Communications companies are a great addition to any investor’s portfolio due to the sector’s continued strength, especially recently. For example, industry leaders such as Meta Platforms (NASDAQ:META) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) have seen their share prices rise by 181% and 57% within this last year, respectively. These are just some of the communication stocks that are on the rise.
Communication services is an industry that will most likely continue to see growth due to the ever-growing environment of new and unique methods of online and other forms of communication capabilities. The industry is one that all investors should consider some exposure to.
The companies below all represent strong contenders within the sector that offer investors looking for stand-out stocks a great place to start.
Comcast (CMCSA)
Comcast (NASDAQ:CMCSA) is a large communications services provider that supplies its customer base with residential and business connectivity support. The company also operates NBC’s Universal television channel and its streaming service, Peacock. It also operates several Universal theme parks in Florida, Japan and China.
Over the past year, its share price has risen by approximately 14%, primarily attributed to its recent earnings beat. On October 26, Comcast reported its third-quarter earnings results for 2023. Its total revenue saw slight growth, and free cash flow for Comcast increased by 19% compared to the year before. It experienced a net loss of $5 billion for Q3 2022. In the third quarter of 2023, its net income saw a significant swing into positive territory, with an overall gain of $4 billion. Its studio sector saw its revenue fall by over 23%, and its theme park sales rose by 17% within the same time period. Comcast also reported that its paid customer base for its streaming services Peacock rose by almost 80% compared to the year before.
Comcast has seen positive earnings numbers, the continued growth of its customer base, and substantial growth regarding its theme park segment. With a total addition of 4 million users for its streaming service in the third quarter, Peacock added a large chunk of profit towards Comcast. Investors will be watching Comcast closely when its fourth-quarter full-year earnings report is released, which is expected to be on January 25.
Yalla Group (YALA)
Yalla Group (NYSE:YALA) is a social networking platform provider that operates through group chat capabilities and its mobile gaming app, Yalla Ludo. It is a company that started trading on the stock market in the middle of 2020 and is located in the United Arab Emirates.
On November 20, it reported earnings results for the third quarter of 2023, in which it stated that total revenue saw a slight increase of 6% and net income saw a much more substantial jump of 44% compared to earnings results from the previous year. Its overall revenue and net income growth could be attributed to its active monthly user growth and its ability to reduce costs and expenses.
Over this last year, their stock price has risen by 30%, partly due to a 14% increase in their active monthly users compared to the year before. This is one of the best communication stocks you can grab today.
T-Mobile (TMUS)
T-Mobile (NASDAQ:TMUS) operates primarily as a carrier provider, providing its customer base with data and mobile communication services. The company also operates retail stores throughout the United States and offers financing for its mobile communication products.
Within the last year, their stock price has risen by 14%. On October 25, it released earnings for the third quarter of 2023. It stated that its total revenue decreased slightly, and its net income surged more than four-fold compared to the previous year. Its net customers for prepaid services saw a 26% decline year-over-year, and its postpaid customers saw a slight drop within the same time period.
T-Mobile has slightly raised its guidance for its fourth-quarter earnings, in which adjusted free cash flow and its postpaid customer base are projected to slightly increase from previously expected results.
T-Mobile is trading at an all-time high, and investors seem excited about where it can go due to its leading 5G network and robust performance metrics that may continue to expand. If you are looking for communication stocks, start here.
As of this writing, Noah Bolton held a LONG position in GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
