From GOOGL to VZ: Top five communication stocks to explore in Q3

Highlights:

• Alphabet Inc. (NASDAQ: GOOGL) revenue increased by 23% YoY in Q1, FY22.
• Verizon Communications Inc. (NYSE: VZ) will report its second-quarter fiscal 2022 financial results on July 22.
• AT&T Inc. (NYSE: T) will release its second-quarter fiscal 2022 financial results on July 21.

The communication sector comprises companies selling phones, providing wired and wireless connectivity services, and producing movies, TV shows, and other media content. If the IT firms offer computers and software to help businesses and individuals stay connected, telecommunication firms provide the infrastructure to distribute information.

With digitalization rapidly expanding globally, it has become an increasingly essential modern means to stay connected or instantly send data to distant places. The following are some top S&P 500 communication services companies worth exploring in Q3.

Alphabet Inc. (NASDAQ: GOOGL)

Alphabet Inc is one of the leading holding companies based in Mountain View, California. It is the parent company of Google. Its shares closed at US$2179.26 on June 30, down 2.45% from their previous close. Its stock value decreased by 24.85% YTD.

Alphabet’s market cap is US$1.43 trillion, the P/E ratio is 19.71, and the forward one-year P/E ratio is 20.16. The EPS is US$110.56. The 52-week highest and lowest stock prices were US$3,030.93 and US$2,037.69, respectively. Its trading volume was 1,235,841 on June 29.

The company reported revenue of US$68.01 billion in Q1, FY22, an increase of 23% YoY. Its net income was USS$16.43 billion, or US$24.62 per diluted share, compared to US$17.93 billion, or US$26.29 per diluted share, in Q1, FY21.

Source: Pixabay

Verizon Communications Inc. (NYSE: VZ)

Verizon is another leading telecommunication holding firm providing clients with the communication, information, and other related services. It is based in New York.

The stock closed at US$50.75 on June 30, down 0.37% from its previous closing price. The VZ stock fell 3.22% YTD. Its market cap is US$213.13 billion, the P/E ratio is 9.85, and the forward one-year P/E ratio is 9.45. Its EPS is US$5.15.

The stock touched the highest price of US$56.85 and the lowest price of US$45.55 in the last 52 weeks. Its share volume on June 29 was 13,901,450. The company will report its second-quarter fiscal 2022 financial results on July 22.

Meanwhile, in the first quarter of fiscal 2022, its total revenue soared 2.1% YoY to US$33.6 billion, while its net income decreased by 12.4% YoY to US$4.7 billion.

Activision Blizzard, Inc. (NASDAQ: ATVI)

Activision Blizzard is a video game holding firm that develops interactive entertainment content. It is based in Santa Monica, California.

The shares closed at US$77.86 on June 30, down 0.13% from their closing price of June 29. Its stock value increased by 15.49% YTD. It has a market cap of US$60.87 billion, a P/E ratio of 24.64, and a forward one-year P/E ratio of 31.31. Its EPS is US$3.16.

The 52-week highest and lowest stock prices were US$95.99 and US$56.40, respectively. Its trading volume was 4,533,265 on June 29.

The company's total net revenue was US$1.76 billion in Q1, FY22, compared to US$2.27 billion in the year-ago quarter. Its net income was US$395 million, against an income of US$619 million in Q1, FY21.

T-Mobile US, Inc. (NASDAQ: TMUS)

T-Mobile US is a wireless network operator that provides mobile communication services like voice, messaging, data, etc. It is based in Bellevue, Washington.

The stock closed at US$134.54 on June 30, up 0.13% from its previous closing price. The TMUS stock rose 17.57% YTD. Its market cap is US$168.65 billion, the P/E ratio is 60.06, and the forward one-year P/E ratio is 45.55. Its EPS is US$2.24.

The stock touched the highest price of US$150.20 and the lowest price of US$101.51 in the last 52 weeks. Its share volume on June 29 was 2,773,151.

The company's revenue surged 1.8% YoY to US$20.12 billion in Q1, FY22. Its net income was US$713 million, or US$0.57 per diluted share, versus US$933 million, or US$0.74 per diluted share, in Q1, FY21.

AT&T Inc. (NYSE: T)

AT&T is a leading telecommunication company and is one of the largest providers of mobile telephone services in the US. The company is based in Dallas, Texas.

The shares closed at US$20.96 on June 30, up 0.05% from their closing price of June 29. Its stock value soared 5.33% YTD.

The firm has a market cap of US$149.62 billion, a P/E ratio of 8.84, and a forward one-year P/E ratio of 8.28. Its EPS is US$2.37. The 52-week highest and lowest stock prices were US$29.35 and US$18.67, respectively. Its trading volume was 26,585,680 on June 29.

The company will release its second-quarter fiscal 2022 financial results on July 21.

In the first quarter of fiscal 2022, its consolidated revenue was US$38.1 billion, while its net income attributable to common stock was US$4.8 billion, or US$0.65 per diluted share.

Bottom line:

The communication services sector was one of the worst-hit sectors this year amid a market downturn. Investors shunned growth stocks as inflation hit its fastest pace in four decades.

The S&P 500 communication services sector fell 29.35% YTD while decreasing 28.68% over the past 12 months; investors should exercise due diligence before investing in stocks.