New wireless technology that delivers faster, smarter connectivity is reshaping telecommunication services. The shift to 5G — fifth generation — and other emerging networks promises improved response time, more bandwidth, and more efficient performance. What’s more, the demand for wireless communication services continues growing at a rapid rate. Whether you’re looking for companies to invest in now or keep on your watchlist, the best wireless telecommunication services stocks are those with strong growth potential and market presence. Read on to find out which stocks have what it takes to succeed in this dynamic industry.
Telephone & Data Systems (TDS)
TDS is a leading provider of integrated communications services, including local and long-distance telephone service, high-speed internet, and video services. The company has a strong presence in each of its operating segments and offers various product bundles to its customers. Its service offerings include digital voice, Internet access, and high-speed Internet, as well as telecommunication equipment, cloud services, and cybersecurity products and services. TDS serves approximately 1.5 million customers and generates revenue from residential, business, and wholesale customers. The company also serves government and education customers. The company has a strong presence in the Midwest and Southeast regions, with a growing presence in the Southwest as well. TDS maintains a stable outlook and is expected to increase earnings from continuing operations by 11.6% to $2.33 per share for 2019, due to growth in net operating revenues and a reduction in expenses.
Shenandoah Telecommunications Company (SHEN)
Shenandoah Telecommunications Company provides communications and data services to businesses and consumers in the Mid-Atlantic and Midwestern regions of the United States. The company’s services include broadband internet, including fiber and copper-based data transport; data center and cloud services, including colocation, managed hosting and network-as-a-service; video services, including video and voice over internet protocol; and local and long distance voice services. The company’s services are delivered over a fiber-based network, including a fiber-to-the-premise network. The company also sells communications services, including broadband internet and managed network services, to government and education customers. The company generates revenue from retail, wholesale and other services. The company has a strong presence in the Mid-Atlantic and Midwestern regions and offers a range of high-speed communications and data services. Shenandoah Telecommunications Company has a stable outlook and is expected to increase earnings from continuing operations by 8.3% to $1.95 per share for 2019, due to growth in net operating revenues.
Partner Communications Company (PTNR)
PTNR provides converged communications services to consumers and businesses in Israel. The company’s services include data, voice, video and internet access; colocation, managed services and managed security; and wireless and mobile services. The company’s wireless service offers nationwide network coverage, 4G/LTE services and 5G network coverage in certain areas. The company also offers fiber optic services, including fiber to the premises, fiber to the building and fiber to the neighborhood and rural areas. The company’s fiber optic network covers 75% of the Israeli population and offers high capacity and low latency. The company’s services are delivered over a network that is approximately 94% fiber-based. PTNR’s services are marketed under the Orange, Blue and Unlimited brands. The company has a strong presence in Israel and offers a range of converged communications services. PTNR has a stable outlook and is expected to increase earnings from continuing operations by 17.9% to $1.73 per share for 2019, due in part to growth in net operating revenues.
PLDT Inc. (PHI)
PLDT is a leading integrated telecommunications company in the Philippines that offers a comprehensive range of diversified services to business and consumer customers. The company operates a fixed and mobile network, including a 4G LTE network. PLDT’s fixed network offers data and video services across multiple technologies, including fiber-based services. The company also offers data and video services on a mobile network that covers 99% of the Philippines’ population using 2G, 3G and 4G LTE technologies. The company’s services are delivered across both owned and leased infrastructure, including the use of a submarine cable system. PLDT generates revenue from subsidiaries in the Philippines and Asia, including Hong Kong and the Philippines. The company has a strong presence in the Philippines and offers a range of diversified telecommunications services. PLDT has a stable outlook and is expected to increase earnings from continuing operations by 10.8% to $1.88 per share for 2019, due in part to growth in net operating revenues.
The wireless telecommunication services industry is undergoing a transformation. The shift to 5G, the next generation of wireless technology, promises to bring faster and more reliable connectivity. The demand for wireless communication services is expected to rise with the proliferation of new technologies like the Internet of Things, autonomous vehicles, and virtual reality. The best wireless telecommunication services stocks are those with strong growth potential and market presence. If you are looking to invest in the telecommunications sector, these are three stocks worth considering. All three companies have strong growth potential and are set to benefit as the industry undergoes a transformation.