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 invest in 5G stocks.
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, the 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 available in the market. We have focused on companies providing 5G infrastructure, equipment, and technology.
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 in enhancing its work in the 5G sector and make 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 the 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.
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.
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 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 mmWave 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 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.