Looking For The Best Telecom Stocks To Watch This Month? 3 To Consider
Some would consider the telecom industry an unsung hero amidst these tough times. As a result, telecom stocks have thrived. Telecom companies give us the necessary means to communicate and stay connected regardless of distance. Most people do not realize that these companies are behind many of our daily communication essentials. According to Business Wire, there are an estimated 7.7 billion active mobile broadband subscriptions worldwide. These numbers are likely thanks to the deployment of 4G LTE in the past few years. With growing mobile tech, the telecom industry could see another potential surge as 5G continues to roll out globally.
It is no wonder that the top telecom stocks now have seen steady growth and recovery since the stock market crash in March. More than ever, we are relying on their services to keep in touch with our loved ones, learn from a distance, and work from home. For example, T-Mobile (TMUS Stock Report) and Charter Communications (CHTR Stock Report) are seeing their share prices up by over 75% since their lows in March. In light of recent supply chain setbacks for coronavirus vaccines, we could see the current status quo be retained well into 2021.
In that case, telecom companies will likely continue to prosper. This could present an interesting opportunity for seasoned and new investors alike. As with most industries, the telecom sector will likely continue to evolve as new technologies and innovations emerge. Investors may be wondering if there are any potential good entry points into the industry. With all this in mind, here is a list of top telecom stocks to watch this week.
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Top Telecom Stocks To Watch This Week: AT&T Inc.
First up, AT&T (T Stock Report) needs no introduction. Besides being one of the largest providers of mobile and fixed telephone services in the U.S., it is also the parent company of mass media conglomerate WarnerMedia. This would make it the largest media and entertainment company globally in terms of revenue as well. It also operates hallmark entertainment services HBO Max and AT&T TV. This combination of services compliments each other and could be the key to the company’s success moving forward. AT&T’s share prices are up by over 6% in the past five trading days.
In its recent quarter fiscal posted in October, the company reported a 5% decrease in total revenue year-over-year. On the positive side, AT&T saw solid subscriber growth throughout the quarter across all segments. Primarily, its HBO Max subscribers more than doubled since its previous quarter. Overall, the company seems to be doing well despite the initial impacts of the pandemic still showing slightly. With strong subscriber momentum, the company appears to be in a good position to invest in its growth areas going into 2021.
On December 8, AT&T secured a $92 million contract with the Federal Bureau of Investigation (FBI). The deal involves AT&T’s FirstNet providing mobility services for the FBI. This five-year agreement will mean solid business for AT&T. Moreover, the FBI will be swapping over from company rival Verizon (VZ Stock Report) which gives AT&T another edge in the market. Given all this, do you think T stock will continue to thrive in the months to come?
Lumen Technologies (LUMN Stock Report) rebranded from CenturyLink on September 14 this year. The Louisiana-based telecom company offers a wide range of communication-based services. These include network services, security, and cloud solutions. Lumen serves global enterprise customers across the U.S., Europe, the Middle East, Africa, and the Asia Pacific. The company’s share prices are up by 11% in the past month.
In its recent quarter fiscal posted in November, the company reported a 3% dip in total revenue year-over-year. However, it also saw a 21% increase in diluted earnings per share. Seasoned investors appear to see something beyond the numbers when it comes to Lumen. Considering that Lumen is restructuring its business after rebranding, this shows proper resource management. CEO Jeff Storey mentions that the company will continue to invest in addressable markets in the form of its Lumen platform. Should this go as planned, the company could see improvement in its revenue trajectory in the long term.
Lumen already appears to be delivering on its promise. Yesterday, the company launched its Lumen Edge Compute (LEC) platform. The LEC leverages the company’s global fiber network, on-demand networking, and integrated security to provide customers with a plethora of benefits. They will now be able to extend their high-bandwidth, data-intensive applications out to the cloud edge with LEC. Essentially, this makes for a more efficient workflow as customers can quickly deploy applications and workloads on cloud servers located nearer to them. According to executive VP Shaun Andrews, this could be a game-changing upgrade to their current services allowing customers to “drive new digital experiences for their customers.” Do you think this could be the beginning of the rise of LUMN stock?
Top Telecom Stocks To Watch This Week: Telus Corporation
Finally, we have Canadian telecom company Telus Corporation (TU Stock Report). The company offers a wide range of services including internet, voice, and Internet Protocol television (IPTV). Telus’s stock prices are up by 45% since the lows in March.
In its third-quarter fiscal reported in early November, the company saw a 7% rise in revenue year-over-year. The company attributed this to its impressive customer growth over the quarter. It saw all-time high new customer growth with 277,000 new customers for its wireless and wireline loading services. On top of that, the company’s quarterly dividend rose by 7% as well. The company also announced the reinstatement of a multi-year dividend growth program which targets annual growth between 7% to 10% through 2022. Investors may take this as a promising sign for the company’s projected future growth.
In recent news, it was announced that 2.2 million Canadian seniors will receive a free smartphone and subsidized plan from Telus. This is part of the Canadian government’s Guaranteed Income Supplement (GIS) initiative. Seniors receiving the GIS will get a free refurbished smartphone, unlimited nationwide talk and text, and 3GB of data for only $25 per month. This campaign aims to ensure that they have proper channels of communication for their overall wellbeing, access to critical healthcare resources, and a means of staying connected with their loved ones. This is an amazing development for both investors and Telus. Will this be the catalyst that propels TU stock well into 2021? You be the judge.