Top communication stocks on S&P 500 to watch

Highlights

• Alphabet Inc. (NASDAQ:GOOGL) revenue rose 32% YoY in Q4, FY21.
  
  
• Comcast Corporation (NASDAQ:CMCSA) revenue soared over 9% YoY in Q4, FY21.
  
  
• Netflix, Inc. (NASDAQ:NFLX) revenue was US$29.69 billion for fiscal 2021.

The communication sector is one of the key economic segments in the US. The industry has been in focus lately as the quarterly earnings season is in high gear. Companies like Alphabet Inc, Meta Platforms Inc., T-Mobile US, Netflix, etc., have already reported. Around 70% of the companies that reported so far have beat analysts’ estimates.

Here we explore the top communication stocks on the S&P 500 Index.

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Alphabet Inc. (NASDAQ:GOOGL)

Price close on February 2, 2022: US$2960.00

Market Cap: US$1.94 trillion

One year return: 43.77%

Alphabet is a leading technology conglomerate firm based in Mountain View, California. It offers a range of services like search engine, cloud services, and other related solutions.

The company's revenue surged 32% YoY to US$75.32 billion in Q4, FY21, while its net income came in at US$20.64 billion or US$30.69 per diluted share. Its fiscal 2021 revenue rose 41% YoY to US$257.63 billion.

Its P/E ratio is 26.14, the forward P/E for one year is 26.02, and the EPS is US$112.23.

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Meta Platforms, Inc. (NASDAQ:FB)

Price close on February 2, 2022: US$323.00

Market Cap: US$679.70 billion

One year return: 21.13%

Meta Platforms, formerly Facebook, is a technology-driven social media company. The Menlo Park, California-based firm is the parent organization of Facebook, Instagram, WhatsApp, etc.

The company's revenue rose 20% YoY US$33.67 billion in Q4, FY21, while its net income came in at US$10.28 billion, or US$3.67 per share diluted.

Its P/E ratio is 17.47, the forward P/E for one year is 23.07, and the EPS is US$13.80.

Walt Disney Company (NYSE:DIS)

Price close on February 2, 2022: US$142.62

Market Cap: US$256.86 billion

One year return: -19.16%

Walt Disney is a global entertainment company. Its interests include media, theme parks, studio entertainment, etc. It is based in Burbank, California.

The company will release its fiscal first-quarter 2022 financial results on February 9.

For the quarter ended October 2, 2021, the company's revenue was US$18.53 billion, while its net income came in at US$255 million, or US$0.09 per diluted share.

Its P/E ratio is 129.45, the forward P/E for one year is 34.28, and the EPS is US$1.09.

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Comcast Corporation (NASDAQ:CMCSA)

Price close on February 2, 2022: US$49.99

Market Cap: US$229.95 billion

One year return: -0.95%

Comcast is a communication services company that offers a range of technology and media services to consumers. It is based in Philadelphia, Pennsylvania.

The company's revenue surged 9.5% YoY to US$30.33 billion in Q4, FY21, while its attributable net income came in at US$3.05 billion, or US$0.66 per share. In fiscal 2021, the company's revenue rose 12.4% YoY to US$116.38 billion.

Its P/E ratio is 16.61, the forward P/E for one year is 13.85, the dividend yield is 2%, and the annualized dividend is US$1.08.

Verizon Communications Inc. (NYSE:VZ)

Price close on February 2, 2022: US$

Market Cap: US$226.07 billion

One year return: -1.81%

Verizon is a telecommunication conglomerate firm based in New York. It offers communications, information, entertainment, and other related services.

The company posted revenue of US$34.1 billion in Q4, FY21, while its net income came in at US$4.7 billion, or US$1.11 per share. In fiscal 2021, the company's revenue rose 4.1% YoY to US$133.6 billion.

Its P/E ratio is 10.1, the forward P/E for one year is 9.84, the dividend yield is 4.81%, and the annualized dividend is US$2.56.

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Netflix, Inc. (NASDAQ:NFLX)

Price close on February 2, 2022: US$429.48

Market Cap: US$182.97 billion

One year return: -20.39%

Netflix is a media and production company. It offers subscription-based streaming services. It is based in Los Gatos, California.

In the quarter ended December 31, 2021, the company reported revenue of US$7.70 billion, while its net income came in at US$607.42 million, or US$1.33 per diluted share. In fiscal 2021, the revenue was US$29.69 billion.

Its P/E ratio is 36.67, the forward P/E for one year is 37.44, and the EPS is US$11.24.

AT&T Inc. (NYSE:T)

Price close on February 2, 2022: US$24.54

Market Cap: US$176.13 billion

One year return: -13.92%

AT&T is a multinational conglomerate firm based in Dallas, Texas. It is one of the leading telecommunication and mobile service providers in the US.

In the fourth quarter of fiscal 2021, the company reported revenue of US$41.0 billion, while its net income came in at US$5.0 billion, or US$0.69 per diluted share. In fiscal 2021, the company's revenue was US$168.9 billion.

Its P/E ratio is 8.94, forward P/E for one year is 7.92, the dividend yield is 8.52%, and the annualized dividend is US$2.08.

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Charter Communications, Inc. (NASDAQ:CHTR)

Price close on February 2, 2022: US$600.24

Market Cap: US$125.87 billion

One year return: -1.48%

Charter Communications is a telecommunication and mass media company based in Stamford, Connecticut. It also offers broadband and cable network services.

The company's revenue soared 4.7% YoY to US$13.21 billion in Q4, FY21, while its attributable net income came in at US$1.61 billion, or US$8.93 per diluted share. For the year ended December 31, 2021, the company's revenue rose 7.5% YoY to US$51.68 billion.

Its P/E ratio is 24.74, the forward P/E for one year is 19.51, and the EPS is US$24.83.

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

Price close on February 2, 2022: US$109.58

Market Cap: US$151.09 billion

One year return: -15.3%

T-Mobile is a communication firm specializing in wireless services. It is based in Bellevue, Washington.

It reported revenue of US$20.78 billion in Q4, FY21, while its net income was US$422 million, or US$0.34 per diluted share. Its total revenue in fiscal 2021 was US$80.11 billion.

Its P/E ratio is 50.2, the forward P/E for one year is 37.02, and EPS is US$2.41.

Activision Blizzard, Inc. (NASDAQ:ATVI)

Price close on February 2, 2022: US$79.25

Market Cap: US$61.61 billion

One year return: -14.57%

Activision Blizzard is a video game holding firm. It offers interactive online gaming content. It is based in Santa Monica, California.

In the fourth quarter of fiscal 2021, the company reported net revenue of US$2.16 billion, while its net income came in at US$564 million, or US$0.72 per diluted share. In fiscal 2021, the company's revenue was US$8.80 billion.

Its P/E ratio is 23.4, the forward P/E for one year is 22.97, the dividend yield is 0.59%, and the annualized dividend is US$0.47.

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Bottomline

The S&P 500 Communication Services sector rose 15.59% over the past 12 months. The industry saw modest growth last year.