Favorable sub-sectors in communications: interactive home entertainment, and media – WF
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Interactive home entertainment and interactive media and services are some of the most favorable sectors, according to Wells Fargo’s GSR.
Wells Fargo Investment Institute’s Global Securities Research team published a list of what their analysts consider the most favorable sub-sectors within the S&P 500 (SP500).
In a report, analysts said that demand from the subsectors was pulled forward during the pandemic, but near-term growth could be subdued due to antitrust and regulatory threats to big tech companies.
They favor high-quality large-cap companies “that enjoy competitive advantages relative to industry peers.”
In addition, analysts said that they expect the hyper-scales “to continue committing capital to building out artificial-intelligence capabilities, expanding data-center capacity, developing AI platforms, and building out the infrastructure for operating large-language models.”
These are the top communications, home entertainment, and media stocks:
- Comcast Corp. (CMCSA) – Dividend yield: 3%; Estimated 12-month EPS: $4.40
- Walt Disney Co. (DIS) – Dividend yield: 0.8%; Estimated 12-month EPS: $5.20
- Electronic Arts Inc. (EA) – Dividend yield: 0.5%; Estimated 12-month EPS: $8.08
- Alphabet Inc. (GOOGL) – Dividend yield: 0.5%; Estimated 12-month EPS: $8.43
- Meta Platforms Inc. (META) – Dividend yield: 0.3%; Estimated 12-month EPS: $23.53
- Netflix (NFLX) – Dividend yield: 0%; Estimated 12-month EPS: $22.05
- Omnicom Group Inc. (OMC) – Dividend yield: 2.8%; Estimated 12-month EPS: $8.40
- TKO Group Holdings (TKO) – Dividend yield: 0.4%; Estimated 12-month EPS: $2.54
- T-Mobile US (TMUS) – Dividend yield: 1.4%; Estimated 12-month EPS: $10.54
- Verizon Communications (VZ) – Dividend yield: 6.1%; Estimated 12-month EPS: $4.67
Other social media and services ETFs: