The global telecom industry has grown significantly over the past few months and is expected to continue thriving on increasing demand for communication services amid the resurgence of COVID-19 cases. So, we think it could be wise to bet on fundamentally sound foreign telecom stocks Telefónica (TEF), KT (NYSE:KT), and Türk Telekomünikasyon (TRKNY), which are currently trading at price discounts to their peers. Read on for a closer look at these names.Over the past few months, the telecom industry has grown significantly, making consistent innovations and improvements based on 5G, the internet of things (IoT), and artificial intelligence (AI). In addition, the industry has been capitalizing on the growing demand for advanced communication services.
Consumer fixed data services, in particular, have been playing an important role in enabling people to work from home. According to a ResearchAndMarkets report, the global telecom market is expected to grow at a 6% CAGR over the next four years. Asia-Pacific accounted for 34% of the market last year, while North America accounted for 32%.
Against this backdrop, we think it could be wise to bet on quality foreign telecom stocks Telefónica, S.A. (TEF), KT Corporation (KT), and Türk Telekomünikasyon Anonim Sirketi (TRKNY) that are currently trading at discounts to their peers. In addition to having overall A (Strong Buy) or B (Buy) ratings in our proprietary POWR Ratings system, each of these stocks has an A grade for Value.