This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Will the End of the Two Year Contract Affect Mobile Telecom Stocks?

Investment ideas

Telecom stocks are often perceived to be boring, low-growth safety stocks. The percent return over the past year for AT&T is -7%, though its return on investment (ROI) is nearly 13% and its return on equity (ROE) is over 20%. The story for Verizon is the same.

Handset makers, on the contrary, have been market darlings since the mid-90s. But as the market becomes saturated, and phone companies are no longer willing to subsidize the manufacturers’ sales, expect to see their growth slow considerably and their margins shrink.

The following list includes both service providers and hardware makers selected for their market share, profitability, and exposure to upside or downside growth.

Click on the interactive chart below to see data over time. 

<p>Your browser does not support iframes.</p>

Do you think the end of the two year contract will be a boon or a bane for mobile telecom stocks? Use this list as a starting point for your own analysis.

1. T-Mobile US, Inc. ( TMUS): Provides communication services. Market cap at $23.49B, most recent closing price at $32.31.


2. AT&T, Inc. ( T): Provides telecommunication services to consumers, businesses, and other service providers worldwide. Market cap at $171.02B, most recent closing price at $32.47.


3. Sprint Nextel Corp. ( S): Offers wireless and wireline communications products. Market cap at $33.13B, most recent closing price at $8.40.


4. Verizon Communications Inc. ( VZ): Provides communication services. Market cap at $132.54B, most recent closing price at $46.23.


5. Motorola Solutions, Inc. ( MSI): Provides business and mission critical communication products and services for enterprise and government customers worldwide. Market cap at $16.75B, most recent closing price at $64.96.


6. Apple Inc. ( AAPL): Designs, manufactures, and markets PCs, mobile devices, and portable digital music players, and sells related software, services, and third-party digital applications. Market cap at $472.72B, most recent closing price at $527.55.


2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs