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  • 3 Best Communication Stocks to Buy this year

    3 Best Communication Stocks to Buy this year

    The communication industry is a large sector that goes from telecom to the internet and several other segments in the market.

    The communication industry consists of a wide range of companies that belong to telecom, media, video gaming, and Esports. Moreover, other sectors such as companies including movie production houses, television networks, and other content creators are also part of this large-scale industry.

    The technology revolution has changed the entire structure of the world—and communication ways have evolved with it. Still, around 47% of the world population is deprived of internet services. So, communication equipment plays a vital role to fill that gap. So, let’s have a look at the communication stocks with maximum potential going forward.

    AT&T (T)

    AT&T (T) is the second-largest U.S. mobile wireless network and the largest pay-television provider via its DirecTV subsidiary. The company is well-positioned in the world of communication and entertainment. AT&T’s WarnerMediais a leading and dominant entertainment production house.

    According to Reuters, the company is in talks with private equity firm TPG to divest a minority stake in DirecTV. The deal is estimated to be valued at around $15 million. The possible sale of a minority stake in DirecTV to TPG can be a strategy of A&AT to reduce its net debt, which was approximately $149 billion at the end of Q3 2020.

    Moreover, Forbes believes the gradual opening of the economy would take the stock price to soar up to 10% from its current levels. However, it’s difficult that the stock would go for the pre-COVID high any time soon.

    Cambium Networks (CMBM)

    Cambium Networks (CMBM) is a US-based fixed wireless networking system designed for wireless Internet service providers to provide Internet access. The basic services Cambium provides include Wi-Fi, wireless broadband systems and networking services, IoT systems, and switching solutions.

    In the third quarter of 2020, Cambium recorded revenues of $73 million, a 17% rise from the prior quarter and 11% YoY. While the company reported a record net income of $5.6 million.

    The company is performing decently with an increase in the demand for its services. The revenue continues to grow sequentially. The CEO of Cambium, Atul Bhatnagar highlighted that the record revenues and profitability during the past quarter were driven by high demand for wireless broadband connectivity.

    Cambium Networks (CMBM) has scheduled to release its Q4 and full-year 2020 results on Feb. 18, 2021. With strong demand across different portfolios of the company, the Q4 results are expected to report continued growth from Q3.

    Calix (CALX)

    The global cloud and software platform provider, Calix (CALX) is making way into the future of technology—the 5G world. CLAX stock has performed quite well with growth in the quarterly results.

    The third quarter 2020 results were better-than-expected which helped the stock momentum to push further. The revenue during Q3 soared over 31.4% to $150.5 million compared to the same period of 2019.

    The company has scheduled to announce the Q4 results on Jan. 27, 2021. Calix expects the revenue between $157 million to 161 million, higher than the consensus of $134.6 million. In the prior quarter, the company pulled off a 100% positive earnings surprise. It is anticipated to deliver such outcomes in Q4 as well.

    Recently, Calix announced that it was selected by TransWorld Network to provide end-to-end solutions and services. TransWorld will utilize Calix’s services to speed up its fiber-network buildout in the U.S. This deal will further accelerate the growth of the company in the long-term. 

  • Telecom Stocks to Look Out for in 2021

    Telecom Stocks to Look Out for in 2021

    Telecom companies help in providing the required technology which connects the world. In the telecom sector, companies provide internet, television services, phone services, and the infrastructure which is needed to support the. The telecom sector is often seen as an attractive avenue for conservative investors who are seeking dividend-yielding stocks and companies with capital appreciation potential.

    Verizon Communications Inc. (NYSE: VZ)

    Verizon Communications Inc. (VZ)‎, is an American multinational telecommunications conglomerate that is also a corporate component of the Dow Jones Industrial Average and is one of the largest communication technology companies in the world. VZ is also the largest wireless carrier in the United States and produces a high gross margin in comparison to its competitors. While Verizon’s wireline business is as good nor as cheaper as the others, it is still taking steps to improve its position and divesting its assets over time.

    On the records, Verizon’s debt situation is also well in check and relatively small in comparison to its peers such as AT&T. This stability in debt levels makes it attractive to investors who are assured of its relative safety as Verizon’s cash flow continues to keep exceeding its dividend payment. Which makes it highly unlikely that there will be any cash flow drop in the near future with the consistent state of its revenue.

    AT&T Inc. (NYSE: T)

    AT&T ‎(T) ‎is a diversified telecommunications company that possesses a history of having increased its dividends over the years. It is one of the leading and key telecommunications and digital companies in the United States and while it has faced a difficult time in the pandemic, it has also played a significant role in helping the world stay connected. In fact, ever since the pandemic started, the daily average of AT&T’s Global Network went up by around 20 percent and its net adds for the third quarter were 5.5 million.

    This year, the company will also be launching its 5G which will result in increased wireless sales and AT&T has also been growing its presence with HBO Max. AT&T has a dividend yield of 6.76 percent which makes it a stable stock to invest, particularly for investors who are interested in dividend income. Its market cap is also larger than $200 billion which is used for the innovative research and development of Bell Labs.

    T-Mobile Us Inc (NASDAQ: TMUS)

    T-Mobile ‎(TMUS) ‎is owned by Deutsche Telekom and is a leading company in the subscriber and revenue growth industry. Even Berkshire Hathaway, owned by Warren Buffet, is buying stocks of T-Mobile. One of the benefits of T-Mobile is that low-paying subscribers can even enjoy its perks such as through its TVision which launched in November last year with the price of only $10 a month. TMUS is also the new owner of Sprint which could help it in improving its rollout for its 5G wireless services as it now owns more mid-band radio spectrum than its competitors.

    Towards the end of December last year, according to the IBD Stock Checkup, T-Mobile had an IBD Relative Strength Rating of 73 out of 99 which means that T-Mobile outperformed 73 percent of the other stocks. The stock has also moved above 5 percent in the buy zone, with gains, and its stock also gained 68 percent in the last year even with the pandemic.