Main communications actions for August 2021

The communications sector is made up of a wide range of companies that sell telephone and Internet services through traditional fixed lines, broadband or wireless. The sector also includes companies that are major creators and producers of movies, television shows, and other content. Among the best known companies in the communications sector is Facebook Inc. (FB), Comcast Corp. (CMCSA) and T-Mobile US Inc. (TMUS). The COVID-19 pandemic has dramatically boosted user activity for many streaming and entertainment services, while also causing a drop in advertising at some businesses.

Communications stocks, represented by Communication Services Select Sector SPDR ETF (XLC), have slightly outperformed the overall market. XLC has provided a total return of 42.7% over the past 12 months, above Russell 1000’s total return of 38.6%. These market performance figures and all statistics in the tables below are as of July 15, 2021.

Here are the top 3 communications stocks with the best value, the fastest growth, and the most momentum.

These are the communications stocks with the lowest price-earnings (P / E) ratio in the last 12 months. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P / E ratio shows that you are paying less for every dollar of profit generated.

Better value communications actions
Price ($) Market Cap ($ B) Final 12-month P / E ratio
Nexstar Media Group Inc. (NXST) 143.80 6.2 7.7
ViacomCBS Inc. (MORE) 41.29 26.7 9.1
Fox Corp. (FOX) 33.88 19.7 10.1

Fountain: YCharts

  • Nexstar Media Group Inc .: Nexstar Media Group is a broadcast television and digital media company. He is focused on the acquisition, development, and operation of television stations, interactive community websites, and digital media services in mid-market markets throughout the US.
  • ViacomCBS Inc .: ViacomCBS is a global multimedia company focused on creating premium content and experiences for audiences around the world. The company offers cable networks, content production and distribution, television stations, and digital broadcast services. It also operates other Internet-based businesses, as well as consumer publications. On July 15, ViacomCBS announced that it had reached comprehensive multi-year distribution agreements with Charter Communications, Inc. (CHTR). The agreements provide for the continuous transportation of ViacomCBS ‘network portfolio for Spectrum customers. The agreement also includes the license for ViacomCBS ‘set of streaming services. Charter serves more than 31 million customers. No other terms were disclosed.
  • Fox Corp .: Fox is an entertainment company that produces and licenses news, sports and entertainment content. The company’s content is distributed by telecommunications companies and distributors online and through cable television, direct satellite transmission, and similar offerings. The company also manages studios, theaters, editing areas, and other production facilities.

Here are the top communications stocks ranked by a growth model that rates companies based on a 50/50 weighting of their most recent quarterly year-over-year percentage revenue growth and their most recent quarterly earnings per share (EPS) growth. . Both sales and profits are critical factors for the success of a business. Therefore, ranking companies by a single growth metric makes a ranking susceptible to accounting anomalies from that quarter (such as changes in tax law or restructuring costs) that can make one or the other figure unrepresentative. of the business in general. Companies with quarterly EPS or revenue growth greater than 2,500% were excluded as outliers.

Fastest growing communications stocks
Price ($) Market Cap ($ B) EPS growth (%) Revenue growth (%)
Interpublic Group of Companies Inc. (IPG) 32.06 12.6 2,200 -4.4
T-Mobile US Inc. (TMUS) 148.34 185.0 -32.7 77.8
DISH Network Corp. (DISH) 39.91 21.1 661.5 39.8

Fountain: YCharts

  • The Interpublic Group of Companies Inc .: The Interpublic Group of Companies is a group of advertising and marketing services companies. He specializes in consumer advertising, digital marketing, media buying and communications planning, public relations, data management, and more. The company announced on July 7 the launch of Performance Art, a new global agency focused on technology, deep data and customer relationship management. The agency will partner closely with a variety of IPG companies.
  • T-Mobile US Inc .: T-Mobile is a leading telecommunications services company and a nationwide wireless service provider. The company offers prepaid, commercial and consumer options, as well as data plans. On July 16, T-Mobile announced that, together with a group of partners, it had completed the first wireless call that combined Authenticated Caller ID and Rich Calling Data (RCD). The use of RCD is considered an important step in protecting customers against fraudulent calls.
  • DISH Network Corp .: DISH offers direct broadcast satellite subscription television services, as well as interactive television programming, audio programming, and similar products. The company also offers targeted advertising services.

These are the communications stocks that achieved the highest total return in the last 12 months.

Communications actions with greater impulse
Price ($) Market Cap ($ B) Total return at 12 months (%)
Pinterest Inc. (PINS) 70.03 44.6 184.4
Of the year Inc. (YEAR) 406.00 53.8 163.3
News Corp. (NWSA) 24.91 14.7 99.0
Russell 1000 N / A N / A 38.6
Communication Services Select Sector SPDR ETF (XLC) N / A N / A 42.7

Fountain: YCharts

  • Pinterest Inc .: Pinterest operates a social media site that allows users to share photos, as well as small-scale animated GIFs and videos in a bulletin board-style format.
  • Of the Year Inc .: Roku builds and markets wireless devices that are used to stream audio and video content from the Internet to home entertainment systems. The company serves clients from all over the world.
  • News Corp .: News Corp. is an information and media services company focused on news and information, digital real estate, book publishing, and cable network programming. The company serves clients from all over the world. In its most recent quarterly earnings report, Q3 FY 2021, ended March 31, News Corp. posted a net income of $ 96 million versus a net loss of $ 1 billion a year earlier, as well as revenue growth. 3% year-on-year. These improvements were driven by strong momentum across the company, as well as non-cash impairment charges of $ 1.1 billion in the prior year.

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Mark Holland

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