Sectors & IndustriesCommunication Services

Best Communication Service Stocks to Buy Now (2022)

Top communication service stocks in 2022 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:

VERIZON COMMUNICATIONS (NYSE:VZ) is the top communication service stock with a Zen Score of 61, which is 31 points higher than the communication service sector average of 30. It passed 22 out of 38 due diligence checks and has strong fundamentals. VERIZON COMMUNICATIONS has seen its stock lose -14.5% over the past year, overperforming other communication service stocks by 15 percentage points.

VERIZON COMMUNICATIONS has an average 1 year price target of $56.63, an upside of 15.82% from VERIZON COMMUNICATIONS's current stock price of $48.89.

VERIZON COMMUNICATIONS stock has a consensus Hold recommendation according to Wall Street analysts. Of the 9 analysts covering VERIZON COMMUNICATIONS, 0% have issued a Strong Buy rating, 11.11% have issued a Buy, 77.78% have issued a Hold, while 0% have issued a Sell rating, and 11.11% have issued a Strong Sell.

Zoom (NASDAQ:ZM) is the second best communication service stock with a Zen Score of 58, which is 28 points higher than the communication service sector average of 30. It passed 19 out of 33 due diligence checks and has strong fundamentals. Zoom has seen its stock lose -72.93% over the past year, underperforming other communication service stocks by -43 percentage points.

Zoom has an average 1 year price target of $231.09, an upside of 172.87% from Zoom's current stock price of $84.69.

Zoom stock has a consensus Buy recommendation according to Wall Street analysts. Of the 24 analysts covering Zoom, 33.33% have issued a Strong Buy rating, 8.33% have issued a Buy, 54.17% have issued a Hold, while 4.17% have issued a Sell rating, and 0% have issued a Strong Sell.

INTERDIGITAL (NASDAQ:IDCC) is the third best communication service stock with a Zen Score of 55, which is 25 points higher than the communication service sector average of 30. It passed 20 out of 38 due diligence checks and has strong fundamentals. INTERDIGITAL has seen its stock lose -14.91% over the past year, overperforming other communication service stocks by 15 percentage points.

INTERDIGITAL has an average 1 year price target of $104.00, an upside of 74.41% from INTERDIGITAL's current stock price of $59.63.

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.

Out of 27 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 9.4%, which is 4 percentage points higher than the communication service sector average of 4.95%. SPOK HOLDINGS's dividend payout is not stable, having dropped more than 10% three 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 -49.1% indicates that its high dividend yield might not be sustainable for the long-term.

AT&T (NYSE:T) has an annual dividend yield of 9.08%, which is 4 percentage points higher than the communication service sector average of 4.95%. AT&T's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. AT&T's dividend has not shown consistent growth over the last 10 years.

AT&T's dividend payout ratio of 76.9% indicates that its high dividend yield is sustainable for the long-term.

LUMEN TECHNOLOGIES (NYSE:LUMN) has an annual dividend yield of 8.77%, which is 4 percentage points higher than the communication service sector average of 4.95%. LUMEN TECHNOLOGIES's dividend payout is not stable, having dropped more than 10% two 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 48.3% indicates that its high dividend yield is sustainable for the long-term.

Communication service stocks were down -1.57% in the last day, and up 4.91% over the last week. QUALTEK SERVICES was the among the top losers in the communication services sector, dropping -22.05% yesterday.

Shares of several companies in the broader industrial sector are trading lower following weak retail earnings this week. Anticipation of further Fed policy tightening has continued to weigh on stocks across sectors.

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

MILLICOM INTERNATIONAL CELLULAR SA (NASDAQ:TIGO) is the most undervalued communication service stock based on WallStreetZen's Valuation Score. MILLICOM INTERNATIONAL CELLULAR SA has a valuation score of 100, which is 68 points higher than the communication service sector average of 32. It passed 7 out of 7 valuation due diligence checks.

MILLICOM INTERNATIONAL CELLULAR SA's stock has dropped -53.33% in the past year. It has underperformed other stocks in the communication service sector by -24 percentage points.

VEON (NASDAQ:VEON) is the second most undervalued communication service stock based on WallStreetZen's Valuation Score. VEON has a valuation score of 100, which is 68 points higher than the communication service sector average of 32. It passed 7 out of 7 valuation due diligence checks.

VEON's stock has dropped -72.99% in the past year. It has underperformed other stocks in the communication service sector by -43 percentage points.

VODAFONE GROUP PUBLIC (NASDAQ:VOD) is the third most undervalued communication service stock based on WallStreetZen's Valuation Score. VODAFONE GROUP PUBLIC has a valuation score of 86, which is 54 points higher than the communication service sector average of 32. It passed 6 out of 7 valuation due diligence checks.

VODAFONE GROUP PUBLIC's stock has dropped -19.76% in the past year. It has overperformed other stocks in the communication service sector by 10 percentage points.