Top Communications Stocks for January 2022

VIAC, ROKU, and GOOGL are top for value, growth, and momentum, respectively

The communications sector is comprised of a broad range of companies that sell phone and Internet services via traditional landline, broadband, or wireless. The sector also includes companies that are major creators and producers of movies, television shows, and other content. Well-known companies in the communications sector include Meta Platforms Inc. (FB) (formerly known as Facebook), Comcast Corp. (CMCSA), and T-Mobile U.S. Inc. (TMUS).

Communications stocks, represented by the Communication Services Select Sector SPDR ETF (XLC), have underperformed the broader market. XLC has provided a total return of 18.9% over the past 12 months, behind the benchmark Russell 1000 index's total return of 27.2%. These market performance figures and all statistics in the tables below are as of Dec. 23, 2021.

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

Best Value Communications Stocks

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

Best Value Communications Stocks
  Price ($) Market Cap ($B) 12-Month Trailing P/E Ratio
ViacomCBS Inc. (VIAC) 30.58 19.8 6.0
Nexstar Media Group Inc. (NXST) 152.78 6.2 7.3
Altice USA Inc. (ATUS) 16.14 7.3 7.4

Source: YCharts

  • ViacomCBS Inc.: ViacomCBS is a global multimedia company focused on creating premium content and experiences for audiences across the globe. The company provides cable networks, content production and distribution, television stations, and digital streaming services. It also operates other Internet-based businesses as well as consumer publishing. On Nov. 30, 2021, ViacomCBS announced that it would sell its television and film studio CBS Studio Center in Los Angeles, a site covering 55 gross acres, to a partnership formed by Hackman Capital Partners LLC and Square Mile Capital Management LLC for approximately $1.85 billion. The center consists of 1 million square feet of space, including 22 stages and numerous support facilities.
  • Nexstar Media Group Inc.: Nexstar Media Group is a television broadcast and digital media company. It buys, develops and operates television stations, interactive community websites, and digital media services in medium-sized markets throughout the U.S.
  • Altice USA Inc.: Altice USA provides digital cable television, high-speed broadband, internet, local news, data, and digital advertising, among other offerings. The company serves customers across the U.S. For Q3 2021 ended Sept. 30, Altice USA reported net income attributable to stockholders of $266.9 million, compared with a net loss for the prior-year quarter. Revenue climbed by 5.8% year-over-year (YOY), driven primarily by growth in the company's News & Advertising and Business Services segments.

Fastest-Growing Communications Stocks

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

Fastest-Growing Communications Stocks
  Price ($) Market Cap ($B) EPS Growth (%) Revenue Growth (%)
Roku Inc. (ROKU) 233.52 31.4 433.3 50.5
News Corp. (NWSA) 22.33 13.2 450.0 18.2
Electronic Arts Inc. (EA) 132.54 37.5 61.9 58.6

Source: YCharts

  • Roku Inc.: Roku provides TV streaming services and streaming devices. It operates a streaming platform that connects customers with thousands of channels on a wide range of streaming services.
  • News Corp.: News Corp. is a media company that provides news, cable network programming, book publishing, digital real estate, and other services globally. For Q1 FY 2022 ended Sept. 30, 2021, News Corp.'s net income grew more than five-fold as revenue surged by 18.2% YOY. The performance was driven by strong growth across multiple segments, including the Digital Real Estate Services and Book Publishing businesses.
  • Electronic Arts Inc.: Electronic Arts develops and publishes entertainment software for video game consoles, personal computers, cell phones, and handheld game players. The company also offers online game services.

Communications Stocks With the Most Momentum

These are the communications stocks that had the highest total return over the past 12 months.

Communications Stocks With the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Alphabet Inc. (GOOGL) 2,938.33 1,950 70.0
Live Nation Entertainment Inc. (LYV) 118.54 26.6 65.5
The Interpublic Group of Companies Inc. (IPG) 36.85 14.5 62.0
Russell 1000 Index N/A N/A 27.2
Communication Services Select Sector SPDR ETF (XLC) N/A N/A 18.9

Source: YCharts

  • Alphabet Inc.: Alphabet is a holding company and the parent company of Google. Through subsidiaries, the company provides web-based search, maps, software, mobile operating systems, advertisements, consumer content, and more. Note that this listing refers to the company's Class A shares.
  • Live Nation Entertainment Inc.: Live Nation Entertainment produces and sells tickets for live concerts. The Company also offers ticketing services for arenas, stadiums, professional sports franchises and leagues, college sports teams, performing arts venues, museums and theaters. On Dec. 6, Live Nation announced that it had finalized its acquisition of a 51% controlling interest in OCESA Entretenimiento, a leading promoter in Latin America. The aggregate purchase price of the acquisition was MXN$8,835 million ($431.0 million). This acquisition will significantly expand Live Nation's business in Latin America.
  • The Interpublic Group of Companies Inc.: Interpublic is a group of advertising and marketing service companies. It specializes in consumer advertising, digital marketing, communications planning and media buying, public relations, data management, and more.

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  1. YCharts. "Financial Data." Accessed Jan. 2, 2022.

  2. ViacomCBS Inc. "ViacomCBS To Sell CBS Studio Center For $1.85 Billion." Accessed Jan. 2, 2022.

  3. Altice USA Inc. "Altice USA Reports Third Quarter 2021 Results." Accessed Jan. 2, 2022.

  4. News Corp. "NEWS CORPORATION REPORTS FIRST QUARTER RESULTS FOR FISCAL 2022," Pages 1, 8. Accessed Jan. 2, 2022.

  5. Live Nation Entertainment Inc. "Live Nation Closes Acquisition Of OCESA, The Third Largest Promoter Globally And Leading Live Entertainment Company In Mexico, Further Growing Business In Latin America." Accessed Jan. 2, 2022.