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Sectors & IndustriesTechnologyCommunication 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
OverviewZen RatingPriceValueGrowthFinancialsMomentumSentimentForecastDividendsDue Diligence
A
Communication Equipment is Zen Rated A and is the 27th 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
BKTI
BK TECHNOLOGIES CORP
37
43
71
0
70
0
EXTR
EXTREME NETWORKS INC
10
0
29
11
0
–
DGII
DIGI INTERNATIONAL INC
66
71
100
33
60
–
VIAV
VIAVI SOLUTIONS INC
32
43
43
33
10
–
BOSC
BOS BETTER ONLINE SOLUTIONS LTD
45
71
57
0
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 Aug 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 57 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: B, Growth: B, Momentum: B, Sentiment: A, Safety: C, Financials: A, and AI: D.

Bk Technologies (NYSEMKT:BKTI) has a Due Diligence Score of 37, which is 7 points higher than the communication equipment industry average of 30.

BKTI passed 15 out of 38 due diligence checks and has average fundamentals. Bk Technologies has seen its stock return 291.84% over the past year, overperforming other communication equipment stocks by 260 percentage points.

Bk Technologies has an average 1 year price target of $74.00, an upside of 13.36% from Bk Technologies's current stock price of $65.28.

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. Extreme Networks (NASDAQ:EXTR)


Extreme Networks (NASDAQ:EXTR) is the #2 top communication equipment stock out of 57 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 Extreme Networks (NASDAQ:EXTR) is: Value: C, Growth: A, Momentum: B, Sentiment: B, Safety: C, Financials: B, and AI: B.

Extreme Networks (NASDAQ:EXTR) has a Due Diligence Score of 10, which is -20 points lower than the communication equipment industry average of 30. Although this number is below the industry average, our proven quant model rates EXTR as a "A".

EXTR passed 3 out of 33 due diligence checks and has weak fundamentals. Extreme Networks has seen its stock return 32.71% over the past year.

Extreme Networks has an average 1 year price target of $21.25, an upside of 7.76% from Extreme Networks's current stock price of $19.72.

Extreme Networks stock has a consensus Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Extreme Networks, 25% have issued a Strong Buy rating, 25% have issued a Buy, 50% 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 57 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 36 points higher than the communication equipment industry average of 30.

DGII passed 21 out of 33 due diligence checks and has strong fundamentals. Digi International has seen its stock return 11.06% over the past year, underperforming other communication equipment stocks by -21 percentage points.

Digi International has an average 1 year price target of $36.50, an upside of 13.21% from Digi International's current stock price of $32.24.

Digi International stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Digi International, 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.

What are the communication equipment stocks with highest dividends?

Out of 8 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 N/A, which is N/A percentage points lower than the communication equipment industry average of 1.86%. 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 40.7% indicates that its dividend yield is sustainable for the long-term.

2. Audiocodes (NASDAQ:AUDC)


Audiocodes (NASDAQ:AUDC) has an annual dividend yield of 3.88%, which is 2 percentage points higher than the communication equipment industry average of 1.86%. 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 76.6% indicates that its high dividend yield is sustainable for the long-term.

3. Ericsson LM Telephone Co (NASDAQ:ERIC)


Ericsson LM Telephone Co (NASDAQ:ERIC) has an annual dividend yield of 3.42%, which is 2 percentage points higher than the communication equipment industry average of 1.86%. Ericsson LM Telephone Co's dividend payout is not stable, having dropped more than 10% four 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 26,200% indicates that its dividend yield might not be sustainable for the long-term.

Why are communication equipment stocks down?

Communication equipment stocks were down -1.43% in the last day, and down -1.15% over the last week. Actelis Networks was the among the top losers in the communication equipment industry, dropping -18.02% yesterday.

Actelis Networks shares are trading lower after the company reported worse-than-expected Q2 financial results.

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. Ceragon Networks (NASDAQ:CRNT)


Ceragon Networks (NASDAQ:CRNT) 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.

Ceragon Networks has a valuation score of 43, which is 17 points higher than the communication equipment industry average of 26. It passed 3 out of 7 valuation due diligence checks.

Ceragon Networks's stock has dropped -34.02% in the past year. It has underperformed other stocks in the communication equipment industry by -66 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 71, which is 45 points higher than the communication equipment industry average of 26. It passed 5 out of 7 valuation due diligence checks.

Audiocodes's stock has dropped -7.55% in the past year. It has underperformed other stocks in the communication equipment industry by -40 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 43, which is 17 points higher than the communication equipment industry average of 26. It passed 3 out of 7 valuation due diligence checks.

Ericsson LM Telephone Co's stock has gained 10.14% 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?

42.86% of communication equipment stocks rated by analysts are a strong buy right now. On average, analysts expect communication equipment stocks to rise by 3.94% over the next year.

17.78% of communication equipment stocks have a Zen Rating of A (Strong Buy), 22.22% of communication equipment stocks are rated B (Buy), 42.22% are rated C (Hold), 13.33% are rated D (Sell), and 4.44% 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 397.49x.
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