Best Telecom Stocks to Buy Now (2025)
Top telecom stocks in 2025 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
B
Telecom is Zen Rated B and is the 42nd 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
OOMA
OOMA INC
20
0
57
11
10
IHS
IHS HOLDING LTD
9
0
14
0
20
IDT
IDT CORP
44
43
86
0
70
20
CXDO
CREXENDO INC
40
14
100
56
30
0
VEON
VEON LTD
18
29
43
0
20
0

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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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Telecom Stocks FAQ

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

1. Ooma (NYSE:OOMA)


Ooma (NYSE:OOMA) is the #1 top telecom stock out of 54 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: B, Growth: B, Momentum: B, Sentiment: A, Safety: C, Financials: B, and AI: B.

Ooma (NYSE:OOMA) has a Due Diligence Score of 20, which is -8 points lower than the telecom industry average of 28. Although this number is below the industry average, our proven quant model rates OOMA as a "A".

OOMA passed 6 out of 33 due diligence checks and has weak fundamentals. Ooma has seen its stock return 61.78% over the past year, overperforming other telecom stocks by 45 percentage points.

Ooma has an average 1 year price target of $17.63, an upside of 45.06% from Ooma's current stock price of $12.15.

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

2. Ihs Holding (NYSE:IHS)


Ihs Holding (NYSE:IHS) is the #2 top telecom stock out of 54 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 Ihs Holding (NYSE:IHS) is: Value: B, Growth: B, Momentum: A, Sentiment: C, Safety: C, Financials: B, and AI: A.

Ihs Holding (NYSE:IHS) has a Due Diligence Score of 9, which is -19 points lower than the telecom industry average of 28. Although this number is below the industry average, our proven quant model rates IHS as a "A".

IHS passed 3 out of 33 due diligence checks and has weak fundamentals. Ihs Holding has seen its stock return 37.29% over the past year, overperforming other telecom stocks by 21 percentage points.

Ihs Holding has an average 1 year price target of $8.67, an upside of 74.39% from Ihs Holding's current stock price of $4.97.

Ihs Holding stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Ihs Holding, 66.67% have issued a Strong Buy rating, 0% have issued a Buy, 33.33% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Idt (NYSE:IDT)


Idt (NYSE:IDT) is the #3 top telecom stock out of 54 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 Idt (NYSE:IDT) is: Value: C, Growth: B, Momentum: B, Sentiment: C, Safety: C, Financials: A, and AI: A.

Idt (NYSE:IDT) has a Due Diligence Score of 44, which is 16 points higher than the telecom industry average of 28.

IDT passed 17 out of 38 due diligence checks and has strong fundamentals. Idt has seen its stock return 39.27% over the past year, overperforming other telecom stocks by 23 percentage points.

What are the telecom stocks with highest dividends?

Out of 22 telecom stocks that have issued dividends in the past year, the 3 telecom stocks with the highest dividend yields are:

1. Bce (NYSE:BCE)


Bce (NYSE:BCE) has an annual dividend yield of 17.19%, which is 13 percentage points higher than the telecom industry average of 4.21%. Bce's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Bce's dividend has shown consistent growth over the last 10 years.

Bce's dividend payout ratio of 3,147.7% indicates that its high dividend yield might not be sustainable for the long-term.

2. Vodafone Group Public Co (NASDAQ:VOD)


Vodafone Group Public Co (NASDAQ:VOD) has an annual dividend yield of 7.49%, which is 3 percentage points higher than the telecom industry average of 4.21%. Vodafone Group Public Co's dividend payout is not stable, having dropped more than 10% seven times in the last 10 years. Vodafone Group Public Co's dividend has not shown consistent growth over the last 10 years.

Vodafone Group Public Co's dividend payout ratio of 72.3% indicates that its high dividend yield is sustainable for the long-term.

3. GPA (NYSE:TLK)


GPA (NYSE:TLK) has an annual dividend yield of 7.25%, which is 3 percentage points higher than the telecom industry average of 4.21%. GPA's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. GPA's dividend has not shown consistent growth over the last 10 years.

GPA's dividend payout ratio of 78.4% indicates that its high dividend yield is sustainable for the long-term.

Why are telecom stocks down?

Telecom stocks were down -0.94% in the last day, and up 3.18% over the last week.

We couldn't find a catalyst for why telecom stocks are down.

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 29, which is 3 points higher than the telecom industry average of 26. It passed 2 out of 7 valuation due diligence checks.

Veon's stock has gained 86.9% in the past year. It has overperformed other stocks in the telecom industry by 70 percentage points.

2. Comcast (NASDAQ:CMCSA)


Comcast (NASDAQ:CMCSA) 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.

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

Comcast's stock has dropped -11.47% in the past year. It has underperformed other stocks in the telecom industry by -28 percentage points.

3. Millicom International Cellular Sa (NASDAQ:TIGO)


Millicom International Cellular Sa (NASDAQ:TIGO) 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.

Millicom International Cellular Sa has a valuation score of 57, which is 31 points higher than the telecom industry average of 26. It passed 4 out of 7 valuation due diligence checks.

Millicom International Cellular Sa's stock has gained 64.4% in the past year. It has overperformed other stocks in the telecom industry by 48 percentage points.

Are telecom stocks a good buy now?

42.42% of telecom stocks rated by analysts are a strong buy right now. On average, analysts expect telecom stocks to rise by 28.66% over the next year.

10.64% of telecom stocks have a Zen Rating of A (Strong Buy), 14.89% of telecom stocks are rated B (Buy), 63.83% are rated C (Hold), 6.38% are rated D (Sell), and 4.26% 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 14.01x.
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.