Best Communication Services Stocks

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Contributor, Benzinga
February 25, 2024

Paramount Global (NASDAQ:PARA)

Paramount Global is the rebranded recombination of CBS and Viacom that has created a media conglomerate with global scale. CBS contributed Showtime in addition to its television assets–the CBS television network, 28 local TV stations, and 50% of CW, a joint venture between CBS and WarnerMedia. Viacom brought several leading cable network properties, including Nickelodeon, MTV, BET, Comedy Central, VH1, CMT, and Paramount. Paramount Pictures produces original motion pictures and owns a library of 2,500 films, including the Mission: Impossible and Transformers series. Paramount operates a number of streaming services, most notably Paramount+ and Pluto TV.

$11.21
-0.50[-4.27%]
Last update: 7:50PM (Delayed 15-Minutes)
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Open11.350Close11.210
Vol / Avg.23.107M / 16.801MMkt Cap7.302B
Day Range10.990 - 11.51152 Wk Range10.510 - 24.000

Bilibili (NASDAQ:BILI)

Bilibili Inc is a full-spectrum online entertainment company. It operates as a video sharing Website that covers a range of genres and media formats, including videos, live broadcasting, and mobile games. Its theme features include animation, comic, and game, where users can submit, view, and add commentary subtitles on videos. This past quarter, Twilio posted a 77.03% growth in revenue and a whopping 434.6% earnings growth, displaying a much higher growth rate than its competitors.

$9.98
-0.30[-2.92%]
Last update: 7:59PM (Delayed 15-Minutes)
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Open10.280Close10.020
Vol / Avg.5.449M / 6.462MMkt Cap4.113B
Day Range9.870 - 10.37052 Wk Range8.800 - 25.580

Paramount Global (NASDAQ:PARA)

Paramount Global is the rebranded recombination of CBS and Viacom that has created a media conglomerate with global scale. CBS contributed Showtime in addition to its television assets–the CBS television network, 28 local TV stations, and 50% of CW, a joint venture between CBS and WarnerMedia. Viacom brought several leading cable network properties, including Nickelodeon, MTV, BET, Comedy Central, VH1, CMT, and Paramount. Paramount Pictures produces original motion pictures and owns a library of 2,500 films, including the Mission: Impossible and Transformers series. Paramount operates a number of streaming services, most notably Paramount+ and Pluto TV.

$11.21
-0.50[-4.27%]
Last update: 7:50PM (Delayed 15-Minutes)
Get Real Time Here
Open11.350Close11.210
Vol / Avg.23.107M / 16.801MMkt Cap7.302B
Day Range10.990 - 11.51152 Wk Range10.510 - 24.000

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Facebook is the world’s largest online social network, with 2.5 billion monthly active users. Users engage with each other in different ways, exchanging messages and sharing news events, photos, and videos. On the video side, the firm is in the process of building a library of premium content and monetizing it via ads or subscription revenue. Facebook refers to this as Facebook Watch. The firm’s ecosystem consists mainly of the Facebook app, Instagram, Messenger, WhatsApp, and many features surrounding these products.  Currently one of the most trending tickers, Facebook occupies an abundance of Benzinga’s search increment perhaps because of the news surrounding its name change, whistleblower, and allegations in the past couple of weeks.

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Comcast (NASDAQ:CMCSA)

Comcast is made up of three parts. The core cable business owns networks capable of providing television, internet access, and phone services to roughly 61 million U.S. homes and businesses, or nearly half of the country. About 57% of the homes in this territory subscribe to at least one Comcast service. Comcast acquired NBCUniversal from General Electric in 2011. NBCU owns several cable networks, including CNBC, MSNBC, and USA, the NBC broadcast network, several local NBC affiliates, Universal Studios, and several theme parks. Sky, acquired in 2018, is the dominant television provider in the U.K. and has invested heavily in exclusive and proprietary content to build this position. The firm is also the largest pay-television provider in Italy and has a presence in Germany and Austria.

$42.132
0.222[0.53%]
Last update: 6:35PM (Delayed 15-Minutes)
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Open41.860Close41.900
Vol / Avg.14.672M / 19.484MMkt Cap167.342B
Day Range41.670 - 42.32052 Wk Range34.630 - 47.455

This sector includes companies that provide communication services using fixed-line networks or those that provide wireless access and services as well as companies that provide Internet services such as access, navigation, and Internet-related software and services. This sector includes some of the world’s most well-known and largest companies, such as Zoom, NetGear, Google, and Comcast. 

Stocks in the communication services sector, which are holistically represented by the Vanguard Communication Services ETF (VOX), have broadly outperformed the market as VOX has provided investors with massive returns, ensuring continued growth. 

Here are the top communication services stocks with the highest growth, greatest value, strongest momentum, and most searches on Google to help you build your investment portfolio.

Quick Look at the Best Communication Services Stocks:

Overview: Communication Services Stocks

The Global Industry Classification Standard (GICS) telecommunication services sector was renamed communication services in 2018. This change shows that the way we communicate, share information and entertain ourselves has greatly and fundamentally changed due to the convergence of telecom, media and technology.

The new communication services sector also incorporated communication providers from the information technology sector. These include companies like Facebook (NASDAQ: FB) and Alphabet (NASDAQ: GOOGL). Media companies like Comcast Corp (NYSE: CMCSA) and Disney (NYSE: DIS) were also moved from the consumer discretionary sector.

The communication services sector continues to rise, making up more and more of the MCSI.  

Best Online Brokers for Communication Services Stocks

You can buy shares of companies in the communication services sector with online brokers. Do a little digging to see what each broker has to offer — educational resources, exchanges offered, fees and commissions required and even just how to open an account. Here are some of the top online brokers you can compare.

Features to Look for in Communication Services Stock

  • Shareholders’ equity or book value: Book value is the difference between the company’s assets and its liabilities (including the value of any preferred stock that the company has issued). Book value per share is the number most investors are interested in.

For stocks with a great long-term potential, consider a book value per share that isn’t out of line with that of similar companies in the same sector.

  • Return on equity. This is a company’s net profit after tax deduction divided by the book value. It shows how much a company is drawing on the stockholders’ stake in the stock. If the return on equity shows consistent growth, the stock’s price will exhibit long-term strength. A steady return in equity of more than 15% may indicate a company that knows how to manage itself properly.
  • A leader in its sector: A company gains several advantages by being No. 1 or 2 in its primary sector. An industry leader can influence pricing instead of merely reacting to what others do. It also has a bigger market presence – new products have a higher chance of being accepted.

Your New Safe Haven

A majority of companies in the communication sector depend heavily on recurring revenue, while others like Google and Facebook earn from advertising. The 5G rollout expected to increase network speeds means communication service companies will continue to create demand and growth potential.

If you've found the best stocks and aren't sure what to do next, be sure to read Benzinga's Best Online Brokerages.

Stock Picks Methodology

To create a specific set of companies and their respective stocks that fall under a certain criteria, we utilized a screener to examine the top stocks under each criteria. For value companies, we analyzed the companies with the lowest forward P/E, current P/E, and P/E/G multiples; for growth companies, we analyzed high earnings and revenue growth - weighing them equally; for momentum, we looked at price growth in the past 52 weeks; for trending tech, we examined the stocks with the highest percent of search increment on Benzinga.

Q

What are communications services sector stocks?

A

Communications services sector stocks are shares of companies that provide either fixed-line or wireless communication services.

 

Q

What industries make up the communications services sector?

A

The industries that make up the communications services sector are entertainment, interactive media (and services), and telecommunication services to include both fixed and wireless services.

 

Q

Is Netflix a communications services stock?

A

Yes, Netflix is a communications  servicses stock.