Communication stocks may be one of the most important industries in the stock market over the past decade. It comprises some of the fastest-growing names in the stock market today. In the past, we relied on telecommunication services from providers such as T-Mobile US Inc (NASDAQ: TMUS) and Verizon Communications Inc. (NYSE: VZ) to maintain communications. Don’t get me wrong, they still play a pivotal role today, but the presence of social media and streaming platforms has given us more choices these days.

The adoption of streaming services went off the roof during the coronavirus pandemic. Curious consumers eventually started subscribing to streaming services such as Netflix Inc (NASDAQ: NFLX) and Roku Inc (NASDAQ: ROKU) due to a lack of entertainment choices indoors. The potential of the industry is massive given that the streaming industry is still relatively young. We could see Netflix trying to expand its boundaries by tapping into the mobile game industry. It appears that members in Poland will be able to try “Stranger Things” games on Android. So, are you intrigued by the potential of the communication industry? If so, here is a list of some of the top communication stocks in the stock market today.

Best Communication Stocks To Watch Today

Nexstar Media Group Inc

To kick start the list, we will be looking at the television and digital media company, Nexstar. In detail, the company focuses on the development, and operation of television stations and interactive community websites in the U.S. While NXST stock may have been trading sideways for most parts of this year, it has still risen by over 50% within the past year.

Earlier this month, the company announced its second-quarter earnings. It posted a record second-quarter net revenue of $1.13 billion, up by 23.7% year-over-year. Also, its net income was $199.8 million, more than double that of the prior year’s quarter. All these were well ahead of expectations and a testament to its team’s success in generating a faster and stronger recovery in its core businesses. 

Despite its recent strong financial results, the company is still not resting on its laurels. The company and SportsGrid Inc. recently announced a multi-year agreement to launch “SportsGrid Network”. This digital network will focus on sports wagering and fantasy sports. The network aims to provide real-time sports news, data, analytics, and statistics to engage sports audiences. Sports wagering and fantasy leagues have been extremely popular among sports enthusiasts and both companies are capitalizing on this. So, would you consider adding NXST stock to your watchlist?

communication stocks (NXST stock)
Source: TD Ameritrade TOS

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Snap Inc

Next up, we have the trendy camera company, Snap. The company believes that by reinventing the camera, it would have the best opportunity to improve the way people live and communicate. Through its social media app Snapchat, it empowers people to express themselves, live in the moment, and ultimately have fun together. With such goals, it is no surprise that the company’s products and services are popular among the younger generations. 

By looking at the company’s actions over the past year, we could see that it is focusing on augmented reality (AR) to engage its customers and advertisers. Last week, the company hired Konstantinos Papamiltiadis from Facebook to become Vice President of Platform Partnerships. He will be tasked to help recruit more AR creators and encourage companies to adopt Snap’s technology into their services.

Besides that, the company also saw the highest growth in both revenue and daily active users during its recent quarter over the past four years. For its second quarter, it posted revenue of $982 million, up by 116% year-over-year. Meanwhile, adjusted EBITDA improved 223% to $117 million compared to the prior year. Not to mention, its daily active users were 293 million, an increase of 55 million or 23% year-over-year. As a whole, Snap appears to be trending in the right direction. So, do you believe SNAP stock would be a viable investment?

best communication stocks (SNAP stock)
Source: TD Ameritrade TOS

[Read more] Best Stocks To Invest In 2021? 3 Cyclical Stocks To Watch

Zoom Video Communications Inc

Prior to the global pandemic caused by the coronavirus, many people may not be aware of Zoom’s existence. Fast forward to today, almost everyone would know what the company offers and probably have experienced the company’s software for communication purposes. After all, Zoom’s video communication platform was utilized by companies and consumers alike to maintain their daily workflow and routine. Some of its core products include Zoom Meetings, Zoom Video Webinars, Zoom Chat, and many more.

Earlier this week, Morgan Stanley analyst Meta Marshall gave a boost to ZM stock. The analyst raised her rating on the stock to Overweight from Equal Weight and lifted her target for the price to $400, from $360. She began covering the stock in May 2019 and believes that investors have gotten “too negative” in recent times. Also, she predicts that the Zoomtopia customer event that is scheduled in September may serve as a catalyst for the stock. 

It is also noteworthy that Zoom announced the general availability of its latest innovations, Zoom Apps, and Zoom Events back in July. With Zoom Apps, it will seamlessly embed third-party apps within Zoom Meetings and desktop client experience. Meanwhile, Zoom Events is an all-in-one platform to cater to a wide range of interactive and immersive virtual events. Given that the company will be announcing its second-quarter earnings next Monday, would you invest in ZM stock?

top communication stocks to watch (ZM stock)
Source: TD Ameritrade TOS

[Read more] Top Stocks To Buy Now? 5 Dividend Stocks To Watch

DISH Network Corp

Lastly, we will be looking at DISH Network. Essentially, the company operates two business segments, Pay-TV and Wireless. The Wireless business segment consists of the Retail Wireless and 5G Network Deployment. On the other hand, the Pay-TV segment offers TV services under the DISH brand and the SLING brand. DISH stock has risen over 20% over the past year.

During its second quarter, the company reported revenue of $4.49 billion, representing an increase of 40.8% year-over-year. Also, its net income totaled $671 million compared to $452 million in the prior year’s quarter. As of now, the company closed the quarter with 10.99 million Pay-TV subscribers. Out of which, 8.55 million are DISH TV subscribers and 2.44 million are SLING TV subscribers. Well, the company is showing improvement across the board compared to the same period last year. 

Furthermore, DISH also announced that HBO Max, HBO, and Cinemax premium networks are now available to DISH TV customers nationwide. This comes after the company signed a new agreement with AT&T Inc’s (NYSE: T) WarnerMedia. So, its customers will now have a broader choice of content to choose from. All things considered, would you say that DISH stock is a top communication stock to watch?

DISH stock chart
Source: TD Ameritrade TOS

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