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3 Best Communication Stocks to Buy this year

by Ali Hassan
January 26, 2021
in Featured
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The communication industry is a large sector that goes from telecom to the internet and several other segments in the market.

The communication industry consists of a wide range of companies that belong to telecom, media, video gaming, and Esports. Moreover, other sectors such as companies including movie production houses, television networks, and other content creators are also part of this large-scale industry.

The technology revolution has changed the entire structure of the world—and communication ways have evolved with it. Still, around 47% of the world population is deprived of internet services. So, communication equipment plays a vital role to fill that gap. So, let’s have a look at the communication stocks with maximum potential going forward.

AT&T (T)

AT&T (T) is the second-largest U.S. mobile wireless network and the largest pay-television provider via its DirecTV subsidiary. The company is well-positioned in the world of communication and entertainment. AT&T’s WarnerMediais a leading and dominant entertainment production house.

According to Reuters, the company is in talks with private equity firm TPG to divest a minority stake in DirecTV. The deal is estimated to be valued at around $15 million. The possible sale of a minority stake in DirecTV to TPG can be a strategy of A&AT to reduce its net debt, which was approximately $149 billion at the end of Q3 2020.

Moreover, Forbes believes the gradual opening of the economy would take the stock price to soar up to 10% from its current levels. However, it’s difficult that the stock would go for the pre-COVID high any time soon.

Cambium Networks (CMBM)

Cambium Networks (CMBM) is a US-based fixed wireless networking system designed for wireless Internet service providers to provide Internet access. The basic services Cambium provides include Wi-Fi, wireless broadband systems and networking services, IoT systems, and switching solutions.

In the third quarter of 2020, Cambium recorded revenues of $73 million, a 17% rise from the prior quarter and 11% YoY. While the company reported a record net income of $5.6 million.

The company is performing decently with an increase in the demand for its services. The revenue continues to grow sequentially. The CEO of Cambium, Atul Bhatnagar highlighted that the record revenues and profitability during the past quarter were driven by high demand for wireless broadband connectivity.

Cambium Networks (CMBM) has scheduled to release its Q4 and full-year 2020 results on Feb. 18, 2021. With strong demand across different portfolios of the company, the Q4 results are expected to report continued growth from Q3.

Calix (CALX)

The global cloud and software platform provider, Calix (CALX) is making way into the future of technology—the 5G world. CLAX stock has performed quite well with growth in the quarterly results.

The third quarter 2020 results were better-than-expected which helped the stock momentum to push further. The revenue during Q3 soared over 31.4% to $150.5 million compared to the same period of 2019.

The company has scheduled to announce the Q4 results on Jan. 27, 2021. Calix expects the revenue between $157 million to 161 million, higher than the consensus of $134.6 million. In the prior quarter, the company pulled off a 100% positive earnings surprise. It is anticipated to deliver such outcomes in Q4 as well.

Recently, Calix announced that it was selected by TransWorld Network to provide end-to-end solutions and services. TransWorld will utilize Calix’s services to speed up its fiber-network buildout in the U.S. This deal will further accelerate the growth of the company in the long-term. 

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Tags: ‎ AT&T News‎ AT&T StockAT&TBest Communication StocksCalixCalix NewsCalix StockCALXCALX NewsCALX StockCambium NetworksCambium Networks NewsCambium Networks StockCMBMCMBM NewsCMBM StockTT NewsT stock

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