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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.

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:

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: A.

Ooma (NYSE:OOMA) has a Due Diligence Score of 47, which is 22 points higher than the telecom industry average of 25.

OOMA passed 16 out of 33 due diligence checks and has strong fundamentals. Ooma has seen its stock return 29.97% over the past year, overperforming other telecom stocks by 44 percentage points.

Ooma has an average 1 year price target of $21.77, an upside of 27.07% from Ooma's current stock price of $17.13.

Ooma stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 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.

Idt (NYSE:IDT) is the #2 top telecom stock out of 55 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Idt (NYSE:IDT) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: A, and AI: C.

Idt (NYSE:IDT) has a Due Diligence Score of 37, which is 12 points higher than the telecom industry average of 25.

IDT passed 15 out of 38 due diligence checks and has average fundamentals. Idt has seen its stock lose -6.52% over the past year, overperforming other telecom stocks by 8 percentage points.

Telefonica Brasil Sa (NYSE:VIV) is the #3 top telecom stock out of 55 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Telefonica Brasil Sa (NYSE:VIV) is: Value: B, Growth: B, Momentum: C, Sentiment: F, Safety: A, Financials: B, and AI: A.

Telefonica Brasil Sa (NYSE:VIV) has a Due Diligence Score of 28, which is 3 points higher than the telecom industry average of 25.

VIV passed 10 out of 38 due diligence checks and has average fundamentals. Telefonica Brasil Sa has seen its stock return 24.37% over the past year, overperforming other telecom stocks by 39 percentage points.

Telefonica Brasil Sa has an average 1 year price target of $15.95, an upside of 24.51% from Telefonica Brasil Sa's current stock price of $12.81.

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.

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

Gci Liberty (NASDAQ:GLIBA) has an annual dividend yield of 13.28%, which is 10 percentage points higher than the telecom industry average of 3.51%.

Gci Liberty's dividend payout ratio of -26.9% indicates that its high dividend yield might not be sustainable for the long-term.

Cogent Communications Holdings (NASDAQ:CCOI) has an annual dividend yield of 6.39%, which is 3 percentage points higher than the telecom industry average of 3.51%. 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 -58.3% indicates that its high dividend yield might not be sustainable for the long-term.

Verizon (NYSE:VZ) has an annual dividend yield of 6.1%, which is 3 percentage points higher than the telecom industry average of 3.51%. 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.

Telecom stocks were down -1.58% in the last day, and down -3.67% over the last week. Fabricai was the among the top losers in the telecom services industry, dropping -25.44% yesterday.

Shares of automaker and auto parts companies are trading lower as strong U.S. job growth in May helps curtail expectations for a Fed rate cut, which may pressure consumer spending through high borrowing costs.

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:

Kt (NYSE:KT) 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.

Kt has a valuation score of 57, which is 39 points higher than the telecom industry average of 18. It passed 4 out of 7 valuation due diligence checks.

Kt's stock has dropped -7.83% in the past year. It has overperformed other stocks in the telecom industry by 7 percentage points.

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 -4 points higher than the telecom industry average of 18. 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 -20.7% in the past year. It has underperformed other stocks in the telecom industry by -6 percentage points.

Cable One (NYSE:CABO) is the third most undervalued telecom stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Cable One has a valuation score of 14, which is -4 points higher than the telecom industry average of 18. It passed 1 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates CABO a Valuation Rating of "B".

Cable One's stock has dropped -67.77% in the past year. It has underperformed other stocks in the telecom industry by -53 percentage points.

34.38% of telecom stocks rated by analysts are a strong buy right now. On average, analysts expect telecom stocks to rise by 35.7% over the next year.

2.22% of telecom stocks have a Zen Rating of A (Strong Buy), 20% of telecom stocks are rated B (Buy), 60% are rated C (Hold), 6.67% are rated D (Sell), and 11.11% are rated F (Strong Sell).