(C) Reuters. 2 Communications Services Stocks to Buy Now
People the world over were forced to adopt virtual lifestyles last year thanks to COVID-19 pandemic related restrictions. The shift in behavior has boosted the already growing demand for communications services such as broadband connectivity and wireless telecommunications. Given the expected continuation of some remote activities even after the pandemic’s defeat, we think communication services companies Cogent Communications (CCOI) and IDT Corporation (IDT) are well positioned to grow. So, it could be wise to scoop up these stocks now. Read on.Communications services, such as traditional landline, broadband, and wireless saw immense demand last year, with people worldwide forced to adopt remote lifestyles. For work, education, entertainment, and shopping, people had to resort to communication services. While the economic recovery this year has been helping people to return to their pre-pandemic “analog” lifestyles, the demand for communication services, along with the continuation of some pandemic-driven trends, is not expected to decline anytime soon. Investors’ interest in the communication service space is partly evident in the SPDR S&P Telecom ETF’s (XTL) 51.6% gains over the past nine months.
Rising demand for better connectivity should keep driving the industry’s growth. According to Rich Communication Services (RCS), the market’s size is projected to grow from $5.2 billion in 2020 to $11.7 billion by 2025, representing a 17.6% CAGR.
Given this backdrop, we think communications services companies Cogent Communications Holdings, Inc. (CCOI) and IDT Corporation (IDT) should witness decent growth in the coming quarters. So, it could be wise to bet on these stocks now.
2 Communications Services Stocks to Buy Now
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