Sectors & IndustriesTechnologyCommunication Equipment

Best Communication Equipment Stocks to Buy Now (2023)

Top communication equipment stocks in 2023 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 60, which is 30 points higher than the communication equipment industry average of 30. It passed 20 out of 33 due diligence checks and has strong fundamentals. Clearfield has seen its stock return 42.16% over the past year, overperforming other communication equipment stocks by 48 percentage points.

Clearfield has an average 1 year price target of $129.00, an upside of 86.52% from Clearfield's current stock price of $69.16.

Clearfield stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Clearfield, 25% have issued a Strong Buy rating, 75% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Ericsson Lm Telephone Co (NASDAQ:ERIC) is the second best communication equipment stock with a Zen Score of 53, which is 23 points higher than the communication equipment industry average of 30. It passed 19 out of 38 due diligence checks and has strong fundamentals. Ericsson Lm Telephone Co has seen its stock lose -51.86% over the past year, underperforming other communication equipment stocks by -46 percentage points.

Ericsson Lm Telephone Co has an average 1 year price target of $9.25, an upside of 58.93% from Ericsson Lm Telephone Co's current stock price of $5.82.

Ericsson Lm Telephone Co stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Ericsson Lm Telephone Co, 20% have issued a Strong Buy rating, 40% have issued a Buy, 40% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Cisco (NASDAQ:CSCO) is the third best communication equipment stock with a Zen Score of 49, which is 19 points higher than the communication equipment industry average of 30. It passed 17 out of 38 due diligence checks and has strong fundamentals. Cisco has seen its stock lose -11.19% over the past year, underperforming other communication equipment stocks by -5 percentage points.

Cisco has an average 1 year price target of $52.00, an upside of 7.19% from Cisco's current stock price of $48.51.

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.

Out of 13 communication equipment stocks that have issued dividends in the past year, the 3 communication equipment stocks with the highest dividend yields are:

Network 1 Technologies (NYSEMKT:NTIP) has an annual dividend yield of 4.5%, which is 2 percentage points higher than the communication equipment industry average of 2.19%. 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 -166.7% indicates that its high dividend yield might not be sustainable for the long-term.

Ericsson Lm Telephone Co (NASDAQ:ERIC) has an annual dividend yield of 4.3%, which is 2 percentage points higher than the communication equipment industry average of 2.19%. Ericsson Lm Telephone Co's dividend payout is not stable, having dropped more than 10% five 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 high dividend yield is sustainable for the long-term.

Tel (NASDAQ:PCTI) has an annual dividend yield of 3.53%, which is 1 percentage points higher than the communication equipment industry average of 2.19%. 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 366.7% indicates that its dividend yield might not be sustainable for the long-term.

Communication equipment stocks were up 0.33% in the last day, and up 1.31% over the last week.

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

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

Ericsson Lm Telephone Co (NASDAQ:ERIC) is the most undervalued communication equipment stock based on WallStreetZen's Valuation Score. Ericsson Lm Telephone Co has a valuation score of 71, which is 40 points higher than the communication equipment industry average of 31. It passed 5 out of 7 valuation due diligence checks.

Ericsson Lm Telephone Co's stock has dropped -51.86% in the past year. It has underperformed other stocks in the communication equipment industry by -46 percentage points.

Nokia (NYSE:NOK) is the second most undervalued communication equipment stock based on WallStreetZen's Valuation Score. Nokia has a valuation score of 71, which is 40 points higher than the communication equipment industry average of 31. It passed 5 out of 7 valuation due diligence checks.

Nokia's stock has dropped -15.38% in the past year. It has underperformed other stocks in the communication equipment industry by -9 percentage points.

Clearfield (NASDAQ:CLFD) is the third most undervalued communication equipment stock based on WallStreetZen's Valuation Score. Clearfield has a valuation score of 57, which is 26 points higher than the communication equipment industry average of 31. It passed 4 out of 7 valuation due diligence checks.

Clearfield's stock has gained 42.16% in the past year. It has overperformed other stocks in the communication equipment industry by 48 percentage points.