Three communication service stocks posted sharp gains in Benzinga's value rankings this week, highlighting renewed investor interest in the sector. Here's what investors need to know.

GCL shares are experiencing downward pressure. Review the technical setup here.

What Does The Value Metric Mean?

Benzinga's Edge Rankings system evaluates stocks across four key factors -- momentum, growth, quality, and value. The value metric draws on traditional valuation measures such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B) ratios, comparing each company against its industry peers. A higher value score suggests a stock may be trading below its intrinsic worth.

Tracking shifts in these rankings can help investors uncover potential opportunities before they gain wider market attention. Over the past week, Benzinga's system flagged three communication service stocks that made notable moves in their value rankings: GCL Global Holdings Inc. (NYSE:GCL), Sify Technologies Inc. (NASDAQ:SIFY), and Sound Group Inc. (NASDAQ:SOGP).

GCL Global

In the ever-changing world of communication services, GCL Global made headlines this week after its Benzinga Edge Value score surged 49%, climbing from 28.35 to 42.26. The stock traded at $1.83 on Wednesday, up 4.3% for the day, but remains below its 20-day moving average -- signaling some near-term weakness.

Technical indicators paint a mixed picture. While GCL's RSI sits at 92.2, indicating overbought conditions, its MACD points to bearish momentum. The company's overall Edge score of 10.94 suggests limited strength across broader fundamentals, with its value score at 43.74. Analyst coverage on GCL remains sparse, keeping the stock somewhat under the radar for now.

Sify Technologies

Next up is Sify Technologies, which saw a 13% week-over-week increase in its value score, rising from 58.26 to 65.60. The stock traded at $12.38 on Wednesday, down 1.8%, and also sits below its 20-day moving average.

Unlike GCL, Sify's technical setup points to an oversold market, with an RSI of 21.4 and a bearish MACD reading. Its Edge score of 46.84 shows mixed fundamentals -- momentum at 97.89, value at 66.78, and growth at 22.71. Sify currently carries one Buy rating and no Sell ratings, with an average price target of $4.00, according to available analyst coverage.

Sify is set to report second quarter earnings on Saturday before the market opens. Analysts estimate a loss per share of 1 cent and revenue of $165 million.

Sound Group

Rounding out the list is Sound Group, which recorded an 8% jump in its value score, rising from 90.22 to 97.51. The stock closed Wednesday at $17.06, down 1.8%, and is trading below its 20-day moving average.

Like Sify, Sound Group's RSI of 16.4 signals oversold conditions, though its MACD indicates ongoing bearish momentum. The company's Edge score of 63.94 highlights solid fundamentals overall, with momentum at 99.61, value at 97.52, and growth at 58.64. Analyst coverage remains limited, adding an element of uncertainty -- and potential surprise -- for investors watching closely.

The Takeaway

These three communication service stocks have posted notable value-score improvements, suggesting shifting investor sentiment within the sector. While each name presents its own blend of strengths and technical challenges, GCL, Sify, and Sound Group stand out as intriguing cases where value signals are strengthening despite mixed near-term momentum.

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Price Action: At the time of writing, GCL Global stock is trading 0.57% higher at $1.77, Sify shares are trading 3.25% lower at $12.20, Sound Group shares are trading 2.82% lower at $16.89, according to data from Benzinga Pro.

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