Five high-flying communication stocks to watch this fall

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Five high-flying communication stocks to watch this fall

 Five high-flying communication stocks to watch this fall
Image source: Sergey Nivens,Shutterstock

Highlights

  • Zoom Video Communications, Inc. (NASDAQ: ZM) has a P/E ratio of 117.59. The stock closed at US$337.74 on Aug 25.
  • JOYY Inc’s (NASDAQ: YY) current dividend yield is 3.7%, and its P/E ratio is 36.12. The stock closed at US$56.47 on Aug 25.
  • Fox Corporation’s (NASDAQ: FOX) dividend yield is 1.34%.

The communication sector includes companies that provide broadband, wireless or landline services, electronic data processing, entertainment, movies, streaming services, and interactive platforms. These stocks saw robust gains during the covid restrictions last year.

Here we explore the top five communication stocks in the market.

Zoom Video Communications, Inc. (NASDAQ: ZM) 

It is an online communication provider headquartered in California. It offers a secure communication platform for individual and corporate clients.

Zoom will declare its second-quarter results on September 30, 2021.

Its revenue for the quarter ended April 30, 2021, was US$956 million compared to US$328 million in the previous year. The net income was US$227.5 million or US$0.74 per share diluted, compared to US$27 million or US$0.09 per share diluted in the April quarter of 2020.

The company has a market capitalization of US$101 billion and a P/E ratio of 117.59. Its forward P/E for one year is US$102.66.

The stock closed at US$337.74 on Aug 25, 2021.

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JOYY Inc. (NASDAQ: YY) 

JOYY Inc is a Singapore-headquartered social media platform that creates entertainment content and provides sharing features.

The company has a market capitalization of US$4.7 billion. Its P/E ratio is 36.12, and the current dividend yield is 3.7%, with an annualized dividend of US$2.03.

For the June quarter of 2021, JOYY’s revenue was US$661.7 million compared to US$473.5 million in the previous year. The net loss from continuing operations attributable to controlling interest of JOYY was US$109.3 million or US$1.43 per ADS diluted, compared to US$28.5 million or US$0.39 per ADS diluted in the same quarter the previous year.

The stock closed at US$56.47 on Aug 25, 2021.

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Fox Corporation (NASDAQ: FOX) 

It is a media company headquartered in New York and has three reportable revenue segments. These are cable network programming, television and other, and corporate and eliminations.

Fox has a market capitalization of US$19.6 billion with a P/E ratio of 9.49. The dividend yield currently is 1.34%, and the annualized dividend is US$0.48.


Its revenue for the fiscal year ended June 30, 2021, was US$12.9 billion compared to US$12.3 billion in FY 2020. It logged a net income of US$2.2 billion compared to US$1.06 billion in FY 2020. The Fox stock closed at US$34.29 on Aug 25.

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Electronic Arts Inc. (NASDAQ: EA) 

The company is headquartered in California and provides digital entertainment products like video games and other online content and services.

The company has a market capitalization of US$40.3 billion and a P/E ratio of 60.98. Its forward P/E ratio is 27.65, the dividend yield is 0.48%, and annualized dividend is US$0.68.

The revenue for the June quarter of 2021 were US$1.6 billion compared to US$1.5 billion in the June quarter of the previous year. The net income was US$204 million or US$0.71 per share diluted compared to US$365 million or US$1.25 per share diluted in the same period a year ago. The stock closed at US$141.86 on Aug 25.

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Source - pixabay

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Roku, Inc. (NASDAQ: ROKU) 

The company is headquartered in California and provides a streaming platform.

It has a market capitalization of US$47 billion. The P/E ratio of the company is 214.63, and the forward P/E one year is 285.06.


Roku’s revenue for the June quarter of 2021 was US$645 million compared to US$356 million in the year-ago period. The net income was US$73.5 million or US$0.52 per share diluted against a net loss of US$43.1 million or US$0.35 per share diluted in the June quarter of 2020. 

The stock closed at US$353.47 on Aug 25, 2021.

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Bottomline

The S&P 500 communication index gained 26.91% year-to-date compared to the S&P 500 index YTD gain of 19.02%. Communication services providers are witnessing rapid growth of late, driven by innovation and investment in new technologies despite the competition.

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