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:

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 24.58% over the past year, overperforming other communication service stocks by 21 percentage points.

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 44.65% over the past year, overperforming other communication service stocks by 41 percentage points.

Interdigital has an average 1 year price target of $100.00, an upside of 0.09% from Interdigital's current stock price of $99.91.

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 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 -5.23% over the past year, underperforming other communication service stocks by -9 percentage points.

Cogent Communications Holdings has an average 1 year price target of $82.00, an upside of 26.29% from Cogent Communications Holdings's current stock price of $64.93.

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.

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:

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 6.76%. 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.

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 6.76%.

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

Hello Group (NASDAQ:MOMO) has an annual dividend yield of 22.03%, which is 15 percentage points higher than the communication service sector average of 6.76%. Hello Group's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Hello Group's dividend has not shown consistent growth over the last 10 years.

Hello Group's dividend payout ratio of 50% indicates that its high dividend yield is sustainable for the long-term.

Communication service stocks were down -1.35% in the last day, and down -0.74% over the last week. Atn International was the among the top losers in the communication services sector, dropping -32.8% yesterday.

ATN International shares are trading lower after the company reported worse-than-expected Q1 revenue results and cut FY24 revenue guidance below estimates.

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 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 39.5% in the past year. It has overperformed other stocks in the communication service sector by 36 percentage points.

Gravity Co (NASDAQ:GRVY) is the second most undervalued communication service stock based on WallStreetZen's Valuation Score. Gravity 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.

Gravity Co's stock has gained 24.58% in the past year. It has overperformed other stocks in the communication service sector by 21 percentage points.

Nexstar Media Group (NASDAQ:NXST) is the third 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 -5.55% in the past year. It has underperformed other stocks in the communication service sector by -9 percentage points.