The U.S. telecom sector has delivered a robust performance over the past year, outpacing broader market gains. The S&P Telecom Select Industry Index surged around 37% over the past year, significantly outperforming the S&P 500's 22.95% gain.
This strength has inevitably seeped into telecom-focused ETFs, making them attractive investment avenues. Here are three ETFs that could be a door for investors to ride this wave:
Strong gains in several telecom ETFs speak of the sector's bullish momentum:
- Vanguard Communication Services ETF
(VOX ) : Up 10% over the past three months and 31.36% over the past year. - Fidelity MSCI Communication Services Index ETF
(FCOM ) : Climbed 9.83% in the past three months and 31.52% over the past year. - iShares U.S. Telecommunications ETF
(IYZ ) : Gained 6.7% over three months and 15% in a year.
Notably, telecom giants AT&T
- Comcast exceeded Wall Street's expectations, driven by strong broadband revenues, despite customer losses. Earnings per share (EPS) is at 96 cents adjusted revenue at $31.92 billion; net income was $4.78 billion, up 47% year over year, and adjusted EBITDA growth of 10%.
- Verizon's Q4 results reflected healthy growth, with both revenue and earnings surpassing estimates. Its EPS was recorded at $1.10 adjusted, revenue at $35.68 billion, and net Income at $5.11 billion, rebounding from a loss a year ago.
- AT&T reported strong subscriber growth and operational efficiency gains, with EPS and revenues at $0.54 and $32.3 billion respectively. Net Income of $4.03 billion nearly doubled from a year ago.
- T-Mobile's stock gained after it reported strong fourth-quarter results, surpassing analyst expectations. Its EPS was $2.57, and revenue came in at $21.87 billion.