Log in

5G Wireless Network Stocks with Upside

Posted on Saturday, June 20th, 2020 by Sean Sechler

5G Wireless Network Stocks with Upside

This year, we have seen more people than ever before using wireless networks to stay connected. Whether they are working from home, taking online classes, or simply staying entertained during stay-at-home orders, the need for high-speed networks has never been greater. This has lead to an accelerated rollout of the 5G network and has many companies ready to capitalize.

5G, or 5th Generation mobile network, is the newest update to global wireless connectivity. At this point, the existing 4G network has reached its peak in terms of speed and efficiency. The new 5G mobile network will provide faster connectivity, lower latency, and more efficient performance for digital devices worldwide. The economic implications of 5G technology are massive, as many businesses will have to update their infrastructure and products in order to switch over to the new network.

Naturally, there are several companies that are well-situated to benefit from the global shift to 5G. Here are some great 5G wireless network stocks with upside to consider buying.

Qualcomm (NASDAQ:QCOM)

There are a number of good reasons to look into Qualcomm stock, including its partnership with Apple (NASDAQ:APPL), its nice dividend yield, and its strong balance sheet. The company reported $8.4 billion in cash and cash equivalents on its books at the end of Q2 and has rewarded investors with a very solid dividend growth rate over the years. However, the most exciting thing about this stock is how key of a role it will play in the 5G revolution.

Qualcomm is a semiconductor company whose chips are used in smartphones and other networking equipment. The company is focused on finding a way for their 5G technology chips to make their way into more affordable devices and recently debuted a new chip called the Snapdragon 690. This chip should allow for companies to produce more affordable 5G smartphones and devices thanks to its lower price point. Qualcomm’s chips are already found in tons of smartphones and digital devices that operate on the 4G network, and the demand for their chips will only increase with the shift to 5G.

American Tower Corp (NYSE:AMT)

When you think about stocks that will be critical components to the success of 5G’s rollout, why not take a look at a company that owns the towers that send the wireless signals out? American Tower Corp is one of the largest tower companies in the world with over 180,000 communication sites worldwide. Each one of those towers will be very important as 5G becomes the new standard for global telecommunications. 

One of the reasons why this stock is a good buy has to do with its major tenants such as AT&T, T-Mobile, and Verizon. The company leases its towers to tenants with an initial non-cancelable term of 5 to 10 years, which means it has steady and reliable revenue streams. Another big plus with American Tower Corp is that it is structured as a REIT or Real Estate Investment Trust. That means the company is required to pay out at least 90% of its annual taxable income to qualify for special tax incentives. The company grew its common dividend in Q1 by 20%, which is certainly attractive. You can anticipate nice dividend income along with steady organic growth potential by buying AMT.

T-Mobile (NASDAQ:TMUS)

In a market where any headline can send stocks directly into volatility, a discount telecommunications company is absolutely worth a look. Since T-Mobile offers affordable phone services at cheaper prices than its competitors, the company will be able to hold their own regardless of current economic conditions.

T-Mobile recently announced a historic milestone by offering 5G services across all 50 states and seems to be moving quickly with providing its customers with access to the new network. Although it might not have the fastest 5G capabilities, the fact that this company is first in rolling out its 5G network is a testament to their ability to execute. Also, T-Mobile recently acquired Sprint, which means they have also added Sprint’s large mobile network. To quote T-Mobile’s recent earnings report, “synergies have the potential to unlock massive scale and unleash an expected $43 billion in value for shareholders”. This is a great defensive stock with leadership that is clearly focused on creating the best 5G network possible for its customers.

Strong Signals

Each of these companies provides a different business model that can put investors in a position to profit off of the rollout of this exciting new network. Keep in mind that 5G technology will forever change the way that the world stays connected, which is why adding these stocks makes so much sense.

 

 

 

Companies Mentioned in This Article

CompanyBeat the Market™ RankCurrent PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
QUALCOMM (QCOM)2.3$91.87flat2.83%27.18Hold$92.95
American Tower (AMT)2.1$264.21flat1.67%61.88Buy$261.00
T-Mobile Us (TMUS)2.1$106.01flatN/A26.05Buy$107.35

7 Stocks That Aggressive Investors Can Buy Now

There’s nothing like a steep market correction to test the risk appetite of even the most seasoned investor. With many investors seeing their 401k’s down 25%, 30% or more, it’s not surprising that many investors are taking money off the table.

And even during the most bullish market conditions, keeping some powder dry is a prudent decision.

But if you have an above-average risk appetite, then sitting on the sidelines is not your cup of tea. If you’re an investor with above-average risk tolerance, there are some opportunities to profit in this market. But you have to be looking in the right places.

At this time, the small-cap sector offers some interesting choices. Small-cap stocks are companies that have a market cap of less than $2 billion. Many of these stocks fall under the category of penny stocks, but that doesn’t make them bad. In some cases, they’re just obscure companies.

But right now, many investors will take growth wherever they can get it. And that’s why you should take a careful look at the 7 stocks we have in this presentation. The cost of entry is not high and the potential reward is worth your interest.

View the "7 Stocks That Aggressive Investors Can Buy Now".

30 Days of MarketBeat All Access for $1.00

Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools:

  • Best-in-Class Portfolio Monitoring

    View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. Compare your portfolio performance to leading indices and get personalized stock ideas based on your portfolio.

  • Stock Ideas and Recommendations

    Get daily stock ideas top-performing Wall Street analysts. Get short term trading ideas from the MarketBeat Idea Engine. View which stocks are hot on social media with MarketBeat's trending stocks report.

  • Advanced Stock Screeners and Research Tools

    Identify stocks that meet your criteria using seven unique stock screeners. See what's happening in the market right now with MarketBeat's real-time news feed. Export data to Excel for your own analysis.

Start Your Risk-Free Trial Subscription Here

Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.