We recently published a list of 11 Best Communication and Media Stocks to Buy According to Analysts. In this article, we are going to take a look at where Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) stands against other best communication and media stocks to buy according to analysts.
The communication and media sectors play a crucial role in connecting people and distributing information. These sectors are becoming increasingly significant in the modern economy and society. As technology advances, both the communication and media industries are expected to experience strong growth in the foreseeable future.
According to a report by The Business Research Company, the global media market alone was valued at $2.61 trillion in 2024. The market is expected to grow at a compound annual growth rate (CAGR) of 7.7% during 2025-2029 to reach a value of $2.83 trillion by the end of the forecast period. In 2024, North America was the largest region in the global media market.
Another report from The Business Research Company shows that the global telecommunication market was estimated to have a value of $2.98 trillion in 2024. The market is expected to grow at a CAGR of 5.6% from 2025 to 2029 and reach above $3.93 trillion by the end of this period. In 2024, Asia-Pacific held the largest share of the global media market while North America was the second largest region.
Recent trends indicate a shift towards new and advanced technologies like 5G and the Internet of Things (IoT). According to PwC’s Global Telecom Outlook 2023-2027, telecom companies are expected to make significant investments in the infrastructure to better serve customers. As the shift towards 5G technology progresses and the demand for new technological standards rises, telecom companies are projected to invest $342.1 billion in their networks in 2027 alone.
PwC’s inaugural Global Telecom Outlook notes that telecom companies might need to change their strategies in a competitive environment and look for new growth opportunities in areas such as IoT solutions, private 5G networks for business customers, and fixed wireless home broadband for households. In some markets, these companies can also provide digital infrastructure, data, content, and platform services customized to the needs of various industries like entertainment and media, healthcare, and manufacturing. To stay competitive in this changing market, telecom companies must become more comfortable operating within broader ecosystems and looking beyond traditional services.
Methodology
To compile our list of the 11 best communication and media stocks to buy according to analysts, we looked for the largest media and communication companies. We reviewed our own rankings, financial media reports, and various online resources to compile a list of the best communication and media stocks. Next, we focused on the top communication and media stocks that analysts believe have the most potential for growth. We ranked the 11 best communication and media stocks to invest in based on their average price target upside potential according to analysts as of January 29, 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Is Turkcell Iletisim Hizmetleri AS (TKC) the Best Communication and Media Stock to Buy According to Analysts?
A mid-rise office building bustling with employees working on various telecom projects.
Average Price Target Upside Potential According to Analysts: 37.08%
Number of Hedge Fund Holders: 4
Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC), or simply Turkcell, is a major mobile phone operator and telecommunication and technology services provider based in Turkey. The company provides voice, data, TV, and value-added consumer and enterprise services on mobile and fixed networks. Turkcell Iletisim Hizmetleri (NYSE:TKC) also has investments abroad and with its wide coverage area and diverse range of services, it serves customers in Turkey and around the world.
The company is focused on efforts to expand its subscriber base while also divesting less profitable and non-core assets. In Q3 2024, Turkcell Iletisim Hizmetleri (NYSE:TKC) reported impressive growth in its Turkey subscriber base with 322,000 net additions. Overall, the company added a net of 515,000 postpaid subscribers, bringing the total net additions for the last 12 months to 1.9 million. The company’s postpaid subscriber base now represents 74% of its total subscriber base.
In September 2024, Turkcell Iletisim Hizmetleri (NYSE:TKC) completed the divestment of its assets in Ukraine to create shareholder value and improve the company’s financial standing. Turkcell Iletisim Hizmetleri (NYSE:TKC) no longer holds any shares, rights, or liabilities in Lifecell LLC, LLC Global Bilgi, and LLC Ukrtower operating in Ukraine. Following this move, the company’s cash position increased to TRY 82 billion.
Overall, TKC ranks 6th on our list of best communication and media stocks to buy according to analysts. While we acknowledge the potential of communication and media companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TKC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
