Quarter-End Insights

Communication Services: Undervalued With a Case of Merger Fever

Brian Colello, CPA
  • Overall, we view the communications services sector as undervalued at a market-cap-weighted price/fair value of 0.82.
  • U.S. telecom consolidation is in the works with a T-Mobile-Sprint merger.
  • In Europe, telecom is focused on convergence and increased build-outs of fiber and 4G.
  • In telecom and cable, we continue to see migration from traditional pay-TV providers to over-the-top, or OTT, offerings.

Brian Colello, CPA does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.