum Holdings's current stock price of $73.97.

Lumentum Holdings stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 11 analysts covering Lumentum Holdings, 63.64% have issued a Strong Buy rating, 27.27% have issued a Buy, 9.09% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 15 communication equipment stocks that have issued dividends in the past year, the 3 communication equipment stocks with the highest dividend yields are:

Tel (NASDAQ:PCTI) has an annual dividend yield of 4.73%, which is 2 percentage points higher than the communication equipment industry average of 2.51%. Tel's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Tel's dividend has shown consistent growth over the last 10 years.

Tel's dividend payout ratio of -2,200% indicates that its dividend yield might not be sustainable for the long-term.

Network 1 Technologies (NYSEMKT:NTIP) has an annual dividend yield of 4.44%, which is 2 percentage points higher than the communication equipment industry average of 2.51%. Network 1 Technologies's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Network 1 Technologies's dividend has not shown consistent growth over the last 10 years.

Network 1 Technologies's dividend payout ratio of 76.9% indicates that its dividend yield is sustainable for the long-term.

Ericsson Lm Telephone Co (NASDAQ:ERIC) has an annual dividend yield of 4.03%, which is 2 percentage points higher than the communication equipment industry average of 2.51%. Ericsson Lm Telephone Co's dividend payout is not stable, having dropped more than 10% six times in the last 10 years. Ericsson Lm Telephone Co's dividend has not shown consistent growth over the last 10 years.

Ericsson Lm Telephone Co's dividend payout ratio of 32.7% indicates that its dividend yield is sustainable for the long-term.

Communication equipment stocks were down -0.18% in the last day, and up 6.51% over the last week.

We couldn't find a catalyst for why communication equipment stocks are down.

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

Pineapple Energy (NASDAQ:PEGY) is the most undervalued communication equipment stock based on WallStreetZen's Valuation Score. Pineapple Energy has a valuation score of 100, which is 64 points higher than the communication equipment industry average of 36. It passed 7 out of 7 valuation due diligence checks.

Pineapple Energy's stock has dropped -85.89% in the past year. It has underperformed other stocks in the communication equipment industry by -70 percentage points.

Ericsson Lm Telephone Co (NASDAQ:ERIC) is the second most undervalued communication equipment stock based on WallStreetZen's Valuation Score. Ericsson Lm Telephone Co has a valuation score of 86, which is 50 points higher than the communication equipment industry average of 36. It passed 6 out of 7 valuation due diligence checks.

Ericsson Lm Telephone Co's stock has dropped -45.15% in the past year. It has underperformed other stocks in the communication equipment industry by -29 percentage points.

Aviat Networks (NASDAQ:AVNW) is the third most undervalued communication equipment stock based on WallStreetZen's Valuation Score. Aviat Networks has a valuation score of 86, which is 50 points higher than the communication equipment industry average of 36. It passed 6 out of 7 valuation due diligence checks.

Aviat Networks's stock has dropped -18.51% in the past year. It has underperformed other stocks in the communication equipment industry by -3 percentage points.