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Sectors & IndustriesTechnologyCommunication Equipment
Best Communication Equipment Stocks to Buy Now (2026)
Top communication equipment stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +28.50% per year, and are the best communication equipment stocks to buy now. Learn More.

Industry: Communication Equipment
OverviewZen RatingPriceValueGrowthFinancialsMomentumSentimentForecastDividendsDue Diligence
B
Communication Equipment is Zen Rated B and is the 38th ranked industry out of 145 stock market industries
Learn how the Zen Ratings work
Ticker
Company
DD Score
Valuation Score
Financials Score
Forecast Score
Performance Score
Dividends Score
DGII
DIGI INTERNATIONAL INC
38
14
43
33
60
–
HPE
HEWLETT PACKARD ENTERPRISE CO
54
29
86
44
50
60
AUDC
AUDIOCODES LTD
34
43
43
33
30
20
ITRN
ITURAN LOCATION & CONTROL LTD
57
71
71
22
60
60
EXTR
EXTREME NETWORKS INC
44
14
57
56
50
–

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Use Due Diligence Score to quickly analyze stock fundamentals, even if you don't have a finance background. We run time-tested due diligence checks inspired by legendary investors like Warren Buffett, and score each company based on how many they pass/fail.

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Communication Equipment Stocks FAQ

What are the best communication equipment stocks to buy right now in Sep 2026?

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best communication equipment stocks to buy right now are:

1. Digi International (NASDAQ:DGII)


Digi International (NASDAQ:DGII) is the #1 top communication equipment stock out of 53 with a Zen Rating of A. Stocks with a rating of A have had an average return of +28.5% per year. Learn more.

The Component Grade breakdown for Digi International (NASDAQ:DGII) is: Value: C, Growth: B, Momentum: B, Sentiment: B, Safety: B, Financials: B, and AI: B.

Digi International (NASDAQ:DGII) has a Due Diligence Score of 38, which is 5 points higher than the communication equipment industry average of 33.

DGII passed 13 out of 33 due diligence checks and has average fundamentals. Digi International has seen its stock return 100.32% over the past year, overperforming other communication equipment stocks by 61 percentage points.

Digi International has an average 1 year price target of $82.33, an upside of 9.34% from Digi International's current stock price of $75.30.

Digi International stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Digi International, 66.67% have issued a Strong Buy rating, 0% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Hewlett Packard Enterprise Co (NYSE:HPE)


Hewlett Packard Enterprise Co (NYSE:HPE) is the #2 top communication equipment stock out of 53 with a Zen Rating of A. Stocks with a rating of A have had an average return of +28.5% per year. Learn more.

The Component Grade breakdown for Hewlett Packard Enterprise Co (NYSE:HPE) is: Value: B, Growth: A, Momentum: B, Sentiment: B, Safety: C, Financials: C, and AI: C.

Hewlett Packard Enterprise Co (NYSE:HPE) has a Due Diligence Score of 54, which is 21 points higher than the communication equipment industry average of 33.

HPE passed 20 out of 38 due diligence checks and has strong fundamentals. Hewlett Packard Enterprise Co has seen its stock return 152.35% over the past year, overperforming other communication equipment stocks by 113 percentage points.

Hewlett Packard Enterprise Co has an average 1 year price target of $69.18, an upside of 10.98% from Hewlett Packard Enterprise Co's current stock price of $62.33.

Hewlett Packard Enterprise Co stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 17 analysts covering Hewlett Packard Enterprise Co, 58.82% have issued a Strong Buy rating, 5.88% have issued a Buy, 35.29% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Audiocodes (NASDAQ:AUDC)


Audiocodes (NASDAQ:AUDC) is the #3 top communication equipment stock out of 53 with a Zen Rating of A. Stocks with a rating of A have had an average return of +28.5% per year. Learn more.

The Component Grade breakdown for Audiocodes (NASDAQ:AUDC) is: Value: A, Growth: C, Momentum: B, Sentiment: B, Safety: B, Financials: B, and AI: C.

Audiocodes (NASDAQ:AUDC) has a Due Diligence Score of 34, which is 1 points higher than the communication equipment industry average of 33.

AUDC passed 13 out of 38 due diligence checks and has average fundamentals. Audiocodes has seen its stock return 3.13% over the past year, underperforming other communication equipment stocks by -36 percentage points.

What are the communication equipment stocks with highest dividends?

Out of 11 communication equipment stocks that have issued dividends in the past year, the 3 communication equipment stocks with the highest dividend yields are:

1. Vistance Networks (NASDAQ:VISN)


Vistance Networks (NASDAQ:VISN) has an annual dividend yield of 155.04%, which is 139 percentage points higher than the communication equipment industry average of 15.87%.

Vistance Networks's dividend payout ratio of 62.1% indicates that its high dividend yield is sustainable for the long-term.

2. Ituran Location & Control (NASDAQ:ITRN)


Ituran Location & Control (NASDAQ:ITRN) has an annual dividend yield of 5.73%, which is -10 percentage points lower than the communication equipment industry average of 15.87%. Ituran Location & Control's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Ituran Location & Control's dividend has shown consistent growth over the last 10 years.

Ituran Location & Control's dividend payout ratio of 92.6% indicates that its high dividend yield might not be sustainable for the long-term.

3. Audiocodes (NASDAQ:AUDC)


Audiocodes (NASDAQ:AUDC) has an annual dividend yield of 3.86%, which is -12 percentage points lower than the communication equipment industry average of 15.87%. Audiocodes's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Audiocodes's dividend has not shown consistent growth over the last 10 years.

Audiocodes's dividend payout ratio of 153.8% indicates that its dividend yield might not be sustainable for the long-term.

Why are communication equipment stocks down?

Communication equipment stocks were down -0.78% in the last day, and up 3.19% over the last week.

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

What are the most undervalued communication equipment stocks?

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued communication equipment stocks right now are:

1. Belden (NYSE:BDC)


Belden (NYSE:BDC) is the most undervalued communication equipment stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Belden has a valuation score of 57, which is 36 points higher than the communication equipment industry average of 21. It passed 4 out of 7 valuation due diligence checks.

Belden's stock has dropped -13.04% in the past year. It has underperformed other stocks in the communication equipment industry by -52 percentage points.

2. Audiocodes (NASDAQ:AUDC)


Audiocodes (NASDAQ:AUDC) is the second most undervalued communication equipment stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Audiocodes has a valuation score of 43, which is 22 points higher than the communication equipment industry average of 21. It passed 3 out of 7 valuation due diligence checks.

Audiocodes's stock has gained 3.13% in the past year. It has underperformed other stocks in the communication equipment industry by -36 percentage points.

3. Ericsson LM Telephone Co (NASDAQ:ERIC)


Ericsson LM Telephone Co (NASDAQ:ERIC) is the third most undervalued communication equipment stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Ericsson LM Telephone Co has a valuation score of 71, which is 50 points higher than the communication equipment industry average of 21. It passed 5 out of 7 valuation due diligence checks.

Ericsson LM Telephone Co's stock has gained 16.95% in the past year. It has underperformed other stocks in the communication equipment industry by -22 percentage points.

Are communication equipment stocks a good buy now?

54.55% of communication equipment stocks rated by analysts are a strong buy right now. On average, analysts expect communication equipment stocks to rise by 25.76% over the next year.

16.28% of communication equipment stocks have a Zen Rating of A (Strong Buy), 20.93% of communication equipment stocks are rated B (Buy), 39.53% are rated C (Hold), 13.95% are rated D (Sell), and 9.3% are rated F (Strong Sell).

What is the average p/e ratio of the communication equipment industry?

The average P/E ratio of the communication equipment industry is 22.38x.
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