5 Telecom Stocks That Are Likely Buyout Targets

A recently-announced merger between T-Mobile US Inc. TMUS and Dish Network Corp. DISH has once again showcased the consolidation within the major U.S. cable and telecom industries. This comes after almost a year earlier when Sprint Corp. S dropped its bid for T-Mobile after regulatory resistance denied the acquisition of the 4th largest U.S. carrier. In light of this, there might appear to be further consolidation in the market, as the giants of the industry try to win majority market share. The companies on our list are currently trading at a discount, with most of the trading ratios below averages.

Telephone and Data Systems Inc. TDS - $29.91

Wireless Telecommunications Services Telephone and Data Systems, Inc. (TDS) is a telecommunications service company with wireless operations. The Company provides wireless products and services; cable and wireline broadband, TV and voice services, and hosted and managed services. TDS conducts its wireless operations through its subsidiary, United States Cellular Corporation (U.S.Cellular). TDS provides wireline services, cable services and hosted and managed services (HMS), through its subsidiary, TDS Telecommunications Corporation (TDS Telecom).

• Market Cap: $3,231,511,544
• P/B: 0.79x
• EV/Revenue: 1.02x
• EV/EBITDA: 7.05x

Sprint Corp. S - $4.75

Wireless Telecommunications Services Sprint Corporation offers a range of wireless and wireline communications services to consumers, businesses and government users. The Company develops, engineers and deploys technologies, including the first wireless fourth generation (4G) service from a national carrier in the United States; offering mobile data services, prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities, and a global Tier 1 Internet Service.

• Market Cap: $18,844,274,323
• P/B: 0.87x
• EV/Revenue: 1.40x
• EV/EBITDA: 6.84x

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