Telecom stocks are usually an interesting and profitable place for investors. When looking for new names to round out your portfolio, make sure you don’t forget top telecom stocks to buy.

Telecom stocks are good investments because they have a long runway. Communication will always be an important part of any society, and telecom helps people connect to peers and businesses.

You need telecom in your life, so telecom stocks are less likely to be wounded by an economic downturn.

This sector is also appealing because of the significant growth potential for telecom stocks. We’ve already seen several innovations this decade, including the growth of the Internet of Things and 5G technology.

I also like telecom stocks because many operate on a subscription basis. Investors highly favor those companies because a subscription model means a dedicated and consistent revenue stream.

I used the Portfolio Grader to pick out the best telecom stocks you can buy this month. Here are seven to consider.

Cisco Systems (CSCO)

Cisco Systems (NASDAQ:CSCO) is a telecom play for the long haul. While the stock price hasn’t jumped as much as you may like this year (it’s up 7% since Jan. 1), I’m more inclined to look at the performance since early May, when Cisco is up 11%.

But there are better days ahead. Cisco has been dealing with a backlog of orders because of supply chain issues with computing gear. But the company says the backlog is clearing out and projects moderate revenue growth in the fiscal 2024 year (which starts this September).

Cisco has a reliable business model – it sells networking hardware you need to get online. It’s increased its dividend for more than a decade and currently offers a yield of 3.1%

CSCO stock has a “B” rating in the Portfolio Grader.

Veon (VEON)

Amsterdam-based Veon (NASDAQ:VEON) is a telecom stock for investors who want to look overseas. The company provides national and international roaming services for mobile devices, wireless internet and fixed-line service.

The company operates in Pakistan, Ukraine, Bangladesh, Kazakhstan, Uzbekistan and Kyrgyzstan. But it recently dropped the Russian market, selling those assets to PJSC VimpelCom, which will be operated by senior members of Veon’s management team.

Now leaner (and with a smaller board of directors), Veon can focus on its remaining assets without the overhang of doing business in Russia, which is under heavy sanctions. Veon announced a $600 million investment in Kyivstar, a mobile network operating in Ukraine.

Earnings in the first quarter were $844 million, down 8% from a year ago. And I’m not expecting great YOY comparisons when the next earnings report comes out in early August. But I’m enthusiastic about the prospects of a smaller, leaner Veon, which is up 55% in 2023.

VEON has a “B” rating in the Portfolio Grader.

Sonim Technologies (SONM)

Sonim Technologies (NASDAQ:SONM) is a California-based maker and distributor of smartphones, walkie-talkies and headsets. It designed its devices with rugged use in mind and are manufactured for workers in isolated or emergency situations.

The phones can be purchased from major U.S., Canada and Europe wireless carriers.

After struggling to remain above the $1 mark to maintain compliance with Nasdaq, Sonim seems to have turned the corner. The stock price is up 151% in 2023. In late June, Sonim stock was added to the Russell Microcap index, which also should help its trading volume and overall price.

Earnings for the first quarter included $25.8 million in revenue, a 95% increase from a year ago.

SONM stock gets a “B” rating in the Portfolio Grader.

Hewlett Packard Enterprise (HPE)

Hewlett Packard Enterprise (NYSE:HPE) was formed in 2015 from the split of the Hewlett Packard Company.

Hewlett Packard Enterprise handles services, networking, storage and support, emphasizing cloud services and artificial intelligence. It’s separate from HP (NYSE:HP), which makes printers, computers and mobile devices.

AI, of course, is a hot topic for investors. HPE has a range of products to make generative AI work better and smarter.

That’s why the company’s stock is up 8% this year, even though HPE missed its revenue estimates in the fiscal second quarter. The company brought in $6.97 billion, up nearly 4% from a year ago. But analysts were expecting $7.3 billion.

I am confident that HPE’s AI platform and continued interest in the technology will help propel this telecom stock. HPE stock has a “B” rating in the Portfolio Grader.

InterDigital (IDCC)

InterDigital (NASDAQ:IDCC) may not be a well-known name by many investors – the company has a market cap of less than $3 billion. But its work is essential for the telecom industry, and that’s why it’s one of the best telecom stocks to buy.

InterDigital conducts research that helps wireless communication networks work better, including many technologies used for 4G, 5G and wifi-related networks and products. It’s already working on the next step in the evolution to 6G technology.

It’s also working in video research to help video communications work better, including developments in 2-D, 3-D and immersive video.

Earnings in the first quarter included revenue of $202.37 million, up 99.7% from a year ago. The company more than doubled analysts’ expectations and blew EPS estimates out of the water. The company reported EPS of $4.21, while analysts expected only 78 cents per share.

IDCC stock is up 94% in 2023 and has an “A” rating in the Portfolio Grader.

Iteris (ITI)

Iteris (NASDAQ:ITI) is a telecom stock of a different flavor.

Iteris is laser-focused on the transportation industry by using cloud services and smart technology to make things in the world operate a little smoother.

It works with public agencies across the country, installing more than 200,000 smart sensors at intersections to help traffic signals optimize vehicle flow.

It allows commercial customers to monitor and manage their fleets to help ensure that the vehicles are operated responsibly and efficiently.

But its most interesting effort is ClearMobility, which is intended to be an interconnected platform that uses cloud computing, AI, sensors and managed services to detect vehicles, pedestrians and cyclists and make managed vehicles operate safely.

Iteris reported earnings in its fiscal Q4 2023 of $42.4 million, an increase of $24% from a year ago. The company is also approaching profitability, with EPS of -1 cents versus a loss of 7 cents per share a year ago.

Also, notably, Iteris is joining the Russell 2000 index, which will help it maintain and grow its stock price.

ITI stock is up 28% this year and has an “A” rating in the Portfolio Grader.

Ooma (OOMA)

Ooma (NYSE:OOMA) is a different kind of communications provider. It provides VoIP (voice over internet protocol) phone service that allows users to make phone calls through their high-speed internet connection.

It offers platforms for small- and medium-sized businesses (Ooma Office) and home (Ooma Telo) that can also customize security and monitoring services, including window and motion sensors.

The company has an impressive track record of beating analysts’ estimates for earnings and revenue. Results for the company’s fiscal Q1 2024 included revenue of $56.85 million, up nearly 13% from a year ago. Earnings of 16 cents per share topped estimates by 2 cents.

OOMA stock is up 8% in 2023, but there should be plenty more to come. It gets a “B” rating in the Portfolio Grader.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.