The Best Communication-Services Stocks to Buy

Communication-services companies are integral to connecting people and businesses, offering a range of vital services such as telecommunications, media, and entertainment.

Over the past 12 months, the Morningstar US Communication Services Index rose 23.50%, while the Morningstar US Market Index gained 14.78%.

The 12 Best Communication-Services Stocks to Buy Now

These were the most undervalued communication-services stocks that Morningstar’s analysts cover as of Feb. 6, 2026.

1. The Trade Desk TTD
2. Charter Communications CHTR
3. Tencent Music Entertainment Group TME
4. Pinterest PINS
5. Cogent Communications CCOI
6. Omnicom Group OMC
7. NetEase NTES
8. Telus TU
9. Rogers Communications RCI
10. Reddit RDDT
11. Tencent Holdings TCEHY
12. BCE BCE

To come up with our list of the best communication-services stocks to buy now, we screened for:

• Communication-services stocks that are undervalued, as measured by our price/fair value metric.
• Stocks that earn narrow or wide Morningstar Economic Moat Ratings. We think companies with narrow economic moat ratings can fight off competitors for at least 10 years; wide-moat companies should remain competitive for 20 years or more.
• Stocks that earn a Low, Medium, High, or Very High Morningstar Uncertainty Rating, which captures the range of potential outcomes for a company’s fair value.

Here’s a little more about each of the best communication-services stocks to buy, including commentary from the Morningstar analysts who cover each company. All data is as of Feb. 6, 2026.

The Trade Desk

• Morningstar Price/Fair Value: 0.45
• Morningstar Uncertainty Rating: Very High
• Morningstar Economic Moat Rating: Narrow
• Forward Dividend Yield: None
• Industry: Advertising Agencies

Advertising agency The Trade Desk is the most affordable stock on our list of the best communication-services stocks to buy. The Trade Desk provides a self-service platform that helps advertisers and ad agencies programmatically find and purchase digital ad inventory (display, video, audio, and social) on devices like computers, smartphones, and connected TVs. The stock is trading 55% below our fair value estimate of $60 per share.

The Trade Desk is a demand-side platform that enables advertisers to plan, execute, and optimize data-driven ad campaigns across multiple media channels. Unlike ad giants like Google, Amazon, and Meta—often called walled gardens—TTD exclusively serves advertisers, avoiding conflicts of interest by not representing its own ad inventory.

The firm’s core value lies in algorithms that programmatically direct ad spending to the most effective opportunities while offering advertisers granular control over targeting. A complex regression model with countless predictor variables allows advertisers to create and execute ad strategies. The interplay of data on the predictor variables allows for quadrillions of permutations of targeting and advertising strategies.

The firm is broadening its scope beyond traditional DSP responsibilities with its OpenPath product, which aims to simplify the advertising supply chain by removing the ad exchange. We don’t believe this transition will be straightforward, as it requires publisher adoption, but if successful, it could expand margins, thanks to the removal of middlemen.

TTD generates revenue through a take rate—a percentage of what clients spend on advertising on the platform—which has averaged 20% over the past five years. Revenue has grown rapidly since TTD became a public company in 2016, up at a mid-30s average annual rate, and it has been profitable.

The total addressable market size for digital advertising is about $700 billion. We expect it to grow to $1.5 trillion by 2034. TTD currently holds just under 2% of the market and has been gaining market share at an impressive 15% annual growth rate—outpacing most walled gardens. However, we anticipate growth will slow due to rising competition from Amazon’s DSP. Amazon, with its scale and financial strength, is a formidable competitor that can pressure TTD’s growth arc. As a result, we estimate that its market penetration will slowly reach around 3.5% by 2034.

Read more about The Trade Desk here.

Charter Communications

• Morningstar Price/Fair Value: 0.51
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Narrow
• Forward Dividend Yield: None
• Industry: Telecom Services

Charter is the product of the 2016 merger of three cable companies, each with a decades-long history in the business: Legacy Charter, Time Warner Cable, and Bright House Networks. Charter Communications is an affordable communication-services stock, trading at a 49% discount to our fair value estimate of $450 per share. The telecom services firm earns a narrow economic moat rating.

We like Charter’s efforts to drive customer penetration by limiting price increases, improving customer service, and expanding its offerings to appeal to a variety of preferences. However, competition has increased over the past couple of years as fixed-wireless broadband has gained share and fiber networks expand, and we don’t expect Charter to return to broadband customer growth soon. But we still believe it can drive modest growth and generate consistent cash flows, especially after its rural network expansion wraps up.

Charter’s cable networks have provided a significant competitive advantage versus its primary competitors—phone companies like AT&T—as high-quality internet access has become a staple utility. However, the phone companies and multiple smaller private firms have increased fiber network investment over the past few years, adding another source of high-quality service. We believe Charter will remain a strong competitor, though, and that competition will remain rational over the long term as other carriers seek to earn adequate returns on their investments. However, this competition limits Charter’s growth potential.

Wireless technology has also emerged as a new competitor to fixed-line internet access, quickly taking market share and causing Charter’s customer base to shrink. We’re skeptical of wireless’ ability to meet network capacity on a wide scale over the long term. Still, wireless has clearly carved out a niche that will likely persist. If new data-intensive applications don’t emerge in the coming years, the number of broadband customers wireless can serve could prove larger than we expect.

We expect dense fixed-line networks like Charter’s could play an increasingly important role in powering wireless networks in the future. Charter has amassed 12 million wireless customers, primarily relying on Verizon’s network for coverage. We expect the firm will explore ways to handle as much wireless traffic as possible on its own infrastructure, but we also worry that Verizon or other wireless carriers may withhold capacity or drive up prices to serve hard-to-reach areas at some point.

Read more about Charter Communications here.

Tencent Music Entertainment Group

• Morningstar Price/Fair Value: 0.54
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Narrow
• Forward Dividend Yield: 1.10%
• Industry: Internet Content and Information

Next on our list of the best communication-services stocks to buy is Tencent Music Entertainment Group. Tencent Music is the largest online music streaming platform in China, established in 2016 through the merger of QQ Music, Kuwo Music, and Kugou Music. The stock is trading at a 46% discount to our fair value estimate of $30 per share.

The music streaming industry in China is still in its early stages of development, and Tencent Music has established itself as the largest player in the market, with around 600 million monthly active users. While it is often compared with Spotify, Tencent Music enjoys a more favorable competitive position in China due to its unique integration within the broader Tencent ecosystem, the absence of YouTube as a competitor, a wider range of service offerings, and a stronger focus on in-house content development.

Tencent Music’s subscriber/user ratio, currently at 20% versus Spotify’s 40%, presents a significant revenue opportunity. By gradually placing more content behind paywalls, the company can convert free users into paying subscribers. Music subscription prices in China remain lower than global norms due to a history of rampant piracy, which reduces consumers’ willingness to pay. However, with piracy largely addressed and a duopolistic market structure in place, subscription prices should rise over time, providing another driver for growth.

Unlike typical streaming platforms with gross margins of about 30%, Tencent Music’s gross margin is significantly higher, at 45%. This stems from a large portion of its content being produced in-house. Additionally, the fragmented structure of China’s music licensing market—where only 20% is dominated by top labels—gives streaming platforms like Tencent Music stronger bargaining power in negotiations with content owners, further supporting its profitability.

China’s antitrust laws in 2021 ended Tencent Music’s exclusive music copyright agreements, allowing competitors like Cloud Music to access previously unavailable content. While competitors are gradually narrowing the content gap, Tencent Music’s access to listening data from 600 million users and its ability to deliver highly personalized content play a critical role in reducing user churn. Over time, Tencent Music’s lead in content may diminish, but the competition is unlikely to devolve into a race to the bottom.

Read more about Tencent Music Entertainment Group here.

Pinterest

• Morningstar Price/Fair Value: 0.56
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Narrow
• Forward Dividend Yield: None
• Industry: Internet Content and Information

Pinterest is a social media platform with a focus on product and idea discovery. Pinterest is an affordable communication-services stock, trading at a 44% discount to our fair value estimate of $35 per share. The internet content company earns a narrow economic moat rating.

We view Pinterest as a differentiated player that has carved out a niche in a crowded digital advertising market. While the firm’s user count remains markedly below its larger social media peer Meta, we remain optimistic about the company’s ability to increase its share within digital advertising budgets by leveraging e-commerce features and ads on its platform, thus increasing ad monetization.

Pinterest’s strategy is to move more of the ad spending on its platform from brand awareness to commercial intent. Because the firm is a search and discovery platform, users often provide strong signals to advertisers about their intent to buy certain products.

With more than 500 million average monthly users spread across the globe, we see Pinterest as having the requisite scale to introduce and monetize more commercial searches on its platform.

Beyond placing ads against search items, we see Pinterest’s investments in artificial intelligence to improve ad-targeting and search results as value-accretive to the firm. With more than one billion posts on Pinterest saved by its users every week, Pinterest is also investing in image recognition technology that can pick out specific items within a saved pin and show users where to buy that product, as it is likely part of an aesthetic that the user liked.

As mentioned above, we don’t believe Pinterest has the scale or the capital to compete with larger digital advertising behemoths like Alphabet and Meta. However, by leveraging its investments in AI and focusing more on e-commerce, we believe Pinterest can be a credible competitor, worthy of attention from digital advertisers that are seeking to maximize their return on ad spending.

Read more about Pinterest here.

Cogent Communications

• Morningstar Price/Fair Value: 0.56
• Morningstar Uncertainty Rating: Very High
• Morningstar Economic Moat Rating: Narrow
• Forward Dividend Yield: 12.56%
• Industry: Telecom Services

Cogent carries over one-fifth of the world’s internet traffic on its network, providing high-capacity services to businesses. Cogent Communications is an affordable communication-services stock, trading at a 44% discount to our fair value estimate of $43 per share. The telecom services firm earns a narrow economic moat rating.

Cogent’s narrow focus served it well for most of the past 20 years, but the 2023 Sprint asset acquisition has strained the business. The Sprint business brought a long-distance data network that increases the range of services Cogent can offer, but also included several unprofitable customer agreements that Cogent has had to work through. Clear signs of accelerating growth haven’t materialized as quickly as hoped, and Cogent has generated very little cash flow over the past two years. Cutting the dividend has caused pain for shareholders, but we believe this shift puts the firm on a far more stable path, allowing it to invest in the business and negotiate agreements with greater confidence.

Cogent got its start acquiring distressed companies and signing very long-term network leases at steep discounts when the telecom bubble burst 25 years ago. The firm has used this low-cost position to undercut the prices of the major telecom carriers, delivering data connections between major traffic sources, primarily data centers, and to a handful of large office buildings. Sticking to this niche has delivered consistent revenue growth and gradually expanding margins.

The Sprint acquisition included an intercity network spanning about 19,000 miles, providing Cogent with the opportunity to provide infrastructure services, namely high-capacity wavelength circuits. Thus far, wavelength revenue hasn’t materialized as hoped, which Cogent has blamed on various delays rather than any change in the market. The wavelength and infrastructure markets are highly competitive, dominated by carriers with more extensive fiber networks, such as Lumen and Zayo, that offer a wider range of services.

In the era of artificial intelligence, where hyperscalers are rushing to secure data center capacity and connectivity, Cogent is positioned to benefit. In addition to wavelength services, the firm hopes to sell or lease data center space, also acquired in the Sprint transaction. But its recent struggles call into question its ability to execute or the nature of the competitive environment as AI demand evolves.

Read more about Cogent Communications here.

Omnicom Group

• Morningstar Price/Fair Value: 0.61
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Narrow
• Forward Dividend Yield: 4.15%
• Industry: Advertising Agencies

Omnicom is a holding company that owns several advertising agencies and related firms. Trading 39% below our fair value estimate, Omnicom has an economic moat rating of narrow. We think shares of this stock are worth $115 per share.

Omnicom, after its November 2025 acquisition of Interpublic Group, is the largest traditional advertising holding company, ahead of Publicis. Omnicom provides creative, media planning and buying, and reputation-management services to brand owners. The transition from traditional media advertising, such as newspapers and linear television, to digital advertising, including social media, has created an opportunity for agencies to differentiate with scale and data.

Before the rise of the internet, agencies generated most of their revenue by shepherding advertising campaigns on traditional media. Over the past 20 years, the pace of digital advertising growth has far outpaced that of traditional media. Digital ad spending as a percentage of total ad spending has increased from 40% in 2016 to 70% in 2024.

To add value for clients in the digital space, agencies need to incorporate data analytics offerings to compete in a larger, more fragmented, and complex ad market. This shift requires significant quantitative expertise in media planning and buying for an increasingly interconnected and global audience. Effectively, there was a transition from the Mad-Men-era creative freewheeling to the current environment, which is more akin to a humming server room manned by data scientists.

Most recently, against a competitive landscape that values data and artificial intelligence as much as (or more than) traditional creative, Omnicom acquired Flywheel Digital, a retail transaction data company, and agency competitor, IPG, to improve its personal identity graphing solution, precision marketing capabilities, and scale.

We believe that Flywheel will enhance Omnicom’s visibility into purchases in digital marketplaces. The IPG acquisition increases scale and should lead to better discounts in purchasing advertising space, but we think the addition of IPG’s Acxiom identity graphs has even more upside. The combined firm should be able to create an industry-leading identity solution that competes with Publicis’ Epsilon.

Read more about Omnicom Group here.

NetEase

• Morningstar Price/Fair Value: 0.61
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Narrow
• Forward Dividend Yield: 2.47%
• Industry: Electronic Gaming and Multimedia

Founded in the late 1990s as an internet portal, NetEase has transformed into a leading force in the second-largest online gaming company in China. NetEase is an affordable communication-services stock, trading at a 39% discount to our fair value estimate of $200 per share. The electronic gaming company earns a narrow economic moat rating.

NetEase holds a prominent position in the Chinese gaming market, owning some of the best-known online game titles. More importantly, most of these titles continue to generate substantial popularity. We expect NetEase’s frequent content updates for its core titles to drive consistent revenue generation. This, combined with the promising returns from recent investments in new game development, positions the company for continued free cash flow growth.

While the gaming industry is becoming more competitive, a key trend is benefiting established developers like NetEase—the growing player engagement with established franchises. Gamers are focusing their playtime on a smaller number of games, resulting in a larger revenue share for successful, long-standing franchises, including several developed by NetEase. This trend reinforces the value of NetEase’s portfolio of franchises and its ability to increase long-term player spending.

NetEase is also expanding its global reach, aiming to increase its overseas development exposure from 20% to 40%. Unlike Tencent’s mergers and acquisitions-focused expansion, NetEase invests earlier in the game development cycle, building studios from scratch. Furthermore, NetEase empowers its international studios with ample funding and creative autonomy, a strategy we believe is crucial given NetEase’s lack of experience in Western markets and the inherently creative nature of game development.

While gaming remains NetEase’s primary cash flow driver, its investments in other sectors, including music and education, hold long-term promise. Cloud Village, its music streaming platform, boasts over 200 million monthly active users as of 2024, solidifying its position as the second-largest music streaming service in China. Similarly, Youdao, NetEase’s online education platform, is capitalizing on the increasing demand for digital learning content in China.

Read more about NetEase here.

Telus

• Morningstar Price/Fair Value: 0.64
• Morningstar Uncertainty Rating: Low
• Morningstar Economic Moat Rating: Narrow
• Forward Dividend Yield: 8.63%
• Industry: Telecom Services

Telus is one of the Big Three wireless service providers in Canada, with over 10 million mobile phone subscribers nationwide, constituting almost 30% of the total market. Trading 36% below our fair value estimate, Telus has an economic moat rating of narrow. We think shares of this stock are worth $22 per share.

Telus is one of the three major Canadian wireless carriers, but we think its wireline unit is its standout business. Telus has replaced most of its legacy copper network with fiber, significantly upgrading the quality of the services it can deliver. This move has set Telus up for a prolonged period of success. Telus took a significant broadband share from Shaw in the years before Shaw was acquired by Rogers. While geographic disclosures are not as clean now that Shaw is part of a nationwide network, we suspect the trend has continued but slowed in western Canada, where Telus competes, now that Telus’ fiber network has been established for several years. Still, with its fiber ownership, Telus has outperformed its peers, achieving years of mid-single-digit fixed-line sales growth and margin expansion.

Telus is also one of the Big Three wireless providers in Canada, with about 27% market share. However, the wireless market has faced multiple headwinds that have muted sales growth. Most significantly, Quebecor is now competing on a national level with a boost from regulatory mandates that are allowing it to use Telus’ network while it builds out its own. The Big Three haven’t lost much market share, but they have been forced to compete with Quebecor’s low prices, leading to lower revenue per subscriber. At the same time, subscriber additions have plummeted throughout the industry, as a tighter immigration policy has led to fewer new Canadians in the market for wireless plans. Telus has a premier wireless network and is positioned to be a winner long term, but the wireless market may remain weak for multiple years.

Unlike its peers, Telus has also made substantial investments in businesses that are not typically related to telecom. We think these businesses—namely in the health, security, and agriculture industries—have a high degree of uncertainty and risk. They are typically small, growing faster than telecom, but not generating much profit. We see high potential upside but also the possibility for a drag on returns on invested capital.

Read more about Telus here.

Rogers Communications

• Morningstar Price/Fair Value: 0.69
• Morningstar Uncertainty Rating: Low
• Morningstar Economic Moat Rating: Narrow
• Forward Dividend Yield: 4.08%
• Industry: Telecom Services

Rogers Communications is the largest wireless service provider in Canada, with more than 11 million subscribers, equating to one-third of the total Canadian market. The firm earns a narrow economic moat rating, and the shares of its stock look 31% undervalued relative to our $52 fair value estimate.

Rogers Communications is the leader in Canada’s wireless market, with over 30% share, and has continued to invest heavily in improving its network. The firm has spent more than any peer on spectrum since 2019, cementing its position as a network leader. However, we don’t see any practical difference in the wireless networks of the major competitors. With Quebecor entering the market as a national wireless competitor and four participants offering excellent networks, we expect competition to weigh on prices throughout the industry, which should temper wireless services revenue growth even as Rogers maintains its leading share.

After completing its 2023 merger with Shaw, Rogers also has the most expansive fixed-line network in Canada, covering two-thirds of the population. We now think Rogers can maintain share against BCE and Telus, which are no longer materially adding to their improved fiber networks. We think cable sales and profits can remain stable, but we don’t see much opportunity for growth considering the higher-quality competition from telecom networks than it faced in the past and the ongoing secular declines in the number of customers subscribing to cable TV and landline phone services.

Media performance has been challenged by the move away from linear TV viewership and the shift to digital offerings that have impaired print, radio, and TV holdings, but Rogers holds assets that are much more valuable than their contribution to financial results reflects. Rogers wholly owns the Toronto Blue Jays and recently increased its ownership of Maple Leaf Sports & Entertainment, which owns the Maple Leafs, Raptors, Toronto FC, and other sports teams, to 75%. We believe these assets could fetch a higher price in a sale than their current value. We anticipate Rogers will monetize these assets in some form in 2026 but maintain majority ownership.

Read more about Rogers Communications here.

Reddit

• Morningstar Price/Fair Value: 0.70
• Morningstar Uncertainty Rating: Very High
• Morningstar Economic Moat Rating: Narrow
• Forward Dividend Yield: None
• Industry: Internet Content and Information

Reddit is a social media platform where users can engage in conversations, explore, and create communities centered around their interests. Reddit is an affordable communication-services stock, trading at a 30% discount to our fair value estimate of $200 per share. The internet content company earns a narrow economic moat rating.

We view Reddit as a differentiated social media platform centered around communities and shared interests called “subreddits.” Users engage within these subreddits through posts and comments, creating valuable audience-generated data based on the users’ explicit interest and intent.

This structure is particularly valuable to advertisers, as it gives them first-party contextual data to tailor their ad placements accurately. Additionally, many Redditors visit the platform actively seeking information or advice, giving advertisers a unique opportunity to engage with high-intent audiences in discovery mode who are actively researching products for reviews and feedback.

In a competitive landscape where many platforms vie for user attention and ad dollars (like Meta, Snapchat, and Pinterest), we believe Reddit’s differentiation and valuable contextual data positions the company well to capture a growing share of digital ad spending.

Reddit’s business strategy prioritizes growing daily active users through targeted international expansion, product innovation, and enhanced user experience. We are impressed with the company’s localization efforts and artificial intelligence-driven multilingual support to help reduce language barriers, thus attracting a diverse and wider user base. We like Reddit’s focus on adding innovative features, such as an immersive search, video integration, and gamified rewards, all of which help transform casual visitors into highly engaged daily users.

On the monetization side, we expect Reddit to enhance its advertising platform through improved targeting capabilities and diversifying ad formats. We foresee that the company’s strategic shift toward performance-based advertising can unlock higher-value commercial intent and drive more efficient click-through rates without overcrowding the user experience.

Looking ahead, we see potential to grow the data-licensing side of the business, as we view Reddit as a treasure trove of authentic and real-time user-generated data, which is in high demand among social listening and LLM training companies.

Read more about Reddit here.

Tencent Holdings

• Morningstar Price/Fair Value: 0.70
• Morningstar Uncertainty Rating: High
• Morningstar Economic Moat Rating: Wide
• Forward Dividend Yield: 0.80%
• Industry: Internet Content and Information

Tencent is the world’s largest game publisher, with top-grossing mobile hits like Honor of Kings and Peacekeeper Elite and a steady pipeline of new titles. Trading 30% below our fair value estimate, Tencent Holdings has an economic moat rating of wide. We think shares of this stock are worth $102 per share.

Over the past decade, Tencent has ridden the mobile gaming boom with hits like Honor of Kings and Peacekeeper Elite. Gaming remains its primary monetization engine, contributing an estimated 60% of operating income. With deep insight into gamer behavior and substantial financial resources, Tencent is well-positioned to keep developing high‑quality, durable franchises.

At the same time, Tencent has built a broad ecosystem across advertising, payments, cloud, music streaming, and more. The largest untapped lever sits inside WeChat. As China’s dominant super‑app, WeChat is a uniquely powerful marketing channel, and we expect its monetization to rise steadily—primarily via advertising.

The drivers are straightforward: higher user engagement across Tencent’s properties expands ad inventory; thoughtful increases in ad load lift yield; and AI‑enhanced targeting, powered by WeChat’s data, improves conversion and pricing. Together, these factors support a gradual, durable ramp in WeChat‑led ad revenue.

AI represents a meaningful new growth lever for Tencent. Despite AI chip export restrictions, Tencent’s differentiated approach—allocating GPUs to internal use rather than selling compute like other hyperscalers—allows it to convert AI directly into product and efficiency gains. Because Tencent owns the use cases, it can deploy models where they drive immediate impact. Early results are visible on the advertising side, and the strategy offers greater long‑term visibility.

While games and advertising will remain Tencent’s core revenue drivers, its leading position in financial technology, cloud, and enterprise software offers long-term value creation potential. Given China’s economic scale and widespread digital adoption, Tencent is poised to benefit from these opportunities by transforming its services into substantial revenue streams.

Lastly, Tencent was historically active in external investments, but in recent years has shifted toward buybacks and internal reinvestment. Looking ahead, the low‑hanging fruit in external deals is largely gone; we expect a more selective approach and, consequently, fewer opportunities for outsize returns from strategic investments.

Read more about Tencent Holdings here.

BCE

• Morningstar Price/Fair Value: 0.76
• Morningstar Uncertainty Rating: Low
• Morningstar Economic Moat Rating: Narrow
• Forward Dividend Yield: 5.12%
• Industry: Telecom Services

Telecom-services firm BCE rounds out our list of best communication-services stocks to buy. BCE provides wireless, broadband, television, and landline phone services in Canada. The stock is 24% undervalued relative to our fair value estimate of $33 per share.

BCE has strong wireless, wireline, and media units, but all three face challenges to growth, due to a combination of competition, a diminishing industrywide supply of new potential customers, and a reliance on legacy services.

BCE can take a share in a Canadian broadband market where it is already the largest provider, but this source of wireline strength is mitigated by exposure to landline phone service and the recent acquisition of Ziply in the US, where we see less advantage. In Canadian broadband, BCE’s network is well-positioned after the firm’s decade-long investment to overhaul its network with fiber, making BCE a much stronger competitor to cable-based offerings. However, with weak household formation, growing the internet subscriber base at a faster pace than the low single digits will be challenging.

We expect BCE to remain atop the wireless market with Rogers and Telus, with each having top-tier network quality and nationwide scale. However, there are challenges here, too. Reduction in immigration to Canada has severely depressed net new customer additions in the industry, and the entrance of a fourth national competitor, Quebecor, has weighed on prices. Network quality is not a differentiating factor for the biggest providers, and by regulatory mandate, Quebecor is entitled to use an incumbent network until it builds out its own, which it must do by 2029. We expect BCE to maintain its share, but it will have to compete on price, limiting its ability to grow revenue per customer.

BCE also has a quality media unit. Its Crave streaming video service provides a range of content, including exclusive Canadian rights to HBO Max. BCE also owns Canada’s top broadcast network (CTV) and sports network (TSN), which are now available via streaming as well as linear television. However, exposure to many less notable traditional television networks and other challenged businesses, including radio and out-of-home advertising, offsets the growth areas.

Read more about BCE here.

How to Find More of the Best Communication-Services Stocks to Buy

Investors who’d like to extend their search for top communication-services stocks can do the following:

• Review Morningstar’s comprehensive list of communication-services stocks to investigate further.
• Stay up to date on the communication-services sector’s performance, key earnings reports, and more with Morningstar’s communication-services sector page.
• Read Morningstar’s Guide to Stock Investing to learn how our approach to investing can inform your stock-picking process.
• Use the Morningstar Investor screener to build a shortlist of communication-services stocks to research and watch.