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Best Telecom Stocks to Buy Now (2023)

Top telecom stocks in 2023 ranked by overall Zen Score. See the best telecom stocks to buy now, according to analyst forecasts for the telecom services industry.

According to Zen Score, the 3 best telecommunication stocks to buy right now are:

Interdigital (NASDAQ:IDCC) is the top telecom stock with a Zen Score of 54, which is 28 points higher than the telecom industry average of 26. It passed 19 out of 38 due diligence checks and has strong fundamentals. Interdigital has seen its stock return 81.27% over the past year, overperforming other telecom stocks by 92 percentage points.

Interdigital has an average 1 year price target of $105.00, an upside of 28.21% from Interdigital's current stock price of $81.90.

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

Cogent Communications Holdings (NASDAQ:CCOI) is the second best telecom stock with a Zen Score of 52, which is 26 points higher than the telecom industry average of 26. It passed 19 out of 38 due diligence checks and has strong fundamentals. Cogent Communications Holdings has seen its stock return 23.9% over the past year, overperforming other telecom stocks by 34 percentage points.

Cogent Communications Holdings has an average 1 year price target of $79.00, an upside of 19.72% from Cogent Communications Holdings's current stock price of $65.99.

Cogent Communications Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Cogent Communications Holdings, 28.57% have issued a Strong Buy rating, 42.86% have issued a Buy, 28.57% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Verizon (NYSE:VZ) is the third best telecom stock with a Zen Score of 52, which is 26 points higher than the telecom industry average of 26. It passed 18 out of 38 due diligence checks and has strong fundamentals. Verizon has seen its stock lose -17.22% over the past year, underperforming other telecom stocks by -7 percentage points.

Verizon has an average 1 year price target of $42.73, an upside of 27.16% from Verizon's current stock price of $33.60.

Verizon stock has a consensus Buy recommendation according to Wall Street analysts. Of the 11 analysts covering Verizon, 18.18% have issued a Strong Buy rating, 36.36% have issued a Buy, 45.45% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 23 telecom stocks that have issued dividends in the past year, the 3 telecom stocks with the highest dividend yields are:

Lumen Technologies (NYSE:LUMN) has an annual dividend yield of N/A, which is N/A percentage points lower than the telecom industry average of 4.4%. Lumen Technologies's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Lumen Technologies's dividend has not shown consistent growth over the last 10 years.

Lumen Technologies's dividend payout ratio of -2.3% indicates that its dividend yield might not be sustainable for the long-term.

America Movil Sab De Cv (NYSE:AMX) has an annual dividend yield of N/A, which is N/A percentage points lower than the telecom industry average of 4.4%. America Movil Sab De Cv's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. America Movil Sab De Cv's dividend has shown consistent growth over the last 10 years.

America Movil Sab De Cv's dividend payout ratio of 4,011.3% indicates that its dividend yield might not be sustainable for the long-term.

Pldt (NYSE:PHI) has an annual dividend yield of 9.92%, which is 6 percentage points higher than the telecom industry average of 4.4%. Pldt's dividend payout is not stable, having dropped more than 10% eight times in the last 10 years. Pldt's dividend has not shown consistent growth over the last 10 years.

Pldt's dividend payout ratio of 151.8% indicates that its high dividend yield might not be sustainable for the long-term.

Telecom stocks were up 0.24% in the last day, and up 1.44% over the last week.

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

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

Dish Network (NASDAQ:DISH) is the most undervalued telecom stock based on WallStreetZen's Valuation Score. Dish Network has a valuation score of 71, which is 42 points higher than the telecom industry average of 29. It passed 5 out of 7 valuation due diligence checks.

Dish Network's stock has dropped -60.33% in the past year. It has underperformed other stocks in the telecom industry by -50 percentage points.

Liberty Latin America (NASDAQ:LILA) is the second most undervalued telecom stock based on WallStreetZen's Valuation Score. Liberty Latin America has a valuation score of 71, which is 42 points higher than the telecom industry average of 29. It passed 5 out of 7 valuation due diligence checks.

Liberty Latin America's stock has gained 25.61% in the past year. It has overperformed other stocks in the telecom industry by 36 percentage points.

Kt (NYSE:KT) is the third most undervalued telecom stock based on WallStreetZen's Valuation Score. Kt has a valuation score of 71, which is 42 points higher than the telecom industry average of 29. It passed 5 out of 7 valuation due diligence checks.

Kt's stock has dropped -4.15% in the past year. It has overperformed other stocks in the telecom industry by 6 percentage points.