Are These The Best Communication Stocks To Buy Right Now?
Communication services stocks have been gaining traction among investors over the past week. As the stock market continues to trade sideways, it appears that some of the top communication stocks have been showing signs of recovery. For instance, Roblox (NYSE: RBLX) saw its stock price climbing more than 25% over the past week. This coincided with the release of its February 2022 key metrics last week. Notably, its daily active users improved to 55.1 million, up 28% year-over-year.
Besides that, Meta (NASDAQ: FB) is also ramping up its efforts to improve its advertising services. Last Thursday, the company said that it will build new tools that would allow brands to prevent their ads from appearing next to unsuitable content. This means that brands will be given more control over where their ads would appear on Facebook and Instagram. Overall, it is reasonable to believe that there will be more room to grow for the communication services sector. If you share the same sentiments, here are some of the top communication services stocks in the stock market today.
Communication Services Stocks To Watch This Week
- Sea Ltd (NYSE: SE)
- Omnicom Group Inc. (NYSE: OMC)
- T-Mobile US Inc (NASDAQ: TMUS)
- Zoom Video Communications Inc (NASDAQ: ZM)
Sea is a Singapore-based consumer Internet company. Essentially, it operates under three segments, digital entertainment, e-commerce, and digital payments and financial services. The company’s Garena platform offers mobile and personal computer (PC) online games for the global market. Meanwhile, its ever-expanding Shopee platform is one of the leading e-commerce platforms in South East Asia and Taiwan. In fact, it has been penetrating other markets such as South America and Europe lately.
Earlier this month, Sea reported its fourth-quarter and full-year 2021 earnings. Impressively, the company’s total GAAP revenue more than doubled its value to $3.2 billion. Meanwhile, its total gross profit soared to $1.3 billion, representing an increase of 145.6% year-over-year. Evidently, Sea was able to focus on sustainable growth while serving the fast-growing and evolving demands of the community.
Elsewhere, Garena recently announced a collaboration with South Korean band BTS. The collaboration will see the band enter the world of Garena’s Free Fire for a never-before-seen event later in March. There will also be a series of collaboration events and activities, both in the game and beyond. As the company continues to find new ways to engage with its users, would you add SE stock to your watchlist?
Following that, we will be looking at Omnicom. For the uninitiated, the company provides advertising, marketing, and corporate communications services. Its branded networks and agencies can be found in all markets around the world and provide a range of services. This includes customer relationship management (CRM), health care, and advertising. Despite trading sideways for most of the past year, OMC stock has still risen by more than 10% this year.
Omnicom started the month of March by announcing the acquisition of TA Digital. This is part of the company’s efforts to further expand its digital transformation, commerce and customer experience, and content management capabilities. Moving forward, TA Digital will join Omnicom Precision Marketing Group (OPMG) and its services will be closely aligned with OPMG agency Credera, a global consulting firm focused on strategy, innovation, and technology.
In addition, there was also a multi-year agreement between Omnicom Group’s data and analytics division with Affinity Solutions. The collaboration aims to integrate retailer purchase transactions into Omni. Also, it would transform Omni’s model for developing purchase insights from “propensity to buy” to actual purchases made at specific retailers. Advertisers would also be able to evaluate and optimize their marketing investments based on buyers’ data. All things considered, would OMC stock be a top communication services stock to buy right now?
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Another top name in the industry today would be T-Mobile. Put simply, this is a company that engages in providing wireless communications services. Depending on customers’ needs, these wireless services are available through postpaid, prepaid, and even wholesale. Furthermore, the company also sells devices to dealers and other third-party distributors for resale through independent third-party retail outlets.
Earlier this month, T-Mobile announced the launch of its breakthrough 5G Home Internet service for Metro by T-Mobile customers. It will be accessible in more than 7,000 Metro stores across the country. This move makes the Un-carrier the first to launch fixed wireless home broadband services for prepaid customers with no annual contracts. Investors should note that the telecommunication services sector is highly competitive and having such variety could be a much-needed advantage long-term.
Now, T-Mobile is certainly not resting on its laurels. Recently, the company introduced Magenta Drive for BMW and the first 5G-connected cars in the U.S. Therefore, the all-new 2022 BMW iX and i4 will come with 5G ready and unlimited data. This also means that the car could turn into a mobile Wi-FI hotspot and allow connectivity to all in-car devices. Given all this, would TMUS stock make your list of top communication services stocks to buy right now?
To sum up the list, we have Zoom. Despite being one of the biggest beneficiaries of the pandemic, ZM stock is currently hovering around its pre-pandemic level. This comes as investors assess the future growth potential of the company. That said, people and large corporations alike have realized the convenience that Zoom brings to their lives. The company’s platform connects people through video, phone, chat as well as content sharing. Its core product includes Zoom Meetings, Zoom Phone, Zoom Rooms, and many more.
In February, Zoom announced an omnichannel contact center solution, Zoom Contact Center. At launch, the center will have over 100 agents, supervisors, and contact center administrator features. It combines unified communications and contact center capabilities with the useability of the Zoom platform. Thus, it supports customer service use cases and workflows using channels like video and voice, with SMS and web chat planned for the future.
Financially, Zoom has also been making strides over the past year. In the fiscal year 2022, its total revenue grew by 55% year-over-year to more than $4 billion. Meanwhile, its GAAP net income was $1.38 billion, or $4.50 per share, which is approximately double that of the prior year’s numbers. The company believes that its customers will continue to transform the way they work and Zoom will be able to capitalize on this opportunity. Thus, should you be keeping tabs on ZM stock?