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 (NYSE:VZ) is the top communication service stock with a Zen Score of 50, which is 20 points higher than the communication service sector average of 30. It passed 17 out of 38 due diligence checks and has strong fundamentals. Verizon has seen its stock lose -28.6% over the past year, overperforming other communication service stocks by 15 percentage points.

Verizon has an average 1 year price target of $53.00, an upside of 36.28% from Verizon's current stock price of $38.89.

Verizon stock has a consensus Hold recommendation according to Wall Street analysts. Of the 19 analysts covering Verizon, 0% have issued a Strong Buy rating, 15.79% have issued a Buy, 73.68% have issued a Hold, while 5.26% have issued a Sell rating, and 5.26% have issued a Strong Sell.

Vodafone Group Public Co (NASDAQ:VOD) is the second best communication service stock with a Zen Score of 49, which is 19 points higher than the communication service sector average of 30. It passed 18 out of 38 due diligence checks and has strong fundamentals. Vodafone Group Public Co has seen its stock lose -29.38% over the past year, overperforming other communication service stocks by 14 percentage points.

Vodafone Group Public Co stock has a consensus Hold recommendation according to Wall Street analysts. Of the 2 analysts covering Vodafone Group Public Co, 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.

Zoom (NASDAQ:ZM) is the third best communication service stock with a Zen Score of 49, which is 19 points higher than the communication service sector average of 30. It passed 16 out of 33 due diligence checks and has strong fundamentals. Zoom has seen its stock lose -72.79% over the past year, underperforming other communication service stocks by -29 percentage points.

Zoom has an average 1 year price target of $119.55, an upside of 60.98% from Zoom's current stock price of $74.26.

Zoom stock has a consensus Hold recommendation according to Wall Street analysts. Of the 25 analysts covering Zoom, 24% have issued a Strong Buy rating, 8% have issued a Buy, 56% have issued a Hold, while 4% have issued a Sell rating, and 8% have issued a Strong Sell.

Out of 26 communication service stocks that have issued dividends in the past year, the 3 communication service stocks with the highest dividend yields are:

Telecom Argentina Sa (NYSE:TEO) has an annual dividend yield of N/A, which is N/A percentage points lower than the communication service sector average of 5.77%. Telecom Argentina Sa's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. Telecom Argentina Sa's dividend has not shown consistent growth over the last 10 years.

Telecom Argentina Sa's dividend payout ratio of 220.7% indicates that its dividend yield might not be sustainable for the long-term.

Spok Holdings (NASDAQ:SPOK) has an annual dividend yield of 14.66%, which is 9 percentage points higher than the communication service sector average of 5.77%. 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 -69.4% indicates that its high dividend yield might not be sustainable for the long-term.

Lumen Technologies (NYSE:LUMN) has an annual dividend yield of 13.16%, which is 7 percentage points higher than the communication service sector average of 5.77%. 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 51.5% indicates that its high dividend yield is sustainable for the long-term.

Communication service stocks were down -0.75% in the last day, and down -7.48% 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:

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 63 points higher than the communication service sector average of 37. It passed 7 out of 7 valuation due diligence checks.

Millicom International Cellular Sa's stock has dropped -68.45% in the past year. It has underperformed other stocks in the communication service sector by -25 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 63 points higher than the communication service sector average of 37. It passed 7 out of 7 valuation due diligence checks.

Veon's stock has dropped -84.02% in the past year. It has underperformed other stocks in the communication service sector by -40 percentage points.

Vodafone Group Public Co (NASDAQ:VOD) is the third most undervalued communication service stock based on WallStreetZen's Valuation Score. Vodafone Group Public Co has a valuation score of 86, which is 49 points higher than the communication service sector average of 37. It passed 6 out of 7 valuation due diligence checks.

Vodafone Group Public Co's stock has dropped -29.38% in the past year. It has overperformed other stocks in the communication service sector by 14 percentage points.