Telecom & Wireless

Goldman Sachs Has 6 Top Telecom Services Stocks to Buy for 2021

Wireless

T-Mobile US Inc. (NASDAQ: TMUS) finally has completed its long and arduous pursuit of former rival communication company Sprint. It provides wireless services for branded postpaid, prepaid and wholesale customers in the United States, Puerto Rico and the United States Virgin Islands.

The company offers voice, messaging and data services. It also provides wireless devices, including smartphones, wearables, tablets and other mobile communication devices, as well as accessories and wireline services. It offers its services under the T-Mobile, Metro by T-Mobile and Sprint brands.

The combination with Sprint could bring about a seismic shift in the mobile world. T-Mobile and Sprint’s combined assets could jump-start their 5G ambitions, pushing the industry further into the next-generation technology. They’ve also said they’ll lock in consumer prices for at least three years. As part of all the wrangling, Dish Network will become the fourth national carrier, giving consumers a new alternative.

Goldman Sachs has a $154 price objective, and the consensus target price is $151.43. The last T-Mobile stock trade on Tuesday hit the tape at $128.69, a retreat of over 3% for the day.

Cable

Top media and entertainment company Comcast Corp. (NASDAQ: CMCSA) remains a Wall Street favorite. It is the largest U.S. provider of cable services, with over 22 million basic subscribers. It owns NBCU, which includes the NBC TV Networks, Telemundo, MSNBC, USA, Syfy, Bravo, E!, CNBC and several other cable networks, as well as Universal Films and Universal Theme Parks.

Comcast has invested in technology to build an advanced network that delivers among the fastest broadband speeds and brings customers personalized video, communications and home management offerings.

Many on Wall Street feel that, with vaccinations beginning, Comcast shares are poised to outperform, driven by solid cable and improving NBCU/SKY results. The analysts feel that the company is well positioned for a V-shaped recovery and the shares are very reasonable at current levels.

Shareholders receive a 1.84% dividend. The $68 Goldman Sachs price target compares with a $54.34 consensus target. Comcast stock fell just shy of 3% on Tuesday to close at $50.01.

Media

Walt Disney Co. (NYSE: DIS) is a top consumer media company with multiple streams of income to push revenue. It is the largest publicly traded media and entertainment company and a global leader in producing high-quality, branded, family entertainment.

Key assets include its theme parks (six locations globally, which are slowly reopening), the ABC TV Network, ESPN, FX, National Geographic and other cable networks, iconic film studios Disney, LucasFilms, Marvel, Pixar, 20th Century Fox), Star India, direct-to-consumer streaming platforms (Disney+, 66% Hulu stake and ESPN+) and consumer products.

This is a giant reopening play for the theme parks, and the company’s Disney+ streaming product has been a massive success.

Shareholders receive a 1.46% dividend. Goldman Sachs has set a $209 price target. The posted consensus target is just $180.17, and Walt Disney stock was last seen Tuesday at $175.99 a share.