Telcos at 20 paces: Telstra Corporation Ltd vs.TPG Telecom Ltd and Vocus Group Ltd

A three-way telco smackdown…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's been a tough time for telco investors recently, with the Telstra Corporation Ltd (ASX:TLS) share price, TPG Telecom Ltd (ASX:TPM) share price and Vocus Group Ltd (ASX:VOC) share price all falling meaningfully over the past 12 months.

Which came as a shock — it was hard to find a more popular and more profitable sector over the prior five years. We were all signing up to more plans, making more calls and using more data. And the laws of supply and demand — when the former was tight and the latter plentiful — meant happy days for telco owners… especially when the flurry of mergers and acquisitions continued apace.

And then the music stopped.

Oh, not the growth in consumption: that has continued unabated. But we're all getting more for either the same or less. And there are simply fewer new contracts being signed. The go-go years seem to be over, and shares fell from stratospheric levels.

Happily, at Motley Fool Share Advisor we sold TPG and Vocus before the rot really set in. Indeed, we rebought one of them just recently at much lower prices.

And we've liked Telstra all along, even if the past 6 months haven't been kind, share-price wise.

The telcos won't grow like topsy from here on in, but that doesn't make them bad investments. In fact, three of our services here at The Motley Fool have waded into the telco space again recently.

And dividends make the journey a little smoother, including the likes of this company you should check out.

Motley Fool contributor Scott Phillips (TMFGilla) has no position in any stocks mentioned. The Motley Fool Australia owns shares of Telstra Limited, TPG Telecom Limited, and Vocus Communications Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Technology Shares

A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.
Technology Shares

Up 60% in two months, is it too late to buy Pro Medicus shares?

Pro Medicus has been delivering solid returns for years. Can the trend continue?

Read more »

Group of people in a gym high five each other surrounded by gym equipment.
Mergers & Acquisitions

This ASX tech stock is hitting a record high on acquisition news

The market is responding positively to this news. Let's dig deeper into it.

Read more »

A man in a suit face palms at the downturn happening with shares today.
Technology Shares

Guess which ASX 300 share is crashing 17% on shock news

Investors are rushing to the exits on Thursday. Let's find out why.

Read more »

Cheerful boyfriend showing mobile phone to girlfriend in dining room. They are spending leisure time together at home and planning their financial future.
Technology Shares

These were the best ASX 200 tech stocks to buy in May

Shareholders of these shares were smiling last month. But why?

Read more »

A woman smiles as she sits on the bus using her phone and listening to music through headphones.
Technology Shares

Here's why I think these ASX tech shares are buys in June

These stocks have loads of potential.

Read more »

A young man wearing a black and white striped t-shirt looks surprised.
Technology Shares

Why did the Life360 share price rocket 51% in May?

This ASX 200 stock smashed the market last month with an incredible gain.

Read more »

Man ponders a receipt as he looks at his laptop.
Technology Shares

Up 30% since April, are Xero shares still a buy?

Xero shares have surged 30% since April, but can this SaaS leader's share price keep rising?

Read more »

A man and a woman sitting in a technology-related work environment high five each other while the man wears headphones around his neck and the woman sits in front of a laptop.
Share Market News

Strong gains for Wisetech, TechnologyOne, and Catapult amid ASX 200 tech sector lead

ASX technology shares led the market with a 3.85% increase while the ASX 200 lifted 0.88% last week.

Read more »