Best European communication services stocks to buy in 2026
European communication services stocks offer investors exposure to the dynamic media, marketing, and telecommunications sectors that drive digital transformation across the continent. These companies provide essential connectivity and content solutions that benefit from increasing digitalization and changing consumer behavior patterns.
Publicis Groupe is a leading global marketing and digital transformation company headquartered in Paris, France, offering comprehensive advertising and communication services to clients worldwide. Deutsche Telekom AG operates as one of Europe's largest integrated telecommunications providers headquartered in Bonn, Germany, delivering mobile, fixed-line, and broadband services across the continent. Alma Media Corporation is a prominent Finnish media and digital services company that operates leading news media brands and digital marketplaces across Finland and other Nordic countries.
These European communication services stocks represent compelling opportunities for investors seeking exposure to the growing digital media and telecommunications sector. Consider adding these companies to your portfolio in 2025 to capitalize on the continued digital transformation and increasing demand for connectivity solutions across European markets.
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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in stocks mentioned in this article.
Now, let`s take a closer look at each of the companies:
Publicis Groupe (PA:PUB)
Publicis Groupe is a leading global marketing, communications, and digital transformation company headquartered in Paris, France. The company was founded in 1926 by Marcel Bleustein-Blanchet, and has grown to become one of the world`s largest advertising and media organizations. With a presence in over 100 countries, Publicis Groupe serves an extensive portfolio of clients across various industries, providing innovative solutions tailored to their needs.
The company specializes in advertising, media planning, data analytics, and digital transformation through its four interconnected hubs: Publicis Communications, Publicis Media, Publicis Sapient, and Publicis Health. Leveraging its proprietary AI-powered platform, Marcel, and a deep understanding of consumer behavior, Publicis Groupe delivers personalized and impactful campaigns. Committed to creativity and innovation, the company continues to redefine how brands connect with their audiences in a rapidly evolving digital landscape.
Publicis Groupe financial statements
Analysts recommendation: N/A
Financial Health
- Return on assets (ROA): 4.41%
- Return on equity (ROE): 17.7%
- Return on investment (ROI): N/A
Profitability
- Gross margin: 44.24%
- Operating margin: 14.13%
- Net profit margin: 10.15%
Growth
- EPS (past 5 years): N/A
- EPS (current): 6.75
- EPS estimate (next quarter): N/A
- EPS growth (this year): 6.6%
- EPS growth (next year): N/A
- EPS growth (next 5 years): N/A
- EPS growth (quarter-over-quarter): N/A
- Sales growth (past 5 years): N/A
- Sales growth (quarter-over-quarter): 10.9%
💡 Why invest in Publicis Groupe?
Several key factors make Publicis Groupe an attractive prospect for investors seeking exposure to the dynamic marketing and communications sector:
- Global Market Leadership: Publicis Groupe boasts a dominant market presence, offering a diversified portfolio of services across the communications landscape while maintaining strong client relationships and competitive positioning.
- Creative Innovation Focus: Their commitment to fresh ideas and cutting-edge technologies positions them to deliver impactful brand experiences for clients in the digital age, driving differentiation and premium pricing opportunities.
- Data-Driven Marketing Approach: Publicis Groupe leverages data and analytics to optimize marketing campaigns and measure success, ensuring a strong return on investment for their clients while enhancing campaign effectiveness and targeting.
- Omnichannel Service Expertise: Their ability to deliver seamless brand experiences across all channels, from traditional media to digital platforms, positions them well in today`s interconnected world and evolving media landscape.
🐌 Key considerations before investing in Publicis Groupe
The marketing and communications sector presents its own set of challenges:
- Intense Market Competition: The advertising industry is a crowded space with established players and emerging agencies vying for market share, creating pricing pressure and client retention challenges that impact profitability.
- Evolving Consumer Behavior: The way consumers interact with brands is constantly changing, requiring Publicis Groupe to adapt their strategies and stay relevant while investing in new technologies and capabilities continuously.
- Campaign Measurement Attribution: Accurately measuring the impact of marketing campaigns in an increasingly complex media landscape can be challenging, affecting client satisfaction and campaign optimization effectiveness.
- Economic Cycle Vulnerability: Marketing budgets are often among the first to be cut during economic downturns, potentially impacting Publicis Groupe`s revenue and creating volatility in financial performance and growth.
Final thoughts on Publicis Groupe
Publicis Groupe`s strong market position, focus on creativity and innovation, data-driven approach, and omnichannel expertise create compelling advantages for long-term investors seeking exposure to the vital marketing and communications sector. However, the competitive landscape, evolving consumer behavior, challenges in measurement, and economic sensitivity necessitate careful evaluation of market dynamics and business resilience. Like a master storyteller who adapts narratives to captivate diverse audiences, Publicis Groupe continues crafting compelling brand experiences while navigating the complex challenges of an evolving digital marketing landscape.
Deutsche Telekom (DE:DTE)
Deutsche Telekom AG is a leading telecommunications company headquartered in Bonn, Germany. The company was founded in 1995 and operates as one of Europe's largest integrated telecommunications providers. It offers comprehensive communication services to millions of customers across the continent.
Deutsche Telekom provides fixed-line telephony, mobile communications, internet services, and integrated IT solutions to residential and business customers throughout Europe and the United States. The company operates through various segments including T-Mobile US, which has become a major player in the American wireless market. Deutsche Telekom focuses on network expansion, digital transformation, and strategic acquisitions to maintain its competitive position in the rapidly evolving telecommunications landscape.
Deutsche Telekom financial statements
Analysts recommendation: 2.17
Financial Health
- Return on assets (ROA): 5.6%
- Return on equity (ROE): 20.3%
- Return on investment (ROI): 4.13%
Profitability
- Gross margin: 44.46%
- Operating margin: 21.31%
- Net profit margin: 9.97%
Growth
- EPS (past 5 years): 1.42%
- EPS (current): 2.47
- EPS estimate (next quarter): 2.24
- EPS growth (this year): -16.9%
- EPS growth (next year): 7.26%
- EPS growth (next 5 years): 6.96%
- EPS growth (quarter-over-quarter): -29.2%
- Sales growth (past 5 years): -0.43%
- Sales growth (quarter-over-quarter): 1.6%
💡 Why invest in Deutsche Telekom?
Deutsche Telekom offers several compelling reasons to consider investing:
- Strong Market Position: The company holds a dominant position in the European telecommunications market, providing a stable revenue base while maintaining competitive advantages and customer loyalty across key geographic markets.
- Diversified Revenue Streams: Deutsche Telekom`s operations span across fixed-line, mobile, and internet services, reducing dependency on any single market segment while providing multiple growth opportunities and revenue stability.
- Innovative Technology Solutions: The company is known for its innovative approach to telecommunications, offering cutting-edge solutions to meet evolving customer needs while investing in next-generation network infrastructure.
- Strategic Acquisition Strategy: Deutsche Telekom has a history of strategic acquisitions, expanding its market reach and enhancing its service offerings while creating synergies and operational efficiencies across business units.
🐌 Key considerations before investing in Deutsche Telekom
However, prospective investors should weigh the following challenges:
- Regulatory Compliance Risks: The telecommunications sector is heavily regulated, and changes in regulations can impact Deutsche Telekom`s operations and profitability while creating compliance costs and operational restrictions.
- Intense Competitive Pressures: The industry is highly competitive, with numerous players vying for market share, which can affect pricing and margins while pressuring customer acquisition and retention strategies.
- Consumer Spending Sensitivity: The company`s performance is tied to broader economic conditions, and downturns can impact consumer spending on telecommunications services while affecting business investment in infrastructure.
- Technological Disruption Risk: Rapid technological changes can lead to obsolescence of existing services, requiring continuous innovation and investment while creating uncertainty about future technology adoption patterns.
Final thoughts on Deutsche Telekom
Deutsche Telekom's strong market position and diversified revenue streams provide a solid foundation for telecommunications sector investors. However, regulatory risks, competitive pressures, and economic sensitivity require careful evaluation before investment. The company's commitment to innovation and strategic acquisitions positions it well for long-term growth potential.
Alma Media (HE:ALMA)
Alma Media Corporation is a leading Finnish media and digital services company that operates news media brands, digital marketplaces, and business information services across Finland and other Nordic markets, focusing on creating value through digital transformation and audience engagement. Founded in 1998 through the merger of several Finnish media companies and headquartered in Helsinki, the company has evolved from a traditional newspaper publisher into a diversified digital media and services provider that combines journalism, digital marketplaces, and data analytics. Alma Media has established itself as a prominent player in the Nordic media landscape through strategic acquisitions, digital innovation, and adaptation to changing media consumption patterns.
The company`s core operations encompass three main business segments: news media including Aamulehti and Iltalehti newspapers and digital platforms, digital marketplaces such as Etuovi real estate and Autotalli automotive platforms, and business information services that provide data and analytics solutions to corporate customers. Alma Media serves diverse audiences including news consumers, property buyers and sellers, job seekers, and business professionals through integrated digital platforms that leverage data insights and user engagement. With the continued digitalization of media consumption, growing demand for digital marketplace services, and increasing importance of data-driven business solutions, Alma Media is strategically positioned to capitalize on the transformation of traditional media while building sustainable digital revenue streams.
Alma Media financial statements
Analysts recommendation: 2.3
Financial Health
- Return on assets (ROA): 9.05%
- Return on equity (ROE): 23.91%
- Return on investment (ROI): 12.2%
Profitability
- Gross margin: 50.15%
- Operating margin: 28.5%
- Net profit margin: 16.98%
Growth
- EPS (past 5 years): 22.7%
- EPS (current): 0.65
- EPS estimate (next quarter): 0.95
- EPS growth (this year): 11.1%
- EPS growth (next year): 12.8%
- EPS growth (next 5 years): 14.6%
- EPS growth (quarter-over-quarter): 21.4%
- Sales growth (past 5 years): 16.8%
- Sales growth (quarter-over-quarter): 5.5%
💡 Why invest in Alma Media?
Like a skilled media curator who transforms traditional journalism into engaging digital experiences while building valuable marketplace connections, Alma Media demonstrates compelling strengths that make it attractive in the evolving media sector:
- Diversified Digital Portfolio: Alma Media operates across news media, digital marketplaces, and business services, creating revenue diversification while reducing dependence on traditional advertising and capturing digital growth opportuni.
- Strong Market Positions: The company maintains leading positions in Finnish news media and digital marketplaces with established brands, loyal audiences, and network effects that create competitive advantages and pricing power.
- Digital Transformation Success: Alma Media has successfully transitioned from traditional print media to digital-first operations with subscription models, marketplace revenues, and data services that provide sustainable growth and profitab.
- Nordic Market Focus: The company benefits from operating in stable, affluent Nordic markets with high digital adoption rates, strong regulatory frameworks, and consumer willingness to pay for quality content and services.
🐌 Key considerations before investing in Alma Media
However, like navigating rapidly changing media landscapes where technological disruption and competitive pressures create ongoing challenges, Alma Media faces several risks that media industry investors must carefully evaluate:
- Media Industry Disruption: Traditional media faces continued disruption from global digital platforms, changing consumer habits, and advertising migration that can pressure revenues and require continuous adaptation and investment.
- Geographic Concentration Risk: Heavy focus on Finnish and Nordic markets creates vulnerability to regional economic conditions, regulatory changes, and local competitive dynamics that could impact performance across business segments.
- Digital Competition Pressure: Online marketplaces and digital services face competition from international platforms, technology companies, and new entrants that can pressure market share and require ongoing innovation investment.
- Economic Sensitivity Exposure: Advertising revenues and marketplace activity can be sensitive to economic conditions, business confidence, and consumer spending patterns, making financial performance vulnerable to economic downturns.
Final thoughts on Alma Media
Alma Media`s diversified digital portfolio, strong market positions, digital transformation success, and Nordic market focus create compelling opportunities for investors seeking exposure to the evolution of traditional media into digital services and marketplace platforms. However, the company`s media industry disruption risks, geographic concentration, competitive pressures, and economic sensitivity require careful evaluation of the ongoing transformation challenges in media investing. Like a forward-thinking media company that bridges traditional journalism with digital innovation, Alma Media offers growth potential for investors who understand both the opportunities and challenges of the evolving Nordic digital media landscape.