Sectors & IndustriesCommunication Services

Best Communication Service Stocks to Buy Now (2023)

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

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

Zoom (NASDAQ:ZM) is the top communication service stock with a Zen Score of 56, which is 28 points higher than the communication service sector average of 28. It passed 19 out of 33 due diligence checks and has strong fundamentals. Zoom has seen its stock lose -45.51% over the past year, underperforming other communication service stocks by -15 percentage points.

Zoom has an average 1 year price target of $97.29, an upside of 22.31% from Zoom's current stock price of $79.54.

Zoom stock has a consensus Hold recommendation according to Wall Street analysts. Of the 24 analysts covering Zoom, 16.67% have issued a Strong Buy rating, 8.33% have issued a Buy, 66.67% have issued a Hold, while 4.17% have issued a Sell rating, and 4.17% have issued a Strong Sell.

Interdigital (NASDAQ:IDCC) is the second best communication service stock with a Zen Score of 51, which is 23 points higher than the communication service sector average of 28. It passed 18 out of 38 due diligence checks and has strong fundamentals. Interdigital has seen its stock return 3.53% over the past year, overperforming other communication service stocks by 34 percentage points.

Interdigital has an average 1 year price target of $70.00, a downside of -1.81% from Interdigital's current stock price of $71.29.

Interdigital stock has a consensus Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Interdigital, 50% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a Hold, while 50% have issued a Sell rating, and 0% have issued a Strong Sell.

Verizon (NYSE:VZ) is the third best communication service stock with a Zen Score of 47, which is 19 points higher than the communication service sector average of 28. It passed 16 out of 38 due diligence checks and has strong fundamentals. Verizon has seen its stock lose -22.11% over the past year, overperforming other communication service stocks by 8 percentage points.

Verizon has an average 1 year price target of $44.80, an upside of 7.93% from Verizon's current stock price of $41.51.

Verizon stock has a consensus Hold recommendation according to Wall Street analysts. Of the 18 analysts covering Verizon, 5.56% have issued a Strong Buy rating, 16.67% have issued a Buy, 66.67% have issued a Hold, while 5.56% have issued a Sell rating, and 5.56% have issued a Strong Sell.

Out of 24 communication service stocks that have issued dividends in the past year, the 3 communication service stocks with the highest dividend yields are:

Spok Holdings (NASDAQ:SPOK) has an annual dividend yield of 15.15%, which is 10 percentage points higher than the communication service sector average of 4.97%. Spok Holdings's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Spok Holdings's dividend has shown consistent growth over the last 10 years.

Spok Holdings's dividend payout ratio of -108.4% indicates that its high dividend yield might not be sustainable for the long-term.

Vodafone Group Public Co (NASDAQ:VOD) has an annual dividend yield of 8.55%, which is 4 percentage points higher than the communication service sector average of 4.97%. Vodafone Group Public Co's dividend payout is not stable, having dropped more than 10% eight 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 196.4% indicates that its high dividend yield might not be sustainable for the long-term.

Pldt (NYSE:PHI) has an annual dividend yield of 8.16%, which is 3 percentage points higher than the communication service sector average of 4.97%. Pldt's dividend payout is not stable, having dropped more than 10% seven 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 69.9% indicates that its high dividend yield is sustainable for the long-term.

Communication service stocks were down -1.99% in the last day, and up 1.79% over the last week.

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

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

Consolidated Communications Holdings (NASDAQ:CNSL) is the most undervalued communication service stock based on WallStreetZen's Valuation Score. Consolidated Communications Holdings has a valuation score of 100, which is 70 points higher than the communication service sector average of 30. It passed 7 out of 7 valuation due diligence checks.

Consolidated Communications Holdings's stock has dropped -38.29% in the past year. It has underperformed other stocks in the communication service sector by -8 percentage points.

Millicom International Cellular Sa (NASDAQ:TIGO) is the second most undervalued communication service stock based on WallStreetZen's Valuation Score. Millicom International Cellular Sa has a valuation score of 100, which is 70 points higher than the communication service sector average of 30. It passed 7 out of 7 valuation due diligence checks.

Millicom International Cellular Sa's stock has dropped -39.93% in the past year. It has underperformed other stocks in the communication service sector by -10 percentage points.

Kt (NYSE:KT) is the third most undervalued communication service stock based on WallStreetZen's Valuation Score. Kt has a valuation score of 71, which is 41 points higher than the communication service sector average of 30. It passed 5 out of 7 valuation due diligence checks.

Kt's stock has gained 2.35% in the past year. It has overperformed other stocks in the communication service sector by 33 percentage points.