3 Under-$10 Telecom Stocks Wall Street Analysts Recommend Buying

As the curtains roll down on an action-packed 2022, the world eagerly awaits a new year that will likely tame the rising inflationary pressure and mitigate recessionary fears. The challenging macroeconomic environment and a highly volatile equity market have highlighted the need for low-priced stocks with the potential for a healthy return. One of the safest options to capitalize on such unique money-minting opportunities is to adhere to Wall Street recommendations and follow the experts’ advice.

Before we try to replicate this model in the Telecom sector to identify three stocks priced below $10 with solid Zacks Rank and robust average broker rating, let us delve a little deep into the current market dynamics.

Telecom Sector Modalities

With virtual communication largely replacing in-person exchanges due to increasing work-from-home options, telecom firms have stepped in to fill the void and helped countless people with large-scale 5G deployments to stay digitally connected. The fifth generation of cellular technology, or 5G, has accentuated the need for high-speed, high-bandwidth and low-latency connections for digital sustainability.

5G has fast-tracked the wide proliferation of video and other bandwidth-intensive applications with a data transmission rate of about 10-100 times faster than the existing 4G networks. Billed as the technology of the future with faster download speed and low latency, 5G is touted as the primary catalyst for next-generation IoT services. These include connected cars, augmented reality, virtual reality platforms, smart cities and connected devices that are likely to revolutionize key industry verticals.

As the 5G ecosystem evolves with increased deployment across the globe, it is likely to offer a plethora of opportunities for diverse industries to spearhead innovation and redefine our daily lives. Riding on such growth drivers, various telecommunication firms are poised to benefit in 2023 and beyond. Below is a list of three such low-priced stocks in random order.

3 Low-Priced Telecom Stocks to Watch

Airgain, Inc. AIRG: Headquartered in San Diego, CA, Airgain offers integrated wireless solutions in the form of antenna products. These products are equipped to solve critical connectivity needs in both the design process and the operating environment across the enterprise, automotive and consumer markets. Ideal for original equipment and design manufacturers, vertical markets, chipset vendors, service providers, value-added resellers and software developers worldwide, the customizable antennas serve both indoor and outdoor connectivity issues.

Airgain has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. It has a long-term earnings growth expectation of 35% and delivered an earnings surprise of 86.4%, on average, in the trailing four quarters. It has a VGM Score of A. Currently trading at $6.56, it has an average brokerage recommendation (ABR) of 1.80 on a scale of 1 to 5 (Strong Buy to Strong Sell). ABR is the calculated average of actual recommendations made by brokerage firms and refers to the future potential of the stock. Earnings estimates for Airgain for the current year have moved up 163.2% since December 2021.

Kaleyra, Inc. KLR: Headquartered in Milan, Italy, Kaleyra offers mobile communication services to financial institutions, e-commerce players, OTTs, software firms, logistic enablers, healthcare providers, retailers and other large organizations worldwide. Through its proprietary platform and robust APIs, it manages multi-channel integrated communication services, consisting of messaging, rich messaging and instant messaging, video, push notifications, e-mail, voice services and chatbots across more than 190 countries, including all tier- 1 US carriers.

This Zacks Rank #2 stock has a VGM Score of A. Currently trading at 85 cents, it has an ABR of 1.50 on a scale of 1 to 5. Over the years, Kaleyra has emerged as a trusted global CPaaS provider, offering multi- channel integrated business communication solutions. The company is well-positioned to tap the huge potential in underpenetrated markets. Earnings estimates for Kaleyra for the current year have moved up 18.9% since August 2021.

TESSCO Technologies Incorporated TESS, sporting a Zacks Rank #1, delivered an earnings surprise of 126.1%, on average, in the trailing four quarters. Earnings estimates for TESSCO for the current year have moved up 44.3% since December 2021.

TESSCO offers products to the industry’s top manufacturers in mobile communications, Wi-Fi, wireless backhaul and related products. With more than three decades of experience, it delivers complete end-to-end solutions to the wireless industry. Currently trading at $4.75, it has an ABR of 1.00 on a scale of 1 to 5. TESSCO boasts multiple growth drivers over the next several years with the accelerated deployment of 5G and the increasing prevalence of the IoT.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

TESSCO Technologies Incorporated (TESS) : Free Stock Analysis Report

Airgain, Inc. (AIRG) : Free Stock Analysis Report

Kaleyra, Inc. (KLR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research