Sectors & Industries TechnologyCommunication Equipment
Best Communication Equipment Stocks to Buy Now (2025)
Top communication equipment stocks in 2025 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

Overview Zen Rating Price Value Growth Financials Momentum Sentiment Forecast Dividends Due Diligence

Communication Equipment is Zen Rated A and is the 22nd ranked industry out of 145 stock market industries

Ticker	Company	DD Score	Valuation Score	Financials Score	Forecast Score	Performance Score	Dividends Score
BKTI	BK TECHNOLOGIES CORP	40	57	71	0	70	0
ERIC	ERICSSON LM TELEPHONE CO	38	43	71	56	0	20
DGII	DIGI INTERNATIONAL INC	66	86	86	33	60	–
ITRN	ITURAN LOCATION & CONTROL LTD	58	86	86	0	60	60
BDC	BELDEN INC	44	57	57	44	40	20

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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 May 2025?

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. Bk Technologies (NYSEMKT:BKTI)

Bk Technologies (NYSEMKT:BKTI) is the #1 top communication equipment stock out of 58 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: A, Momentum: A, Sentiment: A, Safety: C, Financials: A, and AI: C.

Bk Technologies (NYSEMKT:BKTI) has a Due Diligence Score of 40, which is 11 points higher than the communication equipment industry average of 29.

BKTI passed 16 out of 38 due diligence checks and has average fundamentals. Bk Technologies has seen its stock return 217.42% over the past year, overperforming other communication equipment stocks by 226 percentage points.

Bk Technologies has an average 1 year price target of $51.00, an upside of 14.3% from Bk Technologies's current stock price of $44.62.

Bk Technologies stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Bk Technologies, 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.

2. Ericsson LM Telephone Co (NASDAQ:ERIC)

Ericsson LM Telephone Co (NASDAQ:ERIC) is the #2 top communication equipment stock out of 58 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: C, Growth: B, Momentum: B, Sentiment: B, Safety: B, Financials: B, and AI: A.

Ericsson LM Telephone Co (NASDAQ:ERIC) has a Due Diligence Score of 38, which is 9 points higher than the communication equipment industry average of 29.

ERIC passed 14 out of 38 due diligence checks and has average fundamentals. Ericsson LM Telephone Co has seen its stock return 64.14% over the past year, overperforming other communication equipment stocks by 73 percentage points.

Ericsson LM Telephone Co has an average 1 year price target of $9.80, an upside of 18.93% from Ericsson LM Telephone Co's current stock price of $8.24.

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.

3. Digi International (NASDAQ:DGII)

Digi International (NASDAQ:DGII) is the #3 top communication equipment stock out of 58 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 Digi International (NASDAQ:DGII) is: Value: B, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: B, and AI: B.

Digi International (NASDAQ:DGII) has a Due Diligence Score of 66, which is 37 points higher than the communication equipment industry average of 29.

DGII passed 21 out of 33 due diligence checks and has strong fundamentals. Digi International has seen its stock lose -11.29% over the past year, underperforming other communication equipment stocks by -2 percentage points.

Digi International has an average 1 year price target of $34.33, an upside of 26.22% from Digi International's current stock price of $27.20.

Digi International stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Digi International, 33.33% have issued a Strong Buy rating, 0% have issued a Buy, 66.67% 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 10 communication equipment stocks that have issued dividends in the past year, the 3 communication equipment stocks with the highest dividend yields are:

1. Frequency Electronics (NASDAQ:FEIM)

Frequency Electronics (NASDAQ:FEIM) has an annual dividend yield of 5.38%, which is 3 percentage points higher than the communication equipment industry average of 2.32%. Frequency Electronics's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Frequency Electronics's dividend has not shown consistent growth over the last 10 years.

Frequency Electronics's dividend payout ratio of 41.7% indicates that its high dividend yield is sustainable for the long-term.

2. Audiocodes (NASDAQ:AUDC)

Audiocodes (NASDAQ:AUDC) has an annual dividend yield of 3.84%, which is 2 percentage points higher than the communication equipment industry average of 2.32%. 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 70.6% indicates that its dividend yield is sustainable for the long-term.

3. Ituran Location & Control (NASDAQ:ITRN)

Ituran Location & Control (NASDAQ:ITRN) has an annual dividend yield of 3.56%, which is 1 percentage points higher than the communication equipment industry average of 2.32%. Ituran Location & Control's dividend payout is not stable, having dropped more than 10% four 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 61.9% indicates that its dividend yield is sustainable for the long-term.

Why are communication equipment stocks down?

Communication equipment stocks were down -0.1% in the last day, and up 5.75% over the last week. Zebra Technologies was the among the top losers in the communication equipment industry, dropping -2.24% yesterday.

Zebra Technologies shares are trading lower after UBS cut its price target on the stock from $425 to $410 and Needham cut its price target from $395 to $325.

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 71, which is 46 points higher than the communication equipment industry average of 25. It passed 5 out of 7 valuation due diligence checks.

Audiocodes's stock has dropped -13.31% in the past year. It has underperformed other stocks in the communication equipment industry by -4 percentage points.

2. Ceragon Networks (NASDAQ:CRNT)

Ceragon Networks (NASDAQ:CRNT) 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.

Ceragon Networks has a valuation score of 43, which is 18 points higher than the communication equipment industry average of 25. It passed 3 out of 7 valuation due diligence checks.

Ceragon Networks's stock has dropped -21.3% in the past year. It has underperformed other stocks in the communication equipment industry by -12 percentage points.

3. Gilat Satellite Networks (NASDAQ:GILT)

Gilat Satellite Networks (NASDAQ:GILT) 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.

Gilat Satellite Networks has a valuation score of 43, which is 18 points higher than the communication equipment industry average of 25. It passed 3 out of 7 valuation due diligence checks.

Gilat Satellite Networks's stock has gained 28.08% in the past year. It has overperformed other stocks in the communication equipment industry by 37 percentage points.

Are communication equipment stocks a good buy now?

45.24% of communication equipment stocks rated by analysts are a strong buy right now. On average, analysts expect communication equipment stocks to rise by 25.9% over the next year.

19.57% of communication equipment stocks have a Zen Rating of A (Strong Buy), 28.26% of communication equipment stocks are rated B (Buy), 28.26% are rated C (Hold), 15.22% are rated D (Sell), and 8.7% 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 516.67x.

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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.