The telecom industry suffered through a rough patch last year due to the COVID-19 pandemic. However, telecom providers’ continuing efforts to invest in infrastructure and services, and a surge in demand for high-speed data connectivity have driven a solid recovery this year. So, we think telecom stocks AT&T (T), InterDigital (NASDAQ:IDCC), and Ooma (NYSE:OOMA), which look undervalued at their current price levels, could be ideal picks now.Due to the outbreak of the COVID-19 last year, the telecommunication industry suffered badly. However, telecom operators’ investments in infrastructure upgrades and value-added services have helped the industry achieve a solid recovery this year. In addition, with the emergence of wireless technologies like 5G, telecom companies have the opportunity now to capitalize on soaring demand for connectivity in the digital era.
Accelerating demand for high-speed data connectivity, rapid digitalization across industries and the explosion of consumer-generated multimedia content via Over-The-Top (OTT) applications should fuel the industry’s growth. Furthermore, the applications of wireless telegraphy, broadcasting, satellite communications, and fiber communications are expected to drive the telecom industry’s growth further. Indeed, the global mobile telecommunications market is expected to reach $835 billion by 2026, registering a 3.8% CAGR.
Therefore, we think it could be wise to scoop up quality telecom stocks AT&T Inc. (T), InterDigital, Inc. (IDCC), and Ooma, Inc. (OOMA). They look undervalued at their current price levels.