Here's My Favorite Telecom Stock for 2022
Looking for big gains in 2022? At the end of each year, many investors look to the underperformers, or "dogs," of the year to do just that. In that light, some may want to look toward the telecom sector, which has produced long-term wealth but had a rough 2021.
As the pandemic has raged for the past two years, mobile and broadband subscriptions have grown above the level of gross domestic product (GDP), fueling gains for many telecom stocks in 2020. But midway through 2021, the sector fell out of favor. Broadband subscription growth slowed, leading to fears of market saturation after the pandemic bump. Investors also seem to fear that with all wireless providers showing net additions in a saturated market, something eventually has to give. Highly aggressive promotions for free 5G devices have only added to fears of margin-killing price wars.
With many leading telecom stocks down or lagging far behind the 29% gains of the S&P 500 this year, stronger players may be primed for a bounce in 2022. And the best-positioned telecom, in my opinion, could be in for very solid gains this coming year.
Source Fool.com
