Communications businesses cover a variety of industries. They can include phone and internet service providers, advertising giants like Facebook, and television station operators like Nexstar Media Group, Sinclair Broadcast Group, and ViacomCBS. Investors can track the communications sector through ETFs like the Communications Services Select Sector SPDR ETF. Alternatively, investors can pick the best communication stocks to buy individually.
How Do The Valuations Look?
Nexstar Media Group currently has a P/E ratio of 11.3. Sinclair Broadcast Group, meanwhile, trades at a P/E ratio of 4. The trend is similar with ViacomCBS, trading at a P/E of 6.6. So, the broadcast sector is currently valued at depressed levels. In comparison, companies like Facebook are trading at a P/E of 33. Comcast Corporation closed at $44.33 on 19th October, trading at a P/E of 17.7. T-Mobile seems to be the most expensive stock within the group, trading at a P/E of 36.8.
So Which Communication Stocks To Buy Now
Nexstar Media Group closed at $87.04 on 19th October 2020, down 8.5% for the past month. However, the stock has gained 88% since the March market crash, which is significantly higher than the S&P500’s 53% during the same period. On a 5-year basis, Nexstar has gained 64%. Facebook’s stock has gained 5.3% over the past month, 75% since the March market crash, and 155% in the last 5 years. It has been one of the best performers in recent times.
Comcast is down marginally for the past month at 0.78%. It is up 36% since the March market fall and up 43% on a 5-year basis. ViacomCBS is down 6.4% for the past month but up 140% since the March market crash. It has bounced back very strongly since the pandemic-triggered crash and is among the top communications stocks to buy now.
Lastly, Sinclair Broadcast Group is down 11.6% in the past month, up 40% since March, and down 40% on a 5-year basis. So, Nexstar, Facebook, and ViacomCBS are the best performers as far as the stock price is concerned.