Communications Sector Hits Bottom: Move to Marketweight
- By John Tierney
- 4 min read
Summary
- The communications index of the S&P 500 had a great run until last year, outperforming the market by 57%, thanks to Alphabet (GOOG) and Meta (META).
- However, it has been the second-worst performer in 2022, due both to collapsing highfliers and poor performance by old-line telecom, cable and media companies.
- The communications sector looks cheap now based on several measures. The highfliers now trade at reasonable P/E ratios and have solid business models.
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