5G stocks have emerged as new long-term players in the market. The companies that are involved in 5G technology will make huge bucks in the coming years.
And, so will the investors, who will timely go with the best 5G stocks to invest in.
National 5G networks went online in 2020, but this massive technology rollout will encompass wide swathes of the global economy for years.
The COVID-19 pandemic has heavily influenced the deployment of the 5G network.
According to a forecast by technology research firm Gartner, global spending on 5G infrastructure is on track to grow over $19 billion in value this year.
That’s almost 39% more of the $13.7 billion spent on 5G infrastructure in 2020. We can see more mobile companies featuring 5G in their latest devices now.
This is the perfect time to invest in 5G stocks for the long term. Stocks Telegraph has compiled the five best 5G stocks to invest in available in the market.
We have focused on companies providing 5G infrastructure, equipment, and technology.
What Is 5G Anyway?
If you’ve been keeping an eye on the tech world, you’ve probably heard the buzz about the best 5G stocks. But what exactly is 5G, and why is everyone talking about it?
In a nutshell, 5G is the next big leap in mobile communication technology.
It stands for “fifth generation,” and it promises lightning-fast data speeds, virtually no lag, and the ability to connect a massive number of devices simultaneously.
Think of it as a superhighway for data, enabling futuristic applications like augmented reality, smart cities, and autonomous vehicles.
But why should you care? Well, 5G is a game-changer, not only for consumers but also for investors.
It’s paving the way for exciting new opportunities in the stock market.
So, let’s dive into the best 5G stocks to invest in and ride the wave of this technological revolution! Top of Form
Why Invest In 5G?
If you’re wondering why you should dive into the world of 5G stocks, we’re here to break it down for you.
This will help set the stage for the question “What are the best 5G stocks to buy now”
The 5th generation of cellular technology, 5G, is not just a buzzword – it’s a game-changer.
Its lightning-fast speeds and enhanced connectivity are set to revolutionize industries across the board.
From healthcare and transportation to entertainment and manufacturing, 5G will open up new horizons.
As we witness this tech marvel unfold, investing in 5G stocks holds enormous potential for long-term growth.
Investing in the best 5G stocks is essentially positioning yourself for a rocketing takeoff.
5G technology promises lightning-fast internet speeds, enabling revolutionary advancements like IoT, autonomous vehicles, and more.
As demand for data explodes, companies in the 5G game are set to reap massive rewards.
With the global rollout already underway, now’s the time to jump in and commit to the best 5G stocks to invest in.
Ways To Invest In 5G
So, you’re eager to dive into the exciting world of 5G investing and latch on to the best 5G stocks to invest in?
Great choice! But before that, it is important to know how to invest in 5G stocks. Here are three smart ways to get involved:
Consider investing in companies that build the backbone of 5G networks, like telecom equipment manufacturers and tower companies.
They’re the stars laying the groundwork for faster and more reliable 5G connections.
Keep an eye on companies producing 5G-enabled devices, such as smartphones, tablets, and IoT gadgets.
As the demand for 5G-compatible gadgets rises, so will the potential for these companies to grow.
Don’t forget about the carriers themselves. Major telecom companies providing 5G services are poised to benefit from the widespread adoption of this technology, making them solid long-term investment candidates.
Top Companies Involved In 5G
Alright, fellow investors, now that we told you how to invest in 5G stocks, let’s get to the juicy part!
In this section, we’ll be uncovering the best 5G stocks to invest in, that are poised to ride the wave of technological revolution and deliver long-term growth for your portfolios.
So, fasten your seatbelts as we show you what are the best 5G stocks to buy now.
Qualcomm (QCOM) is one of the leading companies in 5G technology.
The company has a product portfolio including chips that enable 5G technology in everything.
From the Internet of Things devices to devices that comprise smartphones, cars, and modems, and other networks.
It has profited from the smartphone boom since the early 2000s, focusing on the tech behind 3G and then 4G mobile networks.
QCOM is working on enhancing its work in the 5G sector and making a significant difference in the market.
Qualcomm’s recent growth of 114% in radio frequency during the latest quarter was driven by 5G deployments and millimeter-wave rollouts.
Both of those growth trends will accelerate in 2022.
The diversification of products in the 5G technology will help Qualcomm in expansion.
The company has ample cash on its balance sheet to drive further innovation in hardware.
While another significant factor for an investor is that Qualcomm has consistently paid a dividend for nearly two decades.
QCOM reported solid fourth-quarter fiscal 2021 results with record non-GAAP earnings and revenues.
Fourth-quarter outcomes were driven by the ramp-up in 5G-enabled chips.
The increasing demand for other essential products and services also played a vital role.
With the U.S. government focused on expanding national broadband access to Americans, QCOM has a greater opportunity to grow in the next few years.
QCOM stock looks promising with all the fundamentals covered and a strong balance sheet. It is a great pick among the best 5G stocks to invest in.
Broadcom (AVGO) provides semiconductor infrastructure software solutions and is one of the leading 5G companies.
With its proven track record of investing in and growing core franchises, Broadcom is committed to making the U.S. the global leader in 5G.
AVGO is a strong contender among the best 5G stocks to invest in as it has a proven track record of managing R&D for maximum impact and investing in core franchises.
The R&D investment in the 5G technology is to innovate and enhance the future of the wireless network.
Broadcom wants to provide the best version of the wireless network to the end user. The company also targets large multinational customers.
Broadcom provides a comprehensive portfolio of industry-leading solutions and generates sustainable revenue.
That’s a great plus as the company is working on every aspect of the business.
To drive sustainability and growth in revenue, AVGO is highly focused on strategic customers leveraging multiple solutions.
5G is among one of them for the future. With that being said, Broadcom has a complementary product portfolio.
That operates across infrastructure and security software serving 80% of the Fortune 500.
AVGO stock is full of potential and has a strong balance sheet.
The total revenue in the trailing 12-month period has already crossed $23,888 million recorded in 2020.
While Broadcom ended 2020 with $7,618 million in cash and cash equivalents compared to $5,055 million in 2019.
Overall, AVGO stock is well supported by Broadcom’s strong business progress and growth.
Goldman has upgraded the stock rating from neutral to buy with a target price of $589.
Analog Devices Inc.
Analog Devices (ADI) is known for making integrated circuits, also known as ICs.
ADI has contributed significantly to the 5G technology and continues to work on it.
It has previously contributed to the advancement of communication for 2G, 3G, and 4G networks.
Analog has unique system-level expertise, deep domain knowledge, and market insight on the 5G technology.
ADI is firmly positioned to help businesses unlock 5G’s full potential.
The company’s prime focus is to help customers navigate the complexity of the 5G transformation.
With industry-leading domain expertise, ADI helps customers design complex radio architectures for 5G full-spectrum systems.
Through 5G, ADI also integrates unprecedented high performance with low power, security, and smart algorithms.
ADI stock is well supported by Analog’s progress in 5G. Moreover, the chipmaker also resides on its other products and services in the industry.
That makes it one of the best 5G stocks.
5G technology is yet to spread across the masses. It’s still in the testing phases.
ADI is working on a complex angle of 5G, which gives a bit of a competitive advantage to the company.
ADI has recorded $6,505.01 million in revenues during the trailing 12-month period. That’s more than $5,603.06 million in the full-year 2020.
The gross margin is almost 68% and the profit margin is just over 26%.
ADI stock is trading around its 52-week high. There’s a lot of bullish sentiment at the moment.
But if you want to invest in the long-term, you wait for the stock price to be around major support levels.
Corning (GLW) is a legacy glass and ceramics manufacturer. The company is known for its fiber-optic services.
Before 5G gets turned into a high-speed Wi-Fi signal, the data needs to travel along the wired portion of the internet just like other electronic data.
That’s where Corning comes to the 5G scene.
It provides high-speed cable services to many companies that are providing internet services, including 5G.
Moreover, GLW is also getting into the small-cell antenna space, which is a core component of 5G systems.
In collaboration with Qualcomm, Corning is developing 5G mm Wave infrastructure systems for enterprises and public venues.
So far in 2021, the company has generated double-digit, year-over-year revenue growth across all its major segments.
Corning has recorded total revenue of $13,756 million in the trailing 12-month period.
With strong performance this year, GLW continues to improve its income statement and balance sheet.
GLW stock is a solid investment, boosted by its long history of paying dividends. Corning Inc has an average price target of $44.54.
Ericsson (ERIC) is a telecommunications equipment and services company.
ERIC mainly offers services, software, and infrastructure in information communication technologies.
The company owns around a 27% market share in 3G and 4G mobile network infrastructures.
It’s no surprise that Ericsson is heavily invested in the 5G revolution.
By Feb 2020, the company had already signed 81 deals with various telecom providers, for providing services in 5G.
Ericsson is considered one of the most promising 5G providers. ERIC is the first company to deploy 5G networks across four continents.
With that being said, the company claims that it supports the largest range of supported devices for 5G connections.
Recently, Ericsson announced Rogers Communications as the first North American service provider to join its global Start-up 5G program.
Rogers will commercialize 5G use cases for Ericsson. Ericsson’s Start-up 5G program is designed to help communications service providers.
The core idea is to accelerate the successful commercialization and monetization of 5G to the right consumer innovation partners.
With the rise in 5G demand, more companies are adopting the technology.
Ericsson has recently signed contracts with telecoms giants including Verizon, AT&T, and T-Mobile.
The company has strong fundamentals and is a profitable company.
ERIC stock is trading around its 52-week lows. That puts it in a good upside heading into 2022.
Most of the 5G stocks are trading higher these days due to an earlier push in the market, following high 5G demand.
The key to holding a stock for the long term is to buy it at around major support levels.
CommScope (NASDAQ: COMM) is a strong pick for investors seeking the best 5G stocks due to its favorable market position and potential for growth.
With a focus on its Connectivity and Cable operating segment (CCS) and a $1.1 billion order backlog, the company is well-positioned to benefit from global 5G expansion and fiber broadband connectivity demand.
Although facing some challenges, CommScope’s reach, Mosaic base station solution, and ability to capitalize on the convergence of industrial Wi-Fi and cellular data provide a solid foundation for long-term growth in the 5G space.
Clearfield (NASDAQ: CLFD) is a promising 5G stock pick for long-term growth.
With a strong foothold in the U.S. telecommunications market and expanding into Europe, it’s well-positioned to benefit from the growing FTTH market and 5G trends.
Despite some risks like client concentration and manufacturing cost increases, the company appears undervalued.
The solid balance sheet and potential for further headcount growth make it an intriguing investment opportunity.
As Clearfield integrates its European acquisition and taps into 5G growth, it could see significant net sales growth and increased FCF margin, making it worth considering for investors.
Verizon (NYSE: VZ) is a solid pick for long-term growth due to its targeted 5G approach, dominating major cities, and providing blazing-fast 5G to most of the population.
Its fastest-in-the-nation 5G home internet at just $25/mo attracts customers, boosting market share.
Despite risks like debt, Verizon maintains strong profitability and a reliable dividend.
With potential price increases and inflationary tailwinds, Verizon’s estimated 15.5% annual returns make it a strong buy
FingerMotion (NASDAQ: FNGR) stands out for its exposure to the booming big data analytics market and strong partnerships with telecom giants in China.
With innovative products like Sapientus and a focus on expanding its 5G ecosystem, the company is set for double-digit sales growth.
While a conservative valuation indicates $4.5 per share, systematic risks like operating in China and lack of PCAOB oversight must be considered.
Overall, FingerMotion shows promise for long-term growth, making it a compelling pick among 5G stocks.
JBG SMITH Properties
JBG SMITH Properties (NYSE: JBGS) is a solid pick for long-term growth. They’re all-in on 5G digital infrastructure and have strong ties with Amazon.
The recent sale of assets to Amazon and new projects in the pipeline add to its potential.
Their innovative approach and clientele, including the U.S. Government, make them stand out. With a solid balance sheet, JBGS appears undervalued.
Despite risks, their unique position and growth prospects make them a must-follow stock for investors eyeing the 5G wave.
Franklin Wireless (NASDAQ: FKWL) is a promising 5G stock pick.
Despite a previous stock price drop due to a Verizon recall, it’s showing signs of recovery with a 400% revenue increase in Q4 2022.
The company’s 5G solutions, including partnerships with carriers like AT&T and T-Mobile, position it well in the growing 5G industry, which is projected to be worth $2.2 trillion by 2030.
NetScout Systems (NASDAQ: NTCT) is a strong pick for investors eyeing the best 5G stocks.
They’re well-positioned to benefit from the digital transformation happening in various sectors, especially with the emergence of 5G networks.
Their focus on digital security systems and potential growth in revenue from the US market, along with reduced debt, new products, and AI applications, make them an appealing long-term investment choice.
So, if you’re looking for 5G growth potential, keep an eye on NetScout!
T-Mobile (NASDAQ: TMUS) is a top pick for 5G investors due to its leading position in the US 5G race, strong Q3 2022 results, and robust growth in net customer additions and high-speed internet segment.
With a focus on value leadership and network excellence, T-Mobile continues to excel in the competitive market.
It’s also driving innovation with the Magenta MAX plan and simplifying customer switching.
Despite potential risks, its fair valuation, growth prospects, and 5G advantage make T-Mobile an appealing long-term investment choice for those seeking the best 5G stocks.
Ceragon Networks (NASDAQ: CRNT) is a promising 5G stock pick.
Operating in the growing 5G industry, it serves international clients with Wi-fi and fiber optics products.
Their just-in-time manufacturing strategy and recent client announcements add to the appeal.
While risks exist from changing regulations and competition, we believe the undervalued price presents an opportunity.
With market expectations of positive net income and a stable balance sheet, Ceragon’s potential for growth and partnerships in the 5G space make it an attractive long-term investment for savvy investors.
AT&T Inc. (NYSE: T) is a top pick for long-term growth in the 5G market.
With a focus on shedding media segments and investing in 5G edge computing, the company aims to conquer the automotive industry.
A partnership with GM and Microsoft to bring 5G connectivity to vehicles and plans for 1M EV production annually by 2025 show its potential.
The global EV market’s rapid growth and attractive valuation make T a compelling buy for investors with higher risk tolerance and a long-term horizon.
Cambium Networks (NASDAQ: CMBM) has solid long-term potential in the 5G space. They provide network infrastructure solutions for ISPs, enterprises, and governments.
With the US population getting more 5G coverage, demand for their services will increase.
Their enterprise segment is already performing well, boosting gross margins.
While their PMP segment faces a decline due to delayed 5G investments, future growth is expected.
Considering the substantial demand for 5G infrastructure in the mid-market and the company’s potential in the EMEA region, Cambium has room for plenty of growth.
A10 Networks (NYSE: ATEN) is a top pick for long-term growth due to its position in cybersecurity and the 5G industry.
With increasing internet users, IoT devices, and cloud apps, cybercrime is soaring.
A10 addresses this with its Thunder ADC load balancer, NAT service, and 5G security solutions.
Strong Q2 results, revenue growth, and a solid balance sheet boost confidence. Don’t miss the potential of this cybersecurity gem!
DigitalBridge Group (NYSE: DBRG) is a top pick for 5G investors seeking long-term growth.
This company’s aggressive acquisitions have made it a key player in the digital infrastructure industry, powering the 5G, Data Centers, and Edge Computing sectors.
With strong financials and backing from legendary investor Seth Klarman, DBRG offers a “toll road” position in the fast-growing digital world.
Valued below competitors, it’s poised for significant expansion, making it an attractive option for those eyeing the promising future of 5G stocks.
RADCOM Ltd. (NASDAQ: RDCM) is a promising 5G stock.
With recent strong financial results, high-profile customer wins and raised revenue guidance, it shows potential in the growing telecom service assurance market.
Though there are some risks, its discounted valuation compared to SaaS peers and positive outlook make it a buy at around $11.60 per share.
Keep an eye on this company with a small market cap, as it could rise quickly with major relationship wins.
Infinera Corporation (NASDAQ: INFN) is a solid pick for investors eyeing the best 5G stocks.
With rising 5G adoption and smartphones’ influence, the demand for its networking technologies is set to soar.
Notably, their 5-year bandwidth growth projection is around 35%, indicating potential sales expansion.
Moreover, expectations of 5%-9% sales growth and growing EBITDA margin suggest strong performance.
The company’s in-house manufacturing capabilities offer a competitive edge, and ample cash on hand for capital expenditures signals a bright future.
Risks of Investing in 5G
Alright, folks, before we dive into the exciting world of 5G stocks, let’s talk about the risks.
Every investment opportunity comes with its fair share of challenges, and 5G stocks are no exception.
So, let’s take a quick look at five key risks you should be aware of:
The tech world can be like a rollercoaster ride, and even the best 5G stocks to invest in are no different.
Market fluctuations and sudden shifts in investor sentiment can particularly impact tech stock prices, leading to short-term ups and downs due to beta.
While 5G promises incredible growth, it also faces regulatory challenges.
Changes in government policies or international disputes could affect the deployment and expansion of 5G infrastructure, impacting even the very best 5G stocks.
The 5G space is bustling with competition, and it’s getting fiercer by the day.
As more companies race to gain a slice of the 5G pie, some might struggle to keep up, affecting their prospects.
This is why one must pick the very best 5G companies to invest in.
Building and maintaining 5G infrastructure demands substantial investments.
Companies with heavy debt loads or cash flow issues may find it difficult to keep up with the pace, potentially hindering their long-term growth prospects.
As technology evolves, there’s always a risk that newer and more advanced technologies might emerge, potentially making certain 5G investments less attractive in the long run.
AI stocks seem to be a distant threat to the idea of 5G too.
What Industries Will Be Impacted?
Alright, let’s dive into “What Industries Will Be Impacted?” by the 5G revolution! Brace yourselves, investors, because the impact is going to be massive.
This one’s a no-brainer. 5G is a game-changer for the telecom industry.
With faster speeds, reduced latency, and increased connectivity, telecom companies will see a surge in demand for data and innovative services.
The race to provide the best 5G network will reshape the telecom industry’s landscape.
Internet of Things (IoT)
Get ready to witness the rise of smart devices like never before. 5G’s low latency and high capacity are tailor-made for IoT applications.
From smart homes to connected cars and industrial automation, IoT will flourish, opening up new opportunities for companies specializing in this space.
Hold on tight, healthcare investors! 5G will revolutionize the medical and biotech sector.
With its ability to support real-time remote surgeries, telemedicine, and wearables transmitting vital data, patient care and accessibility will reach unprecedented heights.
Expect healthcare companies to embrace 5G to improve efficiency and patient outcomes.
Gaming and Entertainment
Gamers, rejoice! 5G is about to level up your gaming experience.
Its lightning-fast speeds will enable cloud gaming and seamless online multiplayer, while augmented reality (AR) and virtual reality (VR) content will become more immersive and widely accessible.
Companies tapping into this lucrative arena will thrive.
Buckle up, because the future of transportation is autonomous and 5G-enabled.
Self-driving cars will rely on real-time data and ultra-fast communication to navigate efficiently and safely.
As 5G infrastructure expands, automotive companies investing in this technology will drive innovation and disruption in the industry.
Investing in 5G, by Sector
Let’s dive into the exciting world of 5G investment opportunities! Here’s a rundown of some key sectors to consider when seeking out the best 5G stocks to invest in:
Real Estate Investment Trusts (REITs)
If you’re all about that passive income game, REITs are worth checking out.
They’re essentially the landlords of the 5G world, owning the infrastructure that enables faster connectivity.
Think cell towers and data centers – as 5G expands, so does the potential for steady, long-term growth.
We have all heard the old saying that we must possess the correct tools for the job. Well, in the 5G world, hardware is the toolkit.
Companies involved in making 5G-compatible devices – like smartphones, IoT devices, and network equipment – have a chance to ride the wave of surging demand.
The best 5G stocks to invest in are those that would come with innovative technologies and strong partnerships to keep ahead of the pack.
Service Providers and Consumer Tech
Now, we all know that 5G is nothing without the service providers making it accessible to the masses.
Consider investing in those telecom giants with a solid 5G plan and a wide customer base, as these would make up the bulk of the best 5G stocks to invest in.
Plus, keep an eye on consumer tech companies, as they’re likely to come up with creative ways to leverage 5G in their products and services.
Satellite and Space Exploration
Space – the final frontier of 5G! While traditional telecom infrastructure has its limits, satellite technology is here to extend 5G’s reach to the most remote corners of the globe.
Companies involved in satellite communications and space exploration are poised to play a crucial role in the 5G revolution, making them intriguing options for long-term investors with a cosmic vision.
Trading vs Investing in 5G
Time to discuss the difference between trading and investing in 5G stocks.
This distinction is especially crucial to understand if you want to make the most out of the best 5G stocks to invest in.
Trading is having a more short-term orientation – it involves buying and selling stocks frequently, aiming to profit from short-term price fluctuations.
It requires constant monitoring and quick decision-making.
On the other hand, investing in 5G is more like a steady commitment.
You buy and hold onto promising stocks for the long haul, betting on the overall growth of the 5G industry over time.
While trading can be exciting, it’s also riskier and demands expertise. Investing is about playing the long game, taking advantage of the technology’s transformative potential.
So, consider your goals and risk tolerance. If you’re up for the thrill, try trading.
But for a more relaxed approach with the potential for significant gains, going with the best 5G companies to invest in might be your best bet.
The 5G revolution is upon us, and the opportunities for long-term growth in the stock market are truly electric.
This is why so many are flocking toward what they feel are the best 5G stocks to invest in.
As we journeyed through the core concepts of 5G technology and its potential impact on various industries, we also explored five fantastic 5G stocks that stand tall in the race for growth.
Remember, investing is all about seizing opportunities and staying ahead of the curve.
While each stock comes with its own risks, the potential rewards are equally enticing.
So, keep a keen eye on the best 5G companies to invest in, that we discussed above.
Is It Too Late to Be Investing in G5?
It’s not too late to invest in 5G; the technology’s growth potential remains strong, and there are still opportunities for long-term investors who are seeking out the best 5G stocks to invest in.
Why Does 5G Create a Different Opportunity for Investors?
5G creates a different opportunity for investors due to its transformative impact on various industries, enabling faster data speeds, improved connectivity, and unlocking new possibilities for businesses and consumers alike.