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These Are The 2 Telecom Stocks To Buy Right Now

These Are The 2 Telecom Stocks To Buy Right Now

Posted On August 2, 2022 1:37 pm
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The potential for a more competitive broadband market with the rising demand for faster data connectivity and the rising momentum of private cellular networks and edge computing markets should influence the telecom sector’s progress in the near term.

Moreover, the opening of a mid-band spectrum auction by the U.S. Federal Communications Commission (FCC) should boost the next generation 5G wireless services. This move might also bolster 5G coverage in rural America. The FCC has been auctioning spectrum in recent years to address the increasing wireless connectivity demand.

The global telecom market is thriving due to 5G networks, widespread usage of smartphones, and cloud-based technology. The market was estimated to be valued at $1.73 trillion in 2021 and is expected to surpass about $2.65 trillion by 2030, growing at a registered CAGR of 4.9% from 2022 to 2030.

Given the industry’s growth prospects, it could be wise to buy telecom stocks, Ooma, Inc. (OOMA) and Lumen Technologies, Inc. (LUMN).

Ooma, Inc. (OOMA)

OOMA offers communication services and related technologies for businesses and consumers in the United States and Canada.  The company provides its products through direct sales, distributors, retailers, resellers, and online.

On May 23, OOMA launched the new Ooma Office Pro Plus, a business communications service plan built to enable organizations to set up a simple call center quickly and affordably, among other benefits. This is expected to be strategically beneficial for the company.

OOMA’s total revenue increased 10.5% year-over-year to $50.34 million in the fiscal quarter ended April 30, 2022. Its gross profit grew 13.8% from the year-ago value to $31.95 million, while its net cash provided by operating activities came in at $819 thousand, up 93.2% year-over-year.

TOP 10 STOCKS FOR THE YEAR AHEAD

Analysts expect OOMA’s revenue for the fiscal quarter ended July 2022 to come in at $51.67 million, indicating an increase of 9.8% year-over-year. Also, the company’s revenue is expected to grow 10.3% year-over-year to $212.05 million in the ongoing fiscal year. It surpassed the consensus EPS estimates in all the trailing four quarters.

OOMA gained 1.5% over the past month to close the last trading session at $11.93.

OOMA’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, translating to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

OOMA also has an A grade in Growth and a B in Value, Stability, and Sentiment. It is ranked #1 of 19 stocks in the Telecom – Domestic industry.

Beyond what is stated above, we’ve also rated OOMA for Quality and Momentum. Get all the OOMA ratings here.

Lumen Technologies, Inc. (LUMN)

LUMN is a facilities-based technology and communications company that offers various integrated products and services under the Lumen, Quantum Fiber, and CenturyLink brands to business and residential customers worldwide.

On July 26, the U.S. Customs and Border Protection (CBP) selected LUMN to provide mission-critical and resilient communication service, internet connectivity, and network services that should…

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