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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 theVanguard 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.
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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.
Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.
Webull is widely considered one of the best Robinhood alternatives.
- Active traders
- Intermediate traders
- Advanced traders
- No account maintenance fees or software platform fees
- No charges to open and maintain an account
- Intuitive trading platform with technical and fundamental analysis tools
- Does not support trading in mutual funds, bonds or OTC stocks
Moomoo is a commission-free mobile trading app available on Apple, Google and Windows devices. A subsidiary of Futu Holdings Ltd., it’s backed by venture capital affiliates of Matrix, Sequoia, and Tencent (NASDAQ: FUTU). Securities offered by Futu Inc., regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Moomoo is another great alternative for Robinhood. This is an outstanding trading platform if you want to dive deep into smart trading. It offers impressive trading tools and opportunities for both new and advanced traders, including advanced charting, pre and post-market trading, international trading, research and analysis tools, and most popular of all, free Level 2 quotes.
Get started right away by downloading Moomoo to your phone, tablet or another mobile device.
- Cost-conscious traders
- Active and Advanced traders
- Over 8,000 different stocks that can be sold short
- Access trading and quotes in pre-market (4 a.m. to 9:30 a.m. ET) and post-market hours (4 p.m. to 8 p.m. ET)
- No minimum deposit to open an account.
- No chat support
E*TRADE is an online discount trading house that offers brokerage and banking services to individuals and businesses. One of the first brokers to embrace online trading, E*TRADE not only survived both the dot-com bubble and Recession — it thrived. You can choose from two different platforms (one basic, one advanced). E*TRADE is a suitable broker for traders of most skill levels, whether you want to buy mutual funds and hold them for decades or dabble in options swing trading. E*TRADE offers a library of research and education materials to help you out.
- Active traders
- Derivatives traders
- Retirement savers
- Sophisticated trading platforms
- Wide range of tradable assets
- Exceptional customer service
- Limited currency trading
- Higher margin rates than competitors
- No paper trading on its standard platform
This latest groundbreaking technology is IBKR GlobalAnalyst, a new trading tool that helps investors compare the rate of PEG or price-earnings growth valuations and provide more immediate and comprehensive financial metrics of stocks, globally.
Recognizing that stock selection can be challenging for investors to compare the valuations of domestic and international stocks, Interactive Brokers created GlobalAnalyst to offer investors a simple, yet powerful tool to easily evaluate investment opportunities around the world.
Using GlobalAnalyst, investors can search for stocks by region, country, industry, market capitalization and currency to uncover undervalued stocks worldwide. The resulting table displays the current market and financial metrics, including the PEG Ratio. The PEG Ratio is the PE ratio divided by the three-year compound earnings growth rate, and smaller PEG Ratios typically indicate undervalued companies.
- Price earnings growth valuations
- Easily evaluate investment opportunities
CenterPoint Securities is ideal for active traders who demand access to advanced tools and services. While investors and casual traders are likely to be content with the basic offerings of traditional online brokerages, active traders will benefit from CenterPoint’s suite of advanced trading tools. If you value execution quality, access to short inventory, advanced trading platforms, and accessible customer service, CenterPoint is an excellent choice.
- Intermediate to Advanced traders
- High-volume traders
- Momentum traders
- Short sellers
- Unrivaled access to short inventory
- Flexible order routing for improved executions
- Discounts for active traders
- Advanced platform with fast executions
- Reliable customer service
- Not designed for beginner or low-volume traders
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.