Telecom & Wireless

Deutsche Bank Stays Bullish on Towers and Telecom: 4 Stocks to Buy Now

The analysts believe near-term upside to estimates remain, and being in the early innings of 5G network upgrade cycles with leading tower and fiber/small cell portfolios, Crown Castle looks very well positioned.

Investors in Crown Castle receive a 3.81% distribution. Deutsche Bank has a $126 price objective, while the consensus estimate is $117.35. The stock closed Friday at $110.34.

Verizon

The stock of this top telecommunications company offers tremendous value. Verizon Communications Inc. (NYSE: VZ) is a global leader in delivering the digital world. Verizon Wireless operates America’s self-described most reliable wireless network, with 109.5 million retail connections nationwide. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.

Verizon reported better-than-expected second-quarter results as the company finished out the first half of 2018 strong. It enjoyed a total of 531,000 retail postpaid net additions, which includes 398,000 postpaid smartphone net adds. That total also includes tablet losses of 37,000 but additions of 369,000 other connected devices (mostly wearables). The carrier’s retail postpaid phone churn was much lower than overall retail churn at just 0.75%.

Investors receive a 4.5% dividend. The $59 Deutsche Bank price target compares with the $56.25 consensus target. The stock closed Friday at $52.47.

Zayo

This company has been a rumored takeover candidate and is a big potential 5G winner. Zayo Group Holdings Inc. (NYSE: ZAYO) provides comprehensive bandwidth infrastructure services in over 300 markets throughout the United States and Europe. Its delivers a suite of dark fiber, mobile infrastructure, and cloud and connectivity services to wireline and wireless customers, data centers, internet content providers, high-bandwidth enterprises and government agencies across its robust 82,000 route mile network.

The company also offers 45 carrier-neutral data center facilities across the United States and France. Zayo was the first to offer bandwidth shopping and buying in under two minutes through Tranzact.

The Deutsche Bank price target is $42. The consensus target is $42.31, and shares closed Friday at $37.70.

These top telecommunication, tower and data center stocks all make sense for growth investors looking for consistent returns and a degree of safety. With the volatility looking to go higher, they definitely make sense now.

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