HomeMarket NewsThe Intriguing World of Telecom Stocks: March 2024 Edition

The Intriguing World of Telecom Stocks: March 2024 Edition

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As March ushers in a fresh breeze of investment opportunities, the realm of telecom stocks stands out as a beacon of promising returns. In an industry abuzz with the relentless sprawl of fiber optics and the electrifying advent of 5G technology, investors are eagerly eyeing the vast potential for growth.

Discover the Telecom Titans

Embark on a journey through the telecom landscape as we unveil the top seven stocks that are poised to soar this year. These companies not only promise substantial upside for investors but also boast enticing dividends and share buyback programs, offering a blend of stability and growth unrivaled in the market.

American Tower Corp (AMT)

American Tower Corporation logo on a smartphone with the website in the background on a computer screen. AMT stock.

Source: T. Schneider / Shutterstock

American Tower Corp (NYSE:AMT) stands tall as a global telecom Real Estate Investment Trust (REIT) with control over nearly a quarter-million communication sites worldwide.

Despite a slight dip in Adjusted Funds From Operations (AFFO) per share, AMT is gearing up for a future driven by the potent forces of 5G technology and artificial intelligence. The company sets its sights on a robust free cash flow surge on the horizon, spurred by burgeoning 5G demand.

Forecasts indicate a steady revenue growth trajectory for AMT from 2024 to 2026, with revenue estimates hovering around $11.2 billion for 2024, gradually ascending to $12.6 billion by 2026. This enticing growth narrative cements AMT’s position as a prime telecom stock to acquire.

Globalstar (GSAT)

In this photo illustration the Globalstar (GSAT) logo seen displayed on a smartphone screen

Source: rafapress / Shutterstock.com

Globalstar (NYSE:GSAT) has emerged as a standout player in 2023, marking a momentous 53% surge in total revenue for the third quarter, fueled by enhanced profitability and a remarkable 125% surge in Adjusted EBITDA compared to the previous year.

The company’s strategic focus on satellite procurement is evident through an expenditure of $110.2 million in the nine months leading up to September 2023. Looking towards 2024, Globalstar anticipates total revenue in the range of $225 million to $250 million, coupled with an anticipated Adjusted EBITDA margin of approximately 50% – a testament to the company’s operational prowess and growth projections.

With a compelling price-to-sales ratio of just 12 times sales, Globalstar shines as an undervalued gem among the telecom stocks, offering investors an enticing opportunity to capitalize on its promising prospects.

TELUS Corporation (TU)

Image of Fiber optical connections with servers

Source: Shutterstock

TELUS Corporation (NYSE:TU) takes center stage in the Canadian landscape, offering a diverse array of telecommunications and IT solutions.

Building on its robust 2023 performance, TELUS reported significant customer expansion in its TTech business segment during the second quarter of 2023, with a record-breaking total of 293,000 Mobile and Fixed customer additions.

Looking into 2024, TELUS has set ambitious targets including a 2 to 4 percent increase in TTech Operating Revenues, a 5.5 to 7.5 percent surge in Adjusted EBITDA, Consolidated Capital Expenditures around $2.6 billion, and a Consolidated Free Cash Flow up by approximately 30% over 2023.

With analysts tipping TELUS with a β€œHold” rating and a consensus price target of $20, signaling a potential 17.03% upside from current prices, the stock holds the promise of being an intriguing prospect among the telecom stocks roster.

Telecom Titans Showing Promising Signals for Long-Term Investment

AT&T (T)

AT&T Retail cell phone and mobility store. T stock

Source: Jonathan Weiss / Shutterstock.com

AT&T (NYSE:T) showcases resilience with a nearly 4% surge in wireless service revenue year-over-year and impressive postpaid phone net additions. The company plans to invest significantly in its fiber and 5G networks for 2024 and beyond, focusing on expanding into under-penetrated small and midsize business segments. By concentrating on extending fiber and 5G coverage to 75% of its network footprint by 2025 and slashing its legacy copper services footprint, AT&T positions itself for growth.

With a target of 120-150 million HBO Max/HBO subscribers by 2025 and a dividend yield around 6.5% as of writing, AT&T emerges as a compelling choice among telecom stocks for long-term investors.

Chunghwa Telecom (CHT)

a picture of cell towers during daytime

Source: Shutterstock

Chunghwa Telecom (NYSE:CHT) reigns as the largest telecom provider in China, offering a comprehensive suite of services. The brand forecasts revenue growth between 2.4% to 3.1% over 2023, estimating a range of NT$228.54 billion to NT$230.19 billion for 2024, driven by increased capital expenditure. The company’s robust financial performance is evident in its 4% rise in total revenues to NT$61.86 billion in Q4 2024, with the Consumer Business Group tallying a 4.4% surge to NT$36.54 billion.

With total revenue hitting NT$223.20 billion in 2023 on the back of core business segment expansions like mobile, ICT, and broadband services, CHT stock emerges as an enticing choice for investors eyeing an emerging market telecom stock, especially with a modest P/E ratio of 25.

Altice USA (ATUS)

In this photo illustration the Altice USA (ATUS) logo seen displayed on a smartphone

Source: rafapress / Shutterstock.com

Altice USA (NYSE:ATUS) based in New York, is a telecom company providing TV, internet, and phone services. Despite challenges in 2023, including a dip in earnings per share to -$0.26 for Q4, ATUS is on track for a resurgence. With planned operational enhancements, network expansion, and significant deleveraging ahead, ATUS could offer an upside for risk-tolerant investors.

Verizon Communications (VZ)

Verizon Communications: Poised for Growth in 2024

Verizon Communications: Poised for Growth in 2024

Strong Earnings Forecast

Verizon Communications (NYSE: VZ) has its eyes set on a prosperous horizon, with ambitious projections for 2024. The company anticipates an adjusted earnings per share ranging between $4.50 and $4.70 for the specified year, a figure that stands above the bar raised by analysts. This optimistic outlook is backed by a notable surge in wireless subscribers, witnessing a net addition surpassing 400,000 in the final quarter of the previous year.

Financial Momentum

Moreover, Verizon has begun to witness a healthier cash flow pattern alongside a strategic reduction in its debt profile. Such financial maneuvers are deemed critical for the company’s stock to potentially outpace the broader market come 2024.

Robust Dividend Yield

Yet, the crowning jewel of VZ at present seems to be its hefty dividend yield, currently standing at an impressive 6.62%. Given the company’s ongoing debt reduction efforts and enhancements in free cash flow, the likelihood of a dividend cut seems remote. This characteristic positions Verizon as a coveted jewel in the sea of telecom stocks, beckoning investors for a closer look.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Matthew ventured into financial markets coverage during the crypto craze of 2017 and has been a part of numerous fintech startups. His expertise now extends to Australian and U.S. equities, with his work featuring in distinguished platforms such as MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine.

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