Best Communication Services Stocks to Buy Now

Despite continued macro headwinds, pockets of opportunity remain among the best communication services stocks.

wireless communications network concept with digital charts in the sky and city background
(Image credit: Getty Images)

Historically, communication services is a robust sector with resilient fundamentals. This diverse segment of the market includes companies involved in advertising, broadcasting, internet media services, publishing, entertainment and mobile telecom services. The best communication services stocks range from mature operators that have been around for decades and pay attractive dividends to early stage growth startups, which are years away from showing profits.

This sector, like so many others, sold off last year alongside the broader market. And while many communication services stocks have shown strength so far in 2023, there are still a few concerns clouding the near-term outlook. 

For instance, recession worries have many companies cutting back on advertising spending, which could affect some of the big-name players in this space. Also, some of the largest companies in the sector are falling under the watchful eye of bipartisan regulators. Antitrust investigations could soon become a thing for the world's largest social and communications companies.

But there are "pockets of opportunity," writes Matthew Drukker, portfolio manager at Fidelity, including among streaming platforms and broadband/wireless providers. "Companies that can cut costs and maintain solid balance sheets may have the best long-term prospects to come out of a downturn in a stronger position," Drukker adds.

With that in mind, here are nine of the best communication services stocks to buy now. With a handful of household names and even some smaller opportunities making this list, communications is definitely one sector that shouldn't be overlooked by any investors with a long-term outlook.

Data is as of March 14. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. Analysts' average price targets courtesy of S&P Global Market Intelligence.

Tom Taulli
Contributing Writer,

Tom Taulli has been developing software since the 1980s when he was in high school.  He sold his applications to a variety of publications. In college, he started his first company, which focused on the development of e-learning systems. He would go on to create other companies as well, including that was sold to InfoSpace in 1996. Along the way, Tom has written columns for online publications such as Bloomberg, Forbes, Barron's and Kiplinger.  He has also written a variety of books, including Artificial Intelligence Basics:  A Non-Technical Introduction. He can be reached on Twitter at @ttaulli.