In today’s digitally-driven era, communication has become an indispensable aspect of our daily lives. From high-speed broadband connections to instantaneous text messaging and mail, our reliance on these communication channels is ever-growing. With such a pivotal role, the undervalued communication stocks stand out as potential growth opportunities.
Moreover, the communication sector is currently thriving, fueled by innovative technologies. The global unified communications market integrates various communication methods. It was valued at $107 billion in 2022 and is expected to reach $276 billion by 2028.
Similarly, the Customer Communication Management (CCM) market is expanding. Its value is set to reach $4.13 billion by 2030, an increase of 17% CAGR. And, this growth is driven by the adoption of CCM solutions in sectors like healthcare, IT & telecom, BFSI, and retail.
These promising trends indicate a prime opportunity to invest in these three undervalued communication stocks that show potential for substantial growth.
Verizon (VZ)
First, Verizon (NYSE:VZ), a consistent player in the value-stock arena of the communications services sector, has started 2023 on a high note. With a compelling forward dividend yield of 6.95%, the company has marked its territory. And it’s achieving its highest broadband net additions in over a decade.
On the technological front, Verizon is advancing in 5G Edge computing. Specifically, it introduced low-latency, connected devices like golf carts to enhance advertising and revolutionize audience experiences. Additionally, Verizon’s $1 billion commitment to the Verizon Innovative Learning initiative in Dallas over the past decade highlights its focus on promoting digital equity and inclusion in education.
Furthermore, with a year-to-date (YTD) free cash flow of $14.6 billion outpacing the full-year cash flow of 2022 and a 2.9% year-over-year (YOY) increase in wireless service revenue, Verizon stands strong. Also, the adjusted EBITDA of $12.2 billion surpasses previous quarters. So, this highlights the company’s effective strategic initiatives and resilience in the dynamic market.
Roku (ROKU)
Next, Roku (NASDAQ:ROKU), is one of the most popular U.S. streaming platforms, as exemplified by a 150.7% YTD stock price surge. In fact, this impressive growth trajectory aligns with the booming popularity of streaming services domestically. And, Roku has a growing market position in the fast-growing digital advertising arena.
Financially, Roku shows robust growth with a 20% increase in revenue YOY and added 2.3 million active accounts between 2022 and 2023’s third quarter. Most notably, Roku achieved a positive EBITDA of $43.4 million. This represents a remarkable turnaround from a loss of $34.4 million from the prior-year. It’s a showcase to its financial resilience and strategic prowess in a dynamic market. Moreover, as it continues to post strong top and bottom-line performances, delivering more content to its customers, expect its stock price to continue ticking in the green.
Alphabet (GOOG,GOOGL)
Finally, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is soaring in the communication world with its diverse services like SEO, online advertising, and cloud computing.
Further, the company is on a remarkable growth path, with projections estimating its value to reach $186.14 billion by 2030. A 48.29% YTD increase highlights this impressive trajectory.
Moreover, Alphabet’s Q3 earnings are remarkable, with a reported revenue increase of 11% YOY. Consequently, its net income is up by 41.55% YOY. Also, the diluted earnings per share climbed to $1.55, a notable 46.23% jump, showcasing the company’s solid financial health.
Additionally, Alphabet has been making massive investments in AI, aiming to enhance performance for advertisers and improve user experiences. So, this strategic move is drawing positive attention, with analysts from TipRanks assigning a strong buy with a 16.03% upside potential. Thus, it indicates Alphabet’s significant influence in shaping the future of the digital and AI landscapes.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
