Top 3 Communication Stocks To Have On Your Watchlist In October
Many types of communication stocks are trending well as we continue through 2020. The niche for communication stocks usually includes companies that offer video games, digital services, phone service, internet providers, television broadcasters and installers, and more. Companies like Verizon Communications (VZ Stock Report) and Charter Communications (CHTR Stock Report) have been trending due to the rise of technology being used in 2020.
This year, people are on things like cell phones and televisions much more due to the pandemic. Being stuck inside for long periods of time, it was expected that technology is going to reach new heights in the market. Not all communication stocks are performing well, but there are a lot that are. As we continue through 2020, more top communication stocks to watch show themselves as contenders for reaching new record highs. Let’s take a look at three communication stocks that have been able to perform well this year, or are on their way to performing well.
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Top Communication Stocks To Watch In October: Nokia Corporation
Let’s first talk about Nokia Corporation (NOK Stock Report) on this list of communication stocks to watch. Nokia Corporation is a telecommunications and electronics company that is based in Finland. Currently, Nokia’s focus has been set on the development of the new 5G technology. At one point the company was also the largest supplier of mobile phones and smartphones. Its focus shifted to telecommunications infrastructure after being purchased by Microsoft in 2014. So let’s look now into why NOK stock and this company is trending in the market.
On September 29th, Nokia announced that it completed a contract with BT as a supplier for its 5G radio access network equipment. BT is the largest mobile operator in the United Kingdom, making this a huge deal for the company. Nokia will become BT’s largest infrastructure partner, and supply its equipment and services at BT radio sites all over the UK.
The CEO of Nokia, Pekka Lundmark stated, “Our two companies have collaborated for over a quarter of a century in order to deliver best-in-class connectivity to people across the United Kingdom. We are proud to support BT’s 5G network evolution.”
Nokia also just announced that NASA has chosen the company to build 4G networks on the moon. This advancement is huge for the company. The Chief Technology Officer at Nokia, Marcus Weldon stated, “Reliable, resilient, and high-capacity communications networks will be key to supporting sustainable human presence on the lunar surface. By building the first high-performance wireless network solution on the Moon, Nokia Bell Labs is once again planting the flag for pioneering innovation beyond the conventional limits.” These are all the reasons that NOK stock is trending in the market.
Top Communication Stocks To Watch In October: AT&T Inc.
Next up on this list of communication stocks to watch is AT&T Inc. (T Stock Report). AT&T is telecommunication, media, and tech company that provides wireless telecom, video, internet, and more. Its services are operated using satellite, IP based, and streaming options. Its audio programming services include AT&T, Cricket, AT&T PREPAID, and DIRECTV. By owning the DIRECTV and SKY brands, it also holds a very large market share in the television industry. So let’s look at what the recent news is for AT&T.
Back in July, the company reported its second-quarter results. Its service revenue fell 1.1% due to a decline in international roaming. Its revenue was $41 billion compared to $45 billion year-over-year. This is due to the coronavirus pandemic having a bad effect on all of its segments. Its operating income was $3.5 billion vs. $7.5 billion year-over-year as well. Additionally, its net income attributable to common stock was $1.2 billion compared to $3.7 billion the previous year.
For this reason, T stock is sitting at a more than 5-year low at the moment. But if AT&T can turn things around, will it fix T stock price? That is unsure, but this communication stock is at a low point which some investors see as an opportunity to buy or sell. That is why T stock is on this list of communication stocks to watch.
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Top Communication Stocks To Watch In October: Warner Music Group Corp.
Last on this list of communication stocks is Warner Music Group Corp. (WMG Stock Report). Warner Music Group is a music content company that operates in recorded music and music publishing segments. The company focuses on the discovery and development of recording artists, as well as marketing, promotion, distribution, sale, and licensing for the artists. It owns plenty of record labels such as Warner Records, Atlantic Records, Asylum, Fueled by Ramen, and more. So let’s look at the recent news for this communication stock.
WMG Acquisition Corp recently announced a launch of $250 million additional senior secured notes. This was on October 19th, 2020. Back on August 4th, the company also released its fiscal third-quarter results for 2020. Its digital revenue grew 11.1%, while its total revenue was down 4.5%. Its net loss was $519 million versus a net income of $14 million the previous year. Revenue not being down too much was good for the company, along with its digital revenue growth.
The CEO of the company, Steve Cooper stated, “We’re very pleased with our performance this quarter, especially in light of the global pandemic. Our results highlight the underlying strength and resilience of our business. Streaming revenue grew double digits and our digital transformation continues.” In the last month, WMG stock is up 7.4%, making it a communication stock to watch.
