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:

Gravity Co (NASDAQ:GRVY) is the top communication service stock with a Zen Score of 65, which is 38 points higher than the communication service sector average of 27. It passed 21 out of 33 due diligence checks and has strong fundamentals. Gravity Co has seen its stock return 53.99% over the past year, overperforming other communication service stocks by 57 percentage points.

Lendway (NASDAQ:LDWY) is the second best communication service stock with a Zen Score of 60, which is 33 points higher than the communication service sector average of 27. It passed 19 out of 33 due diligence checks and has strong fundamentals. Lendway has seen its stock lose -14.17% over the past year, underperforming other communication service stocks by -11 percentage points.

Perion Network (NASDAQ:PERI) is the third best communication service stock with a Zen Score of 60, which is 33 points higher than the communication service sector average of 27. It passed 19 out of 33 due diligence checks and has strong fundamentals. Perion Network has seen its stock return 45.21% over the past year, overperforming other communication service stocks by 49 percentage points.

Perion Network has an average 1 year price target of $40.80, an upside of 36% from Perion Network's current stock price of $30.00.

Perion Network stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Perion Network, 20% have issued a Strong Buy rating, 60% have issued a Buy, 20% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 55 communication service stocks that have issued dividends in the past year, the 3 communication service stocks with the highest dividend yields are:

Amc Entertainment (NYSE:AMC) has an annual dividend yield of N/A, which is N/A percentage points lower than the communication service sector average of 4.33%. Amc Entertainment's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Amc Entertainment's dividend has not shown consistent growth over the last 10 years.

Amc Entertainment's dividend payout ratio of -1.5% 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 communication service sector average of 4.33%. 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.

Lumen Technologies (NYSE:LUMN) has an annual dividend yield of N/A, which is N/A percentage points lower than the communication service sector average of 4.33%. 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.

Communication service stocks were down -0.12% in the last day, and down -2.23% 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:

Gravity Co (NASDAQ:GRVY) is the most undervalued communication service stock based on WallStreetZen's Valuation Score. Gravity Co has a valuation score of 100, which is 74 points higher than the communication service sector average of 26. It passed 7 out of 7 valuation due diligence checks.

Gravity Co's stock has gained 53.99% in the past year. It has overperformed other stocks in the communication service sector by 57 percentage points.

Glory Star New Media Group Holdings (NASDAQ:GSMG) is the second most undervalued communication service stock based on WallStreetZen's Valuation Score. Glory Star New Media Group Holdings has a valuation score of 100, which is 74 points higher than the communication service sector average of 26. It passed 7 out of 7 valuation due diligence checks.

Glory Star New Media Group Holdings's stock has dropped -74.66% in the past year. It has underperformed other stocks in the communication service sector by -71 percentage points.

Jiayin Group (NASDAQ:JFIN) is the third most undervalued communication service stock based on WallStreetZen's Valuation Score. Jiayin Group has a valuation score of 100, which is 74 points higher than the communication service sector average of 26. It passed 7 out of 7 valuation due diligence checks.

Jiayin Group's stock has gained 106.66% in the past year. It has overperformed other stocks in the communication service sector by 110 percentage points.