The telecommunications industry, often referred to as telecom, encompasses companies that enable global communication through various technology-driven platforms. This includes providers of telephone services, cable and satellite television, internet services, and wireless communication. Telecom companies play an integral role in our connected world, as they offer the infrastructure necessary for data to be exchanged, whether it’s through a simple phone call or complex cloud computing processes. The industry is broadly categorized into two segments: wired telecommunications carriers, providing services such as landline phone, cable TV, and internet, and wireless telecommunications carriers, offering services via cellular and wireless networks.
Investing in telecom stocks can be an attractive prospect for many investors due to the industry’s steady and predictable cash flows, high dividend yields, and critical role in an increasingly digital and connected society. These companies often operate in heavily regulated environments and require substantial capital investments to upgrade infrastructure and maintain networks, leading to a high barrier to entry. This means established players tend to dominate the market. Furthermore, with the roll-out of new technologies like 5G, telecom stocks could offer substantial growth potential.
Despite the potential rewards, investing in telecom stocks also comes with risks. Factors such as regulatory changes, technology upgrades, intense competition, and high debt levels can impact the performance of companies in this sector. Hence, it’s crucial for investors to thoroughly understand the dynamics of the telecom industry and individual companies before investing. Moreover, here are three telecom stocks to watch in the stock market now.
Telecom Stocks To Invest In [Or Sell] Right Now
- AT&T Inc. (NYSE: T)
- Verizon Communications Inc. (NYSE: VZ)
- T-Mobile US Inc. (NASDAQ: TMUS)
AT&T (T Stock)
AT&T (T) is one of the world’s largest telecommunications companies. The company offers a wide range of services including wireless communication, broadband, and pay-TV. AT&T’s portfolio caters to a broad consumer base, from individual users to large enterprises.
Late last month, AT&T announced the date it will release its second quarter 2023 earnings results. Diving in, the telecom giant is set to report its Q2 2023 earnings on Wednesday, July 26, 2023. The results will be announced prior to the U.S. stock market opening.
Year-to-date, shares of T stock have dropped by 27.53%. Meanwhile, as of Monday’s afternoon trading session, AT&T stock is trading at $13.58 a share. Could now be a good time to keep T stock on your watchlist at these price levels?
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Verizon Communications (VZ Stock)
Second, Verizon (VZ) is a global leader in delivering broadband and other wireless communication innovations to mass market, business, government, and wholesale customers. The company’s portfolio caters to a broad consumer base, from individual users to large enterprises.
Also, at the end of June, Verizon announced when it will report its second quarter 2023 financial results. Specifically, the company reported it will release its Q2 2023 earnings on Tuesday, July 25, 2023. For context, last quarter, VZ reported earnings of $1.20 per share and revenue of $32.9 billion.
Similar to AT&T, Verizon has had a tough start to the year. As such, shares of VZ stock have fallen by 20.78% year-to-date. While, during Monday’s afternoon trading action, Verizon stock is trading at $31.75 a share.
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T-Mobile US (TMUS Stock)
Finally, T-Mobile US, Inc. (TMUS) operates in the wireless telecommunications space. The company’s merger with Sprint has increased its network coverage and capacity, an important step in addressing the ongoing shift toward 5G technology.
Last week, T-Mobile US announced the date and time it will report its second quarter 2023 financial results. In detail, the company will report its Q2 2023 earnings results on Thursday, July 27, 2023. To quickly recap, last quarter the company posted earnings per share of $1.58 and revenue of $19.6 billion.
Year-to-date, shares of TMUS stock have dropped by a modest 0.44%. Meanwhile, on Monday afternoon, TMUS stock is trading at $138.43 a share.
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