Top five communication stocks that rode the Q2 rebound

Highlights

  • Facebook, Inc’s (NASDAQ: FB) revenue rose 56% YoY in Q2, FY21.
  • Alphabet Inc’s (NASDAQ: GOOGL) revenue increased by 62% YoY in Q2, FY21.
  • The net income of Netflix Inc. (NASDAQ: NFLX) was US$1.35 Bn in Q2, FY21.

The communication sector comprises companies that provide services like internet, telephone, broadband, and wireless services. Besides, businesses involved in movies, television, social media, etc., also fall under the sector. With the economy recovering, the sector communication is seeing a strong comeback, pushing up gains in the equity markets.

Let's explore some of the top bluechip communication stocks in the market.

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Facebook, Inc. (NASDAQ: FB)

Facebook is a leading technology company based in Menlo Park, California. It provides a social media platform for users to connect.

The stock traded at US$347.86 at 11:36 am ET on September 23, up 1.35 percent from its closing price of September 22. Its stock value increased by 27.62 percent YTD.

The firm has a market cap of US$978.99 billion, a P/E Ratio of 25.72, and a forward P/E one year of 24.34. Its EPS is US$13.50.

The highest and lowest prices of the stocks in the last 52 weeks were US$384.33 and US$244.61, respectively. Its trading volume was 43,692,860 on September 22.

The revenue was US$29.07 billion in Q2, FY21, up by 56 percent from the year-ago quarter. Its net income came in at US$10.39 billion, representing an increase of 101 percent from US$5.17 billion in the second quarter of fiscal 2020.

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Communication Stocks: FB, Comcast, NFLX, GOOGL, TMUS

Comcast Corporation (NASDAQ: CMCSA)

Comcast is a media and telecommunication company that provides various media broadcasting and communication services. It is based in Philadelphia, Pennsylvania.

The stock was priced at US$56.81 at 11:50 am ET on September 23, up 1.41 percent from its previous closing price. The CMCSA stock rose 10.91 percent YTD.

The market cap is US$260.16 billion, the P/E Ratio is 21.15, and the forward P/E one year is 17.84. Its EPS is US$2.68.

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The highest and lowest stock prices for the last 52 weeks were US$61.80 and US$40.97, respectively. Its share volume on September 22 was 17,508,110.

The firm will report its third-quarter earnings on Thursday, October 28, 2021.

The revenue was US$28.54 billion in Q2, FY21, representing an increase of 20.4 percent from the same quarter of the previous year. Its adjusted net income came in at US$3.94 billion, compared to US$3.17 billion in the year-ago quarter.

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Netflix, Inc. (NASDAQ: NFLX)


Netflix is a California-based media company that produces various content like movies and television shows. It also provides its own over-the-top content platform for users.

The shares traded at US$594.94 at 11:59 am ET on September 23, up 0.73 percent from its closing price of September 22. Its stock value jumped 12.97 percent YTD.

The firm has a market cap of US$262.47 billion, a P/E Ratio of 61.45, and a forward P/E one year of 56.90. Its EPS is US$9.65.

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The highest and lowest stock prices for the last 52 weeks were US$615.60 and US$463.41, respectively. Its trading volume was 4,021,845 on September 22.

Netflix will report its earnings for the third quarter of fiscal 2021 on October 19, 2021.

The revenue was US$7.34 billion in Q2 of fiscal 2021, compared to US$6.14 billion in the previous year's same quarter. Its net income was US$1.35 billion, compared to a net income of US$720.19 million in the second quarter of fiscal 2020.

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Alphabet Inc. (NASDAQ: GOOGL)


Alphabet is a Mountain View, California-based conglomerate that offers a wide range of services like web search, advertisements, maps, etc.

The stock was priced at US$2824.00 at 12:22 pm ET on September 23, up 0.65 percent from its previous closing price. The GOOGL stock ticked up 62.54 percent YTD.

The market cap is US$1.88 trillion, the P/E Ratio is 30.59, and the forward P/E one year is 27.54. Its EPS is US$92.25.

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The highest and lowest stock prices for the last 52 weeks were US$2,925.07 and US$1,402.15, respectively. Its share volume on September 22 was 1,252,778.

The revenue surged 62 percent YoY to US$61.88 billion in the second quarter of fiscal 2021, up from US$38.29 billion in the year-ago quarter. Its net income came in at US$18.52 billion, or US$27.26 per diluted share, compared to a net income of US$6.95 billion, or US$10.13 per diluted share in Q2, FY20.

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The communication sector has seen strong global growth in 2021.

Source: Pixabay

T-Mobile (NASDAQ: TMUS)

T-Mobile is a mobile telecommunication company and offers various wireless communication services. It is based in Bellevue, Washington.

The shares traded at US$131.12 at 12:34 pm ET on September 23, up 2.65 percent from its closing price of September 22. Its stock value plunged 3.55 percent YTD.

The firm has a market cap of US$163.84 billion, a P/E Ratio of 42.08, and a forward P/E one year of 51.92. Its EPS is US$3.12.

The highest and lowest stock prices for the last 52 weeks were US$150.20 and US$107.56, respectively. Its trading volume was 6,952,830 on September 22.

The total revenue surged 13 percent YoY to US$20.0 billion in Q2, FY21, while its net income soared eight times more than the year-ago quarter's US$978 million.

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Bottomline

The communication industry witnessed significant growth, driven by innovation over the past few years. The S&P communication services sector jumped 23.32 percent YTD and 3.53 percent QTD. The sector's P/E ratio is 28.56. However, investors must carefully evaluate the stocks before investing.

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