Investing Topics: Telecom Stocks

The key takeaway from third-quarter results: The Big Three of US communications are still building wealth and selling cheaply.

Can the sum of the parts actually be greater than the whole? Shareholders of AT&T Inc (NYSE: T) will get a chance to find out, now that activist investor Paul Singer’s Elliott Management has taken a $3.2 billion stake in the communications giant.

Despite good news, several essential services companies have seen a 10% drop so far in 2019. The reason: politics. Our view for some of them is investors are over-estimating risks and underpricing their strengths.

Few sectors have dealt as much pain to unwary yield seekers over the past decade as communications. Here's the rundown on the weakest of the herd.

Barron's is piling on with an article concerning AT&T Inc’s (NYSE: T) loss of DirectTV subscribers, following up on a cover story critiquing the telecom giant's acquisition of Time Warner last year. Investors, however, saw the situation quite differently, pushing the stock to solid gains on earnings day, despite media mono-focus on the pay television unit.

Get big or go home: The "Big Four" will likely soon become the "Big Three."

There’s much to like in Comcast Corp’s (NSDQ: CMCSA) first quarter results.

First quarter results are in for US Telecom’s Big Two. The most important takeaway by far: Both companies remain on track with financial results, long-term strategy and building long-term shareholder value.

While much of the rebound in our CUI Conservative Income Portfolio and bond holdings has been due to reduced economic fears, the fact these companies have demonstrated strength in operating results has no doubt helped prices recover over the past four months.

Get big or go home: That’s the communications sector’s reality.