The telecom and media scene has been under considerable pressure in recent months. Despite the negativity, analysts remain upbeat on a handful of names within the industry, with “Strong Buy” ratings and calls for some respectable upside over the year ahead.
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With high rates and industry-specific headwinds, it’s tough to get behind the following trio of names. However, those who brave the wreckage may be in a spot to set themselves up for decent results over the longer term.
Therefore, in this piece, we’ll use TipRanks’ Comparison Tool to check in with three upside-rich “Strong Buys” in the telecom and media scene. Specifically, we’ll examine two somewhat rocky telecoms and one battered media play.
T-Mobile (NASDAQ:TMUS)
T-Mobile is a telecom top dog that seems to have had its way with its rivals, specifically in the wireless space. As the 5G rollout continues, I view T-Mobile as one of the biggest beneficiaries. Though T-Mobile has seemingly been firing on all cylinders, the stock has been range-bound for around a year now, struggling to break that mid-$150s ceiling of resistance. Despite the share stall, I remain a fan of the trajectory from here and am staying bullish.
Undoubtedly, the 5G boom isn’t exciting anymore. Many of us have 5G or 5G+ on our smart devices these days. The wireless technology is nothing new and certainly not as jaw-dropping as the likes of generative AI!
Regardless, investors may be discounting the many years’ worth of profits to be had in the 5G boom. More AI, the rise of the Metaverse, IoT (Internet of Things), cloud gaming, and all the sort will feed a growing appetite for mobile data — not just any data, though, fast data that’s low in latency.
With so much 5G momentum behind it, I find T-Mobile to be a stock that’s an easy pick, even as share price momentum slows at the hands of industry-wide woes. The only knock against the stock is it has no dividend. For growth-focused investors, this should not be a problem. In fact, it may be a competitive edge, given how much it costs to stay up to speed in the telecom scene.
What is the Price Target for TMUS Stock?
T-Mobile stock is a “Strong Buy,” with 16 Buys and one Hold. The average TMUS stock price target of $178.33 implies 29.2% upside potential from here.
Rogers Communications (NYSE:RCI)
Rogers Communications is a Canadian telecom that may be worth consideration if you seek the perfect value play. Indeed, T-Mobile is the strong player in wireless, but shares go for a premium to the peer group with their 45.5 times trailing price-to-earnings multiple. Meanwhile, Rogers trades at a mere 16.6 times trailing price-to-earnings with a 3.4% dividend yield.
Further, Rogers operates in a less-competitive Canadian telecom scene, which has its perks! With the recent Shaw Communications (TSE:SJR.B) (another Canadian telecom) acquisition in the books, it will be interesting to see what type of synergies the firm can deliver. There’s a low bar on a stock that may have catalysts. As such, I’m bullish.
Rogers is eliminating positions amid its integration with Shaw. Undoubtedly, there was overlap, and the move should help the firm operate more efficiently. If all goes well, Rogers may be able to offer Shaw-Rogers bundles that can offer next-level value for consumers. The firm is already flexing its promo muscles with recent deals that offer significant savings for existing Shaw customers.
What is the Price Target for RCI Stock?
Rogers is a “Strong Buy,” with eight Buys and two Holds assigned in the past three months. The average RCI stock price target of $56.89 implies 29.5% upside potential.
Warner Bros. Discovery (NASDAQ:WBD)
Finally, we have big-media firm Warner Bros. Discovery, which has been in pain (falling around 50%) since the merger brought WBD stock to the Nasdaq exchange in 2022. On Friday, the stock slipped 5.3% to $12.40 per share, partly thanks to actors joining writers in their strike.
Undoubtedly, media has been an ugly place to be, but that’s why I like it, as WBD stock looks to retest all-time lows. At the end of the day, strikes don’t last forever, and WBD has wonderful assets that can stand the test of time. For this reason, I’m staying bullish.
Warner Bros.’s new streaming platform (now known as MAX) makes the company a rather strong rival in the streaming scene. As the company chips away at its debt load while the strike looks to reach a resolution, I do think WBD stock is a recovery play that may be too good to ignore.
At 0.69 times price-to-book (P/B), Warner Bros. Discovery trades at a juicy discount to book and ought to be appealing to the deep value crowd out there!
What is the Price Target for WBD Stock?
Warner Bros. Discovery stock is a “Strong Buy” comprised of 10 Buys and three Holds. At the time of writing, the average WBD stock price target of $21.73 implies a massive 76.5% upside potential from here.
Conclusion
Analysts are upbeat on each Strong-Buy-rated telecom and media stock. At this juncture, they expect the most gains from Warner Bros. Discovery from here (over 76% upside potential).
