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.

Sector: Communication Services

Price Valuation Financials Forecast Earnings & Revenue Dividends Ownership Technicals

Ticker	Company	Zen Score	Valuation Score	Financials Score	Forecast Score	Performance Score	Dividends Score
GRVY	GRAVITY CO LTD	68	100	100	0	70	–
IDCC	INTERDIGITAL INC	65	86	71	0	90	80
CCOI	COGENT COMMUNICATIONS HOLDINGS INC	64	57	71	22	90	80
OPRA	OPERA LTD	62	100	86	22	40	60
DRCT	DIRECT DIGITAL HOLDINGS INC	61	86	43	67	50	–
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Communication Service Industries

Industry	Stocks	1d %	1w %	1m %	1y %	P/E ratio	P/B Ratio	ROE	ROA	ROCE	Upside/Downside	Consensus
Advertising Agencies	42	+0.71%	+3.52%	-4.67%	+8.25%	29.41x	3.41x	+24.65%	+3.22%	+11.88%	+32.30%	Strong Buy
Broadcasting	13	-0.25%	-1.28%	-0.63%	-27.57%	3.03x	0.65x	-5.46%	-2.52%	+4.78%	+58.95%	Buy
Electronic Gaming & Multimedia	22	+0.84%	+2.28%	-2.58%	+3.12%	7.19x	4.07x	-101.72%	+3.73%	+5.55%	+28.09%	Strong Buy
Entertainment	45	-0.69%	+0.47%	-5.34%	+13.75%	35.95x	2.64x	-2.72%	+5.70%	+10.62%	+24.74%	Buy
Internet Content & Information	66	+2.17%	+1.98%	-3.24%	+34.57%	10.38x	6.51x	+26.50%	+18.86%	+26.25%	+24.66%	Buy
Telecom Services	53	+0.33%	-0.58%	-6.31%	-18.76%	117.09x	1.56x	+0.28%	+3.86%	+8.24%	+40.46%	Buy

Communication Service Stocks FAQ

What are the best communication service stocks to buy right now in Apr 2024?

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

1. Gravity Co (NASDAQ:GRVY)

Gravity Co (NASDAQ:GRVY) is the top communication service stock with a Zen Score of 68, which is 41 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 24.6% over the past year, overperforming other communication service stocks by 20 percentage points.

2. Interdigital (NASDAQ:IDCC)

Interdigital (NASDAQ:IDCC) is the second best 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 47.93% over the past year, overperforming other communication service stocks by 43 percentage points.

Interdigital has an average 1 year price target of $100.00, a downside of -0.7% from Interdigital's current stock price of $100.71.

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.

3. Cogent Communications Holdings (NASDAQ:CCOI)

Cogent Communications Holdings (NASDAQ:CCOI) is the third 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 -1.02% over the past year, underperforming other communication service stocks by -6 percentage points.

Cogent Communications Holdings has an average 1 year price target of $82.00, an upside of 24.64% from Cogent Communications Holdings's current stock price of $65.79.

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.

What are the communication service stocks with highest dividends?

Out of 51 communication service stocks that have issued dividends in the past year, the 3 communication service stocks with the highest dividend yields are:

1. Crexendo (NASDAQ:CXDO)

Crexendo (NASDAQ:CXDO) has an annual dividend yield of N/A, which is N/A percentage points lower than the communication service sector average of 6.48%. Crexendo's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Crexendo's dividend has not shown consistent growth over the last 10 years.

Crexendo's dividend payout ratio of -50% indicates that its dividend yield might not be sustainable for the long-term.

2. Trivago Nv (NASDAQ:TRVG)

Trivago Nv (NASDAQ:TRVG) has an annual dividend yield of 110.83%, which is 104 percentage points higher than the communication service sector average of 6.48%.

Trivago Nv's dividend payout ratio of -108.3% indicates that its high dividend yield might not be sustainable for the long-term.

3. Weibo (NASDAQ:WB)

Weibo (NASDAQ:WB) has an annual dividend yield of 18.98%, which is 12 percentage points higher than the communication service sector average of 6.48%.

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

Why are communication service stocks up?

Communication service stocks were up 0.64% in the last day, and up 1.04% over the last week. Snap was the among the top gainers in the communication services sector, gaining 27.63% yesterday.

Snap shares are trading higher after the company reported better-than-expected Q1 financial results and issued Q2 revenue guidance above estimates. Also, the company reported a year-over-year increase in Q1 daily active users.

What are the most undervalued communication service stocks?

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

1. Doubledown Interactive Co (NASDAQ:DDI)

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 73 points higher than the communication service sector average of 27. It passed 7 out of 7 valuation due diligence checks.

Doubledown Interactive Co's stock has gained 41.48% in the past year. It has overperformed other stocks in the communication service sector by 37 percentage points.

2. Nexstar Media Group (NASDAQ:NXST)

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 73 points higher than the communication service sector average of 27. It passed 7 out of 7 valuation due diligence checks.

Nexstar Media Group's stock has dropped -6.18% in the past year. It has underperformed other stocks in the communication service sector by -11 percentage points.

3. Opera (NASDAQ:OPRA)

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 73 points higher than the communication service sector average of 27. It passed 7 out of 7 valuation due diligence checks.

Opera's stock has gained 17.43% in the past year. It has overperformed other stocks in the communication service sector by 12 percentage points.

Are communication service stocks a good buy now?

42.66% of communication service stocks rated by analysts are a strong buy right now. On average, analysts expect communication service stocks to rise by 29.59% over the next year.

What is the average p/e ratio of the communication services sector?

The average P/E ratio of the communication services sector is 33.88x.

WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.