Hedge Funds Love These 6 Wireless Communications Stocks

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 |  Includes: DCM, IDCC, SKM, T, TSU, VIP
by: Kapitall

Interested in investing in the wireless industry but don't know how to start? Here are some ideas to begin your search.

We ran a screen on the wireless communications industry of the tech sector for stocks with the highest net institutional purchases over the current quarter, indicating institutional investors such as hedge fund managers and mutual fund managers believe these names will outperform.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬


We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you agree with institutional investors that these stocks will outperform? Use this list as a starting point for your own analysis.

List sorted by net institutional purchases as a percent of share float.

1. NTT DOCOMO, Inc. (NYSE:DCM): Provides wireless telecommunications services, packet communications services and satellite mobile communications services in Japan. Market cap of $79.44B. Net institutional shares purchased over the current quarter at 1.9M, which is 24.93% of the company's 7.62M share float. The stock has gained 1.45% over the last year.

2. VimpelCom Ltd. (NASDAQ:VIP): Operates as an integrated telecommunications services provider offering voice and data services through a range of wireless, fixed and broadband technologies. Market cap of $13.52B. Net institutional shares purchased over the current quarter at 18.5M, which is 6.46% of the company's 286.28M share float. The stock has lost 23% over the last year.

3. SK Telecom Co. Ltd. (NYSE:SKM): Provides wireless telecommunications services using code division multiple access and wide-band CDMA technologies. Market cap of $9.09B. Net institutional shares purchased over the current quarter at 89.5M, which is 25.14% of the company's 356.00M share float. Offers a good dividend, and appears to have good liquidity to back it up - dividend yield at 5.6%, current ratio at 1.43, and quick ratio at 1.41. The stock has lost 20.95% over the last year.

4. TIM Participacoes S.A. (NYSE:TSU): Provides mobile telecommunications services through global system mobile technology to business and individual customers in Brazil. Market cap of $6.80B. Net institutional shares purchased over the current quarter at 10.8M, which is 9.62% of the company's 112.21M share float. Offers a good dividend, and appears to have good liquidity to back it up - dividend yield at 4.57%, current ratio at 1.37, and quick ratio at 1.31. The stock has lost 27.8% over the last year.

5. InterDigital, Inc. (NASDAQ:IDCC): Engages in the design and development of digital wireless technology solutions. Market cap of $1.65B. Net institutional shares purchased over the current quarter at 3.7M, which is 8.81% of the company's 41.98M share float. The stock is currently stuck in a downtrend, trading 11.81% below its SMA20, 12.37% below its SMA50 and 23.67% below its SMA200. It has been a rough couple of days for the stock, losing 21.09% over the last week.

6. Leap Wireless International Inc. (LEAP): Provides digital wireless services under the Cricket brand name in the United States. Market cap of $728.07M. Net institutional shares purchased over the current quarter at 2.5M, which is 5.12% of the company's 48.80M share float. The stock is a short squeeze candidate, with a short float at 15.06% (equivalent to 5.58 days of average volume). It has been a rough couple of days for the stock, losing 6.28% over the last week.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.