Best Telecom Stocks to Buy Now (2026)
Top telecom stocks in 2026 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best telecom stocks to buy now. Learn More.

Industry: Telecom Services
C
Telecom is Zen Rated C and is the 78th ranked industry out of 145 stock market industries
Learn how the Zen Ratings work
Ticker
Company
Zen Rating
Value
Growth
Momentum
Sentiment
Safety
Financials
AI
1w Zen Rating
1m Zen Rating
3m Zen Rating
1y Zen Rating
OOMA
OOMA INC
ACACACCCAAAA
TIMB
TIM SA
ABBBCBBAAAAC
VIV
TELEFONICA BRASIL SA
ACBBCBBAAAAC
IDT
IDT CORP
BCCCBCABABAA
KYIV
KYIVSTAR GROUP LTD
BBBCCDACBAB

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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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Telecom Stocks FAQ

What are the best telecom stocks to buy right now in May 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 telecommunication stocks to buy right now are:

1. Ooma (NYSE:OOMA)


Ooma (NYSE:OOMA) is the #1 top telecom 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 Ooma (NYSE:OOMA) is: Value: C, Growth: A, Momentum: C, Sentiment: A, Safety: C, Financials: C, and AI: C.

Ooma (NYSE:OOMA) has a Due Diligence Score of 42, which is 15 points higher than the telecom industry average of 27.

OOMA passed 14 out of 33 due diligence checks and has strong fundamentals. Ooma has seen its stock return 45.93% over the past year, overperforming other telecom stocks by 56 percentage points.

Ooma has an average 1 year price target of $18.15, an upside of 2.37% from Ooma's current stock price of $17.73.

Ooma stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Ooma, 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. Tim Sa (NYSE:TIMB)


Tim Sa (NYSE:TIMB) is the #2 top telecom 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 Tim Sa (NYSE:TIMB) is: Value: B, Growth: B, Momentum: B, Sentiment: C, Safety: B, Financials: B, and AI: A.

Tim Sa (NYSE:TIMB) has a Due Diligence Score of 23, which is -4 points lower than the telecom industry average of 27. Although this number is below the industry average, our proven quant model rates TIMB as a "A".

TIMB passed 9 out of 38 due diligence checks and has weak fundamentals. Tim Sa has seen its stock return 55.11% over the past year, overperforming other telecom stocks by 65 percentage points.

Tim Sa has an average 1 year price target of $27.83, an upside of 8.55% from Tim Sa's current stock price of $25.64.

Tim Sa stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Tim Sa, 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.

3. Telefonica Brasil Sa (NYSE:VIV)


Telefonica Brasil Sa (NYSE:VIV) is the #3 top telecom 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 Telefonica Brasil Sa (NYSE:VIV) is: Value: C, Growth: B, Momentum: B, Sentiment: C, Safety: B, Financials: B, and AI: A.

Telefonica Brasil Sa (NYSE:VIV) has a Due Diligence Score of 16, which is -11 points lower than the telecom industry average of 27. Although this number is below the industry average, our proven quant model rates VIV as a "A".

VIV passed 7 out of 38 due diligence checks and has weak fundamentals. Telefonica Brasil Sa has seen its stock return 64.61% over the past year, overperforming other telecom stocks by 75 percentage points.

Telefonica Brasil Sa has an average 1 year price target of $15.90, an upside of 0.82% from Telefonica Brasil Sa's current stock price of $15.77.

Telefonica Brasil Sa stock has a consensus Hold recommendation according to Wall Street analysts. Of the 2 analysts covering Telefonica Brasil Sa, 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 telecom stocks with highest dividends?

Out of 20 telecom stocks that have issued dividends in the past year, the 3 telecom stocks with the highest dividend yields are:

1. Cogent Communications Holdings (NASDAQ:CCOI)


Cogent Communications Holdings (NASDAQ:CCOI) has an annual dividend yield of 8.92%, which is 6 percentage points higher than the telecom industry average of 3.03%. Cogent Communications Holdings's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Cogent Communications Holdings's dividend has not shown consistent growth over the last 10 years.

Cogent Communications Holdings's dividend payout ratio of -80.3% indicates that its high dividend yield might not be sustainable for the long-term.

2. Gci Liberty (NASDAQ:GLIBA)


Gci Liberty (NASDAQ:GLIBA) has an annual dividend yield of 8.35%, which is 5 percentage points higher than the telecom industry average of 3.03%.

Gci Liberty's dividend payout ratio of -28.9% indicates that its high dividend yield might not be sustainable for the long-term.

3. Verizon (NYSE:VZ)


Verizon (NYSE:VZ) has an annual dividend yield of 5.75%, which is 3 percentage points higher than the telecom industry average of 3.03%. Verizon's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Verizon's dividend has shown consistent growth over the last 10 years.

Verizon's dividend payout ratio of 67.5% indicates that its high dividend yield is sustainable for the long-term.

Why are telecom stocks down?

Telecom stocks were down -0.4% in the last day, and down -5.37% over the last week. Cable One was the among the top losers in the telecom services industry, dropping -18.01% yesterday.

Cable One shares are trading lower after the company reported worse-than-expected Q1 financial results. Also, Wells Fargo lowered its price target on the stock from $90 to $70.

What are the most undervalued telecom 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 telecom stocks right now are:

1. Veon (NASDAQ:VEON)


Veon (NASDAQ:VEON) is the most undervalued telecom stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Veon has a valuation score of 57, which is 34 points higher than the telecom industry average of 23. It passed 4 out of 7 valuation due diligence checks.

Veon's stock has gained 10.14% in the past year. It has overperformed other stocks in the telecom industry by 20 percentage points.

2. Pldt (NYSE:PHI)


Pldt (NYSE:PHI) is the second most undervalued telecom stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Pldt has a valuation score of 14, which is -9 points higher than the telecom industry average of 23. It passed 1 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates PHI a Valuation Rating of "A".

Pldt's stock has dropped -14.88% in the past year. It has underperformed other stocks in the telecom industry by -5 percentage points.

3. Kt (NYSE:KT)


Kt (NYSE:KT) is the third most undervalued telecom stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Kt has a valuation score of 43, which is 20 points higher than the telecom industry average of 23. It passed 3 out of 7 valuation due diligence checks.

Kt's stock has gained 9.76% in the past year. It has overperformed other stocks in the telecom industry by 20 percentage points.

Are telecom stocks a good buy now?

35.29% of telecom stocks rated by analysts are a strong buy right now. On average, analysts expect telecom stocks to rise by 21.36% over the next year.

6.82% of telecom stocks have a Zen Rating of A (Strong Buy), 13.64% of telecom stocks are rated B (Buy), 61.36% are rated C (Hold), 13.64% are rated D (Sell), and 4.55% are rated F (Strong Sell).

What is the average p/e ratio of the telecom services industry?

The average P/E ratio of the telecom services industry is 7.3x.
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.