Sectors & IndustriesCommunication Services

Best Communication Service Stocks to Buy Now (2024)

Top communication service stocks in 2024 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:

Interdigital (NASDAQ:IDCC) 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 24 out of 38 due diligence checks and has strong fundamentals. Interdigital has seen its stock return 46.05% over the past year, overperforming other communication service stocks by 48 percentage points.

Interdigital has an average 1 year price target of $100.00, an upside of 1.29% from Interdigital's current stock price of $98.73.

Interdigital stock has a consensus Sell recommendation according to Wall Street analysts. Of the 1 analyst covering Interdigital, 0% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a Hold, while 100% have issued a Sell rating, and 0% have issued a Strong Sell.

Cogent Communications Holdings (NASDAQ:CCOI) is the second best communication service stock with a Zen Score of 64, which is 37 points higher than the communication service sector average of 27. It passed 24 out of 38 due diligence checks and has strong fundamentals. Cogent Communications Holdings has seen its stock lose -7.21% over the past year, underperforming other communication service stocks by -5 percentage points.

Cogent Communications Holdings has an average 1 year price target of $82.00, an upside of 27.77% from Cogent Communications Holdings's current stock price of $64.18.

Cogent Communications Holdings stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Cogent Communications Holdings, 33.33% have issued a Strong Buy rating, 16.67% have issued a Buy, 50% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Opera (NASDAQ:OPRA) is the third best communication service stock with a Zen Score of 62, which is 35 points higher than the communication service sector average of 27. It passed 22 out of 38 due diligence checks and has strong fundamentals. Opera has seen its stock return 7.96% over the past year, overperforming other communication service stocks by 10 percentage points.

Opera has an average 1 year price target of $20.75, an upside of 66.27% from Opera's current stock price of $12.48.

Opera stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Opera, 50% have issued a Strong Buy rating, 50% 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 50 communication service stocks that have issued dividends in the past year, the 3 communication service stocks with the highest dividend yields are:

Trivago Nv (NASDAQ:TRVG) has an annual dividend yield of 110.4%, which is 104 percentage points higher than the communication service sector average of 6.54%.

Trivago Nv's dividend payout ratio of -101.1% indicates that its high dividend yield might not be sustainable for the long-term.

Weibo (NASDAQ:WB) has an annual dividend yield of 19.37%, which is 13 percentage points higher than the communication service sector average of 6.54%.

Weibo's dividend payout ratio of 115.2% indicates that its high dividend yield might not be sustainable for the long-term.

Saga Communications (NASDAQ:SGA) has an annual dividend yield of 15.8%, which is 9 percentage points higher than the communication service sector average of 6.54%. Saga Communications's dividend payout is not stable, having dropped more than 10% nine times in the last 10 years. Saga Communications's dividend has shown consistent growth over the last 10 years.

Saga Communications's dividend payout ratio of 248.4% indicates that its high dividend yield might not be sustainable for the long-term.

Communication service stocks were down -1.51% in the last day, and down -2.52% over the last week. Warner Bros Discovery was the among the top losers in the communication services sector, dropping -9.69% yesterday.

Warner Bros. Discovery shares are trading lower on reports NBCUniversal is preparing an offer that could take NBA rights from TNT.

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

Doubledown Interactive Co (NASDAQ:DDI) is the most undervalued communication service stock based on WallStreetZen's Valuation Score. Doubledown Interactive 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.

Doubledown Interactive Co's stock has gained 24.61% in the past year. It has overperformed other stocks in the communication service sector by 26 percentage points.

Nexstar Media Group (NASDAQ:NXST) is the second most undervalued communication service stock based on WallStreetZen's Valuation Score. Nexstar Media 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.

Nexstar Media Group's stock has dropped -7.78% in the past year. It has underperformed other stocks in the communication service sector by -6 percentage points.

Opera (NASDAQ:OPRA) is the third most undervalued communication service stock based on WallStreetZen's Valuation Score. Opera 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.

Opera's stock has gained 7.96% in the past year. It has overperformed other stocks in the communication service sector by 10 percentage points.