Why investors should consider selling their telecom stocks: Analyst
The telecommunications sector has lagged significantly behind the broader market and investors might want to consider selling some of these stocks in their portfolios, one analyst is warning.
Speaking with BNN Bloomberg’s Amber Kanwar on Wednesday, Keith Snyder, equity analyst at CFRA Research, said there is nothing exciting happening in the sector beyond its 5G investments, and many of the companies within the space are extremely indebted.
“The amount that companies are spending on their 5G deployment is measured in the hundreds of billions (of dollars), but they have yet to monetize these networks in any significant way,” he said. “Investors are really waiting for when does that money start flowing in, when do we see that return on investment.”
He recommended T-Mobile US, Inc. (TMUS) as his only buy recommendation within the sector has a sell rating on AT&T Inc. (T) and Verizon Communications Inc. (VZ).
Synder, his family, his firm and his investment banking clients do not own any shares of the stocks mentioned above.
For the full interview with Snyder, click the on video at the top of this article.