Sectors & Industries TechnologyCommunication 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 +32.52% per year, and are the best communication equipment stocks to buy now. Learn More.

Industry: Communication Equipment

Price Value Growth Financials Momentum Sentiment Forecast Dividends Due Diligence

Communication Equipment is Zen Rated B and is the 31st ranked industry out of 145 stock market industries

Ticker	Company	Zen Rating	Value	Growth	Momentum	Sentiment	Safety	Financials	AI	1w Zen Rating	1m Zen Rating	3m Zen Rating	1y Zen Rating
KN	KNOWLES CORP	A	C	B	C	C	C	A	C	A	A	A	C
BKTI	BK TECHNOLOGIES CORP	A	C	B	C	A	C	A	C	A	A	A	A
ERIC	ERICSSON LM TELEPHONE CO	A	B	C	B	B	B	B	B	B	B	B	B
LTRX	LANTRONIX INC	A	C	A	C	B	C	B	C	A	A	B	C
DGII	DIGI INTERNATIONAL INC	A	C	B	C	C	B	B	B	A	A	A	A

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Use the proven Zen Ratings quant model to find stocks with high potential to beat the market. Stocks Zen-Rated "A" have beaten the market by +32.52% annually. Learn More

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Communication Equipment Stocks FAQ

What are the best communication equipment stocks to buy right now in Mar 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. Knowles (NYSE:KN)

Knowles (NYSE:KN) is the #1 top communication equipment stock out of 55 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Knowles (NYSE:KN) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: A, and AI: C.

Knowles (NYSE:KN) has a Due Diligence Score of 52, which is 22 points higher than the communication equipment industry average of 30.

KN passed 16 out of 33 due diligence checks and has strong fundamentals. Knowles has seen its stock return 53.08% over the past year, underperforming other communication equipment stocks by -27 percentage points.

Knowles has an average 1 year price target of $23.00, a downside of -7.37% from Knowles's current stock price of $24.83.

Knowles stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Knowles, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Bk Technologies (NYSEMKT:BKTI)

Bk Technologies (NYSEMKT:BKTI) is the #2 top communication equipment stock out of 55 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Bk Technologies (NYSEMKT:BKTI) is: Value: C, Growth: B, Momentum: C, Sentiment: A, Safety: C, Financials: A, and AI: C.

Bk Technologies (NYSEMKT:BKTI) has a Due Diligence Score of 44, which is 14 points higher than the communication equipment industry average of 30.

BKTI passed 18 out of 38 due diligence checks and has strong fundamentals. Bk Technologies has seen its stock return 207.74% over the past year, overperforming other communication equipment stocks by 128 percentage points.

3. Ericsson LM Telephone Co (NASDAQ:ERIC)

Ericsson LM Telephone Co (NASDAQ:ERIC) is the #3 top communication equipment stock out of 55 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Ericsson LM Telephone Co (NASDAQ:ERIC) is: Value: B, Growth: C, Momentum: B, Sentiment: B, Safety: B, Financials: B, and AI: B.

Ericsson LM Telephone Co (NASDAQ:ERIC) has a Due Diligence Score of 27, which is -3 points lower than the communication equipment industry average of 30. Although this number is below the industry average, our proven quant model rates ERIC as a "A".

ERIC passed 9 out of 38 due diligence checks and has average fundamentals. Ericsson LM Telephone Co has seen its stock return 31.56% over the past year, underperforming other communication equipment stocks by -49 percentage points.

Ericsson LM Telephone Co has an average 1 year price target of $11.00, a downside of -1.17% from Ericsson LM Telephone Co's current stock price of $11.13.

Ericsson LM Telephone Co stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Ericsson LM Telephone Co, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the communication equipment stocks with highest dividends?

Out of 9 communication equipment stocks that have issued dividends in the past year, the 3 communication equipment stocks with the highest dividend yields are:

1. Audiocodes (NASDAQ:AUDC)

Audiocodes (NASDAQ:AUDC) has an annual dividend yield of 4.96%, which is 3 percentage points higher than the communication equipment industry average of 1.92%. 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 122.6% indicates that its high dividend yield might not be sustainable for the long-term.

2. Ituran Location & Control (NASDAQ:ITRN)

Ituran Location & Control (NASDAQ:ITRN) has an annual dividend yield of 4.04%, which is 2 percentage points higher than the communication equipment industry average of 1.92%. 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 68.5% indicates that its high dividend yield is sustainable for the long-term.

3. Hewlett Packard Enterprise Co (NYSE:HPE)

Hewlett Packard Enterprise Co (NYSE:HPE) has an annual dividend yield of 2.52%, which is 1 percentage points higher than the communication equipment industry average of 1.92%. Hewlett Packard Enterprise Co's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Hewlett Packard Enterprise Co's dividend has shown consistent growth over the last 10 years.

Hewlett Packard Enterprise Co's dividend payout ratio of -1,300% indicates that its dividend yield might not be sustainable for the long-term.

Why are communication equipment stocks down?

Communication equipment stocks were down -5.06% in the last day, and down -7.41% 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. Audiocodes (NASDAQ:AUDC)

Audiocodes (NASDAQ:AUDC) 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.

Audiocodes has a valuation score of 100, which is 76 points higher than the communication equipment industry average of 24. It passed 7 out of 7 valuation due diligence checks.

Audiocodes's stock has dropped -23.67% in the past year. It has underperformed other stocks in the communication equipment industry by -104 percentage points.

2. Aviat Networks (NASDAQ:AVNW)

Aviat Networks (NASDAQ:AVNW) 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.

Aviat Networks has a valuation score of 71, which is 47 points higher than the communication equipment industry average of 24. It passed 5 out of 7 valuation due diligence checks.

Aviat Networks's stock has gained 20.82% in the past year. It has underperformed other stocks in the communication equipment industry by -59 percentage points.

3. Belden (NYSE:BDC)

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

Belden has a valuation score of 43, which is 19 points higher than the communication equipment industry average of 24. It passed 3 out of 7 valuation due diligence checks.

Belden's stock has gained 17.22% in the past year. It has underperformed other stocks in the communication equipment industry by -63 percentage points.

Are communication equipment stocks a good buy now?

55.56% of communication equipment stocks rated by analysts are a strong buy right now. On average, analysts expect communication equipment stocks to rise by 11.64% over the next year.

15.56% of communication equipment stocks have a Zen Rating of A (Strong Buy), 15.56% of communication equipment stocks are rated B (Buy), 55.56% are rated C (Hold), 13.33% are rated D (Sell), and 0% 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 555.06x.

WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.

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Communication Equipment Stocks FAQ

1. Knowles (NYSE:KN)

2. Bk Technologies (NYSEMKT:BKTI)

3. Ericsson LM Telephone Co (NASDAQ:ERIC)

1. Audiocodes (NASDAQ:AUDC)

2. Ituran Location & Control (NASDAQ:ITRN)

3. Hewlett Packard Enterprise Co (NYSE:HPE)

1. Audiocodes (NASDAQ:AUDC)

2. Aviat Networks (NASDAQ:AVNW)

3. Belden (NYSE:BDC)

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