3 Wireless Stocks Going Airborne

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Shares of the big wireless carriers have been in a dead zone for three years. Subscription growth petered out, price competition set in, and investors lost interest. Some were hit harder than others, as Sprint Corp (NYSE:S) dropped back to levels last seen in 2012.

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Yet all of a sudden, stocks in this industry group are on the move again. Strong earnings have helped. Reports that regulators are shooting down a big merger in the cable space are also helping AT&T.

While the recent FCC decision on net neutrality was bad news — preventing throttling of certain content providers hogging bandwidth — regulators have pledged to find a way to provide the returns broadband providers need to upgrade their networks. Moreover, the industry is reportedly looking to sue the FCC, putting the ultimate decision in the hands of the courts.

But the big news is that some excitement is returning as Google Inc (NASDAQ:GOOGL, NASDAQ:GOOG) launches Project Fi (which aims to more closely link devices and connectivity using Wi-Fi and cellular networks) and Apple Inc (NASDAQ:AAPL) launches the Apple Watch, bringing wearables to the mainstream and popularizing another category of data-hungry devices.

Here are three wireless stocks worth a look as the industry group perks up for the first time in years.

Wireless Stocks: Sprint Corp (NYSE:S)

wireless-stocks-s-stockSprint Corp (NYSE:S) is my favorite on this list as it looks ready to pop out of a long downtrend and move above its 200-day moving average for the first time since last summer. Sprint is a launch partner in Google’s Project Fi, which, along with its cut-your-bill-in-half promotion, should help grow its subscriber base — something the company has struggled with but seems to be turning a corner on.

Back in February, Sprint reported better-than-expected earnings and revenues as well as a near doubling of new subscriber additions. Margins held up well despite a drop in average revenues per user as the company tries to entice defections from other carriers with lower prices.

The May $5 calls I recommended to Edge Pro subscribers on April 17 are up more than 20% already with a growing potential for much more.

Wireless Stocks: AT&T Inc. (NYSE:T)

wireless-stocks-t-stockAT&T Inc. (NYSE:T) is on the move after reporting earnings in line with expectations.

AT&T increased the estimated cost savings associated with its rollup of DirecTV, and wireless subscriber additions were larger than expected.

Final approval of the DirecTV (NASDAQ:DTV) deal is expected sometime in the second quarter.

Wireless Stocks: Verizon Communications Inc. (NYSE:VZ)

wireless-stocks-vz-stockVerizon Communications Inc. (NYSE:VZ) reported better-than-expected quarterly earnings on April 21, thanks to an increase in wireless service profit margins and growth in its FIOS video business.

Shares are moving up to test from highs hit in July and November. A breakout here would establish the first new uptrend for the stock since early 2013.

Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/04/wireless-stocks-t-s-vz/.

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