Best Communication Services Stocks

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:

• Paramount Global
• Bilibili Inc
• Facebook
• Comcast

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.