5g stocks canada

5g stocks canada DEFAULT

3 Top Canadian 5G Stocks

This post was written by Harvi Sadhra, the CEO & Founder of Hashtag Investing. Hashtag Investing is the highest quality online community for stock investors looking to learn and share stock investing ideas and strategies. With over 5,000+ global investors, Hashtag Investing is a great resource for investors of all experience levels to partake in daily discussions. 

Since 5G technology first made landfall in 2018, courtesy of Verizon Communications, major economies have been trying to commercialize the technology to boost its digital infrastructure and connectivity. Canada has been one of the leading players in the battle for dominance, marking the commercial rollout of the technology in mid-2020.

The Huawei Technologies controversy slowed down the country’s 5G launch date, as Canada banned exports from the biggest 5G equipment manufacturer over national security concerns. However, re-established ties with European equipment manufacturers and domestic companies rising to the occasion has allowed Canada to join the 5G gang amid a global pandemic.

Some of the biggest Canadian companies expected to benefit from nationwide commercialization of 5G are:

BCE, Inc. (TSX: BCE)

BCE’s subsidiary Bell Canada Enterprises is one of the largest telecom and wireless operators in Canada, with a market capitalization value of C$50.4 billion. The company launched its largest ever network plan in June 2020, providing 5G coverage across Montreal, Edmonton, GTA, Vancouver and Calgary. The company has partnered up with Swedish telecommunications equipment provider Ericsson to expand its connectivity to interior Canada through Ericsson Radio Access Network technology.

BCE plans to spend an additional C$1 billion to fuel its 5G segment over the next two years, as reported last month. The company announced its target of installing over 900,000 fiber and rural wireless home internet connections. Bay Street estimates this project to add upward of $2 billion to the country’s GDP, owing to the rising demand for remote working jobs.

BCE’s ambitious plans are backed by sturdy financials and cash flows, making the company well-positioned to dominate the Canadian 5G space in the long run. It generated $6.1 billion as net operating cash flow over the past year, with a cash balance of $176 million at the end of the trailing 12-month period. The company has generated $17.89 billion in revenues in the last year, while its bottom line was $2.07 billion over this period. Furthermore, its quarterly EPS has risen 29.7% year-over-year, equating to a trailing 12-month EPS of $2.17.

With a trailing 12-month gross profit margin and dividend yield of 41.8% and 5.7%, respectively, BCE is one of the most coveted stocks among growth and income investors alike. The company’s past price performance indicates modest gains and steep declines over the past couple of months, accruing from the pandemic disruption. However, BCE is currently trading above its 50-day and 200-day moving averages, indicating a golden cross uptrend. As such, both technical analysts and fundamental analysts expect the stock to take off soon, making it a potential market mover in the 5G industry as well a potential recession-proof stock for Canadians.

Rogers Communications, Inc. (TSX: RCI)

Rogers Communications Inc. is a leading contender in the 5G race, providing neck-to-neck competition to BCE. It has been labelled the ‘best in test’ operator in Canada by umlaut. The company’s superior mobile network testing and benchmarking abilities have allowed it to earn this label for two years in a row.

The company is known for its attractive dividend yields, making it a popular choice among dividend investors craving a solid cash flow investment amid historically low benchmark interest rates. However, the company has been taking active steps to solidify its foothold in the next generation tech connectivity space, driven by strategic partnerships and extensive government support.

RCI’s ties with Ericsson were established in December last year, following which the former has started deploying the 5G standalone core network across the country. As of December 26, 2020, RCI has expanded its 5G connectivity solutions across the 160 communities in the country. Moreover, the company partnered with Qualcomm Technologies, Inc. to develop the next generation 5G smartphones.

The company’s top line of $10.9 billion over the past year indicates a slight decline year-over-year. The lower sales volume can be attributed to the pandemic-induced supply chain disruptions. Moreover, the company’s extensive stake and capital investments in the stock offset its recurring revenues. However, the company’s EBITDA has increased marginally at a CAGR of 0.8% over the past three years, while its levered free cash flow has increased at a CAGR of 181.8% over this period.

RCI has maintained its profitability rates over the past year, despite the slump in its revenues. It has a trailing 12-month of gross profit margin of 42.1%, while trailing 12-month EBITDA and net income margins stand at 40.4%, and 11.4% over this period. RCI’s shares have a trailing 12-month return on equity of 16.8%.

The company is expected to maintain this trajectory throughout 2021, as it continues to expand its 5G portfolio through hefty investments. While the next generation technology is unlikely to gain traction before the second half of the year, its long-term return on investment is surmounting.

Sierra Wireless, Inc. (TSX: SW)

SW is a domestic wireless communications equipment manufacturer with a global market presence. With the rising demand of necessary equipment across the world, SW is at the forefront of the 5G race. The company has an assortment of products and software services catering to commercialization of 5G, namely router modules and IoT services.

With the chip manufacturing industry currently driving the 5G deployment, SW’s shares nearly doubled in value over the past year, as well as registered 7.3% gains year-to-date. Along with broader market enthusiasm, the stock’s fundamentals played a pivotal role in fueling its growth momentum. SW generated $448.6 million in revenues over the past year, resulting in trailing 12-month gross profit of $158.8 million.

While the company’s annual net income is negative, its strong cash flows and liquidity position makes a strong case for the stock. The company’s levered free cash flow has risen at a CAGR of 862% over the past three years. SW’s capital management is impressive as its trailing 12-month total cash balance is 9.4 times its total debt.

Conclusion

Based on the rate of adoption of 5G technology across the country, these three companies are expected to lead the next generation technology revolution, given their extensive market reach and fundamental strength. Currently limited by severe macroeconomic headwinds, these companies are expected to rally as the COVID threat subsides.

Best Stocks October

5 Best Stocks to Buy in October

Get Your FREE REPORT

Find out which stocks you should buy this month to make money in this changing market.

Related Posts

Tags

5G technology, capital investments, dividend, dividend investors, dividend yield, financials, growth and income, Income Investors, investing, investing ideas, investment, investments, investors, IoT, LOW, return on investment, share, shares, Some, stock, stock investing, stock investors, stocks, trading, volume, yield.

Sours: https://cabotwealth.com/daily/growth-stocks/3-top-canadian-5g-stocks/

Morgan Stanley technology analyst Katy Huberty is unambiguously bullish on stocks involved in the next generation of broadband technology, opening a recent research report with the blunt statement: ”We are buyers of stocks exposed to stronger than expected consumer 5G demand.”

Morgan Stanley’s confidence arises from a survey of U.S. and Chinese consumers that uncovered the highest levels of demand for new smartphones in years. Apple Inc. has already released 5G compatible iPhones and has begun revising sales expectations higher.

U.S. telecommunication providers are also indicating strong early demand for the new iPhones. Ms. Huberty points to aggressive subsidies from telecom providers – offering new iPhones to consumers at lower prices – as another reason to expect 5G phone sales to exceed current expectations.

Story continues below advertisement

Ms. Huberty’s 65-page report is long but includes a surprisingly concise list of 10 stock picks. Apple is among the three U.S. companies expected to benefit from the trend, along with T-Mobile U.S. Inc. and Qualcomm Inc.

Other names include Taiwan-based Delta Electronics and Taiwan Semiconductor Manufacturing Co. Ltd, and Samsung Electronics Co. Ltd. of Seoul, South Korea. Morgan Stanley’s picks from the Hong Kong market are Sunny Optical Technology Group Co. Ltd. and China Mobile. Japan’s Murata Manufacturing Co. Ltd and Sweden’s Ericsson round out the list.

The novelty of lugging a smartphone around everywhere wore off a long time ago for me so I wasn’t expecting the sector to become a hotbed of investor interest and capital. Ms. Huberty’s argument is nonetheless compelling – I was reminded of the move to high definition televisions - and the new upgrade cycle could very well prove to be a lucrative one for investors.

-- Scott Barlow, Globe and Mail market strategist

This is the Globe Investor newsletter, published three times each week. If someone has forwarded this e-mail newsletter to you or you’re reading this on the web, you can sign up for the newsletter and others on our newsletter signup page.

Stocks to ponder

Ayr Strategies Inc. (AYR-A-CN) Ayr Strategies is a vertically-integrated cannabis multi-state operator with established operations in Massachusetts and Nevada and expansion plans in three other U.S. states. The share price this week closed at a record high on high volume. And the average one-year target price implies a potential 41 per cent return - on top of its 121 per cent year-to-date gain. Jennifer Dowty has this profile of the stock. (for subscribers)

Story continues below advertisement

Converge Technology Solutions Corp. (CTS-X) Shares hit a record high Wednesday amid a hot technology takeover market and as the company amasses its own acquisition war chest. Converge, which provides cloud, cybersecurity and other tech services, has seen its shares double in the past three months and surge 220 per cent over the past year. The company, which is readying to graduate to the Toronto Stock Exchange, recently closed an upsized $46.2-million financing, which it said would be used for largely for acquisitions. Brenda Bouw tells us more about the stock. (for subscribers)

The Rundown

Seeking underperforming TSX stocks that may be due for a reversal

Bargain hunters enjoyed some big gains as their once bedraggled stocks shot higher. While the price surge is great for shareholders, it’s bad for buyers because it makes bottom fishing more difficult this tax-loss selling season. But serious bargain hunters take a longer view of things. They tend to seek out firms that might be due for a reversal after having disappointed investors for many years. Norman Rothery looks at some potential long-term reversal bargains. (for subscribers)

Commodity prices are moving up. Is this the start of a supercycle?

Copper, soybeans, wheat and gold have enjoyed spectacular run-ups this year, reigniting interest in commodities as the global economy recovers from the pandemic. More than a snapback, the gains are raising the question of whether a commodities supercycle is now in the works. David Berman tells us more. (for subscribers)

Story continues below advertisement

Does it make sense to use preferred shares as a bond substitute?

Intolerably low interest rates are causing a major rethink of diversification at the individual investor level. And that includes subbing preferred shares for bonds. But is it really a wise investment strategy? Rob Carrick shares his thoughts - and so did a lot of readers in our comments. (for subscribers)

A balanced fund ETF that’s proven its worth

The ETF industry has suddenly fallen in love with balanced funds. For years there were only a few available. Now it seems like there is a new one announced every week. Some of the newbies look good on paper. But there is no history to tell us how they will perform against their peers over time. There are a few exceptions, however. This is one that Gordon Pape recommends. (for subscribers)

In a period of historically low rates, these two dividend-paying energy stocks are worth the risk

In these days of historically low interest rates, how does a stock that yields 7.4 per cent sound to you? Or how about one with a yield of 8.2 per cent? You can buy either or both right now. Both have investment-grade ratings from two bond rating agencies. Both insist the dividend is secure and will not be cut. What’s the catch? The two companies are in the beaten-down energy sector. Are they worth a shot, in light of their attractive yields? Gordon Pape thinks they are, if you are willing to accept the risk that comes with them. Here are Gordon’s two picks. (for subscribers)

Story continues below advertisement

Strong earnings recovery bodes well for stocks next year

The third quarter may go down as the most triumphant earnings decline in corporate history. With earnings season basically wrapped up – but for the notable exception of Canada’s big banks – total profits are on track for a dip of less than 10 per cent in both Canada and the United States, compared with the same quarter last year. And all else being equal, a substantial upward revision of earnings from existing forecasts is exceptionally bullish for stock prices. Tim Shufelt reports. (for subscribers)

Also see:Hedge funds trim bets against Canadian retailers as e-commerce boom eases sector’s gloom

These are the two sectors to watch the most as value stocks make a comeback

The past three months have seen value stocks outperforming growth stocks by the biggest margin in 10 years, a strong indicator that big changes in market leadership are already under way. A closer look at the U.S. stocks driving the Russell 1000 Value Index higher uncovers two sector-based investment trends, one likely more sustainable than the other. Scott Barlow tells us more. (for subscribers)

Cloud computing ETFs are surging, but should investors bet on the niche play long term?

Story continues below advertisement

Cloud computing ETFs have benefitted from the historic shift to working-from-home and distance learning brought about by the COVID-19 pandemic, though some providers expect the surge to continue long after the global health crisis ends. For those feeling bullish on the sector, Canada will soon have its first ETF dedicated to the sector. Jameson Berkow reports. (for everyone)

Others (for subscribers)

John Heinzl’s model dividend growth portfolio as of Nov. 30, 2020

Wednesday’s analyst upgrades and downgrades

Wednesday’s Insider Report: Director invests $2.9-million in this oversold stock

Tuesday’s analyst upgrades and downgrades

Story continues below advertisement

Tuesday’s Insider Report: Director invests over US$7-million in this Canadian large-cap dividend stock

Number Cruncher: Nine companies creating shareholder wealth

More investing ideas from the pros (for subscribers)

Recovery to be erratic, Emerging stocks to rise in 2021: Invesco

Axon Capital’s Singh sees vaccine boosting travel, entertainment stocks

Cybersecurity, pharma coordination are big post-pandemic structural themes: LGIM

Globe Advisor

China’s ESG ratings tarnish its allure for sustainable investors

Are you a financial advisor? Register for Globe Advisor (www.globeadvisor.com) for free daily and weekly newsletters, in-depth industry coverage and analysis, and access to ProStation - a powerful tool to help you manage your clients’’ portfolios.

Ask Globe Investor

Question: I opened a RRIF this year, but I have not put any money in it. I will be 69 next year. I do not need the money. Because I opened the account, do I have to move all of my RRSP, some, or none into it? – Mike M.

Answer: Why would you bother to open a RRIF if you did not intend to contribute to it? You are not required to do so until the end of the year in which you turn 71. In your case, that would be 2023.

However, now that you have the RRIF you should do something constructive with it. If you are not drawing income from a pension plan and you are at least age 65, you can claim the 15 per cent pension income tax credit for the first $2,000 you withdraw from the RRIF each year. That’s $300 a year off your tax bill. Your provincial tax credit will add to that.

That means you have to transfer enough money from your RRSP to the RRIF to generate a withdrawal of $2,000 a year. You will be 68 on Jan. 1, 2021. The minimum withdrawal at that age is 4.55 per cent. If you want to stick with the minimum, you’ll need to move about $44,300 into the RRIF. Of course, you could move less than that and take more than the minimum withdrawal to reach $2,000.

If you take action before Jan. 1, you’ll be able to claim the credit on this year’s tax return.

Note that this does not mean the $2,000 is tax free. That would only apply if you are in the lowest tax bracket. But the tax you pay will be much lower.

And yes, it is ok to have both an RRSP and a RRIF at the same time.

--Gordon Pape

What’s up in the days ahead

Stocks related to green power are surging. LIT, the Global X ETF that tracks battery & lithium stocks, was up nearly 20 per cent in November, while TAN, the Invesco solar energy ETF, shot up a similar amount. Can the rally last? Ian McGugan will share his thoughts.

Click here to see the Globe Investor earnings and economic news calendar.

More Globe Investor coverage

For more Globe Investor stories, follow us on Twitter @globeinvestor

You may also be interested in our Market Update or Carrick on Money newsletters. Explore them on our newsletter signup page.

Compiled by Globe Investor Staff

Sours: https://www.theglobeandmail.com/investing/investment-ideas/article-10-stocks-to-buy-for-an-expected-surge-in-5g-consumer-demand-plus/
  1. Oseas 14 4
  2. Plastic barn toy
  3. Rose gacha
  4. Sasuke animated
Businessman using calculator next to laptop

Written by Christopher Liew, CFA at The Motley Fool Canada

Three companies are dominant forces in Canada’s telecom industry. Their combined market share is more than 90%. BCE(TSX:BCE)(NYSE:BCE) is the largest, followed by TELUS(TSX:T)(NYSE:TU). Rogers Communications is third, although it could become the second-largest if it obtains approval to acquire Shaw Communications.

Canada is at the doorstep of the next generation of the digital technologies era. The rollout of the 5G network is most beneficial for developed economies. There’s a critical need to upgrade infrastructure and services from 4G to 5G. The upgrade should result in faster data rates.

According to GSMA Intelligence, 5G should deliver US$150 billion in additional value add to Canada’s gross domestic product (GDP). Thus, the race to become the top 5G stock has begun. Since the Rogers-Shaw deal is still up in the air, I’d limit the choices between BCE and TELUS.

5G investments

BCE is bigger than TELUS in terms of market capitalization, $59.79 billion versus $40.04 billion. The telecom giant announced in early February 2021 an additional spending of between $1 billion and $1.2 billion over the next two years. It will enable BCE to double the size of its next-generation 5G network.

BNN Bloomberg, BCE’s media asset, reports that TELUS increased its 2021 capital budget to $3.5 billion. Telus CEO Darren Entwistle said 90% of the accelerated spending plan will be for fiber optic networks, business processes improvements, and 5G wireless networks.

The infrastructure buildouts by the top two telcos will contribute billions to the domestic economy. For BCE, it would create around 5,300 direct and indirect jobs. On the other hand, TELUS projects its 5G expansion to create 38,000 jobs across the country.

Key 5G partnerships

In July 2021, BCE announced a strategic partnership with Alphabet’s Google Cloud. According to BCE, the multi-year partnership will power Bell’s company-wide digital transformation, enhance its network and IT infrastructure. The company will also leverage Google Cloud’s AI and big data expertise to gain unique insights through real-time network data analytics.

Apart from the 5G infrastructure buildout, TELUS aims to redefine automotive connectivity. The telco will work together with General Motors Canada to connect the latter’s next-generation vehicles to the former’s 5G network. Moreover, the collaboration is in preparation for the all-electric and autonomous vehicle future.

Perhaps more than the 5G rollout, your choice would depend on the overall makeup of BCE and TELUS. Look at the accompanying businesses apart from the core telecommunications services. BCE has Bell Wireline, Bell Wireless, and Bell Media. Some analysts say BCE’s media assets give it a distinct advantage. Others contend that TELUS may lack media assets, but it has growth catalysts in TELUS International, TELUS Health, and TELUS Agriculture.

Pure play dividend stocks

BCE trades higher ($66.02) than TELUS ($29.42) but pays higher dividends (5.3% versus 4.33%). Also, the larger telco hasn’t missed a dividend payment since 1881. TELUS isn’t inferior regarding dividend track records. Canada’s second-largest telco has earned Dividend Aristocrat status because it raised dividends for 18 consecutive years.

The communication needs of Canadians are ever-growing, so the telecom industry is as essential as railways. Also, the 5G network will drive growth further. Since the companies generate billions of dollars in revenue year after year, both stocks are suitable for long-term investors and retirees. Whether you choose one or the other, the dividends are safe and sustainable.

The post Top 5G Stock: Conservative BCE (TSX:BCE) or Aggressive TELUS (TSX:T)? appeared first on The Motley Fool Canada.

The Motley Fool’s First-Ever Cryptocurrency Buy Alert

For the first time ever, The Motley Fool has issued an official BUY alert on a cryptocurrency.

We’ve taken the exact same detailed analysis that we’ve used to find world-beating stocks like Amazon, Netflix, and Shopify to find what we believe will be the ONE cryptocurrency to rise above more than 4,000 cryptocurrencies.

Don’t miss out on what could be a once-in-a-generation investing opportunity.

Click here to get the full story!

More reading

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). The Motley Fool recommends ROGERS COMMUNICATIONS INC. CL B NV, TELUS CORPORATION, and TELUS International (Cda) Inc.

2021

Sours: https://ca.finance.yahoo.com/news/top-5g-stock-conservative-bce-163107209.html
The 3 Best 5G Stocks to Buy Now and Make Money in 2021 - Best 5G Stocks to Invest In?

Top Canadian 5G Stocks to Be Looking at in October 2021

5G is coming to Canada, and you won’t want to be left out. It could easily be the next big investing theme.

We’ve essentially maxed out what 4G wireless networks are capable of. 4G technology can play video, load Facebook, and do a lot of other things, but it’s not very useful for the next generation of technology. We need faster speeds for true innovation tomorrow.

A world powered by 5G has the potential to be a revolutionary place. And whether you're just learning how to buy stocks or a seasoned veteran, you likely want a piece of the pie.

Self-driving cars and drones can zip about, using wireless signals to both get where they’re going and avoid each other. Remote health care will be much easier with ultra-clear video between you and your doctor.

The Internet of Things will allow numerous smart devices to communicate with each other, making overall commerce much easier. Heck, even smart cities will emerge, technological marvels that will change our lives in countless ways.

No wonder so many Canadian investors are excited about 5G stocks. This could prove to be one of the best growth opportunities in the entire market over the next decade or two, and they may be some of the best Canadian stocks to buy.

However, there is not much choice when it comes to Canadian 5G stocks. If you want the heaviest exposure to 5G, you'll likely want to look south of the border. However, we do have plenty of companies up here in Canada that do have some exposure to the booming industry, whether it be suppling equipment or providing services.

Let’s take a closer look at three top Canadian stocks that will have significant exposure to 5G over the next few years.

What are the best 5G stocks in Canada?

3.BlackBerry (TSX:BB)

There are a few ways BlackBerry (TSX:BB) could benefit from an upcoming 5G revolution.

Although the company isn't a big player in the handset business today, its brand is still worth something. It works with a partner that manufactures phones while the parent company still handles the design, marketing, and negotiations with wireless carriers. A good 5G phone would help the company regain some of its former handset glory.

Other parts of BlackBerry are poised to benefit even more from 5G, however. One example is the company’s self-driving car software division, which has ramped up to testing on Ontario streets.

While CEO John Chen claims the technology is at least a decade away from being adopted on a large scale, widescale 5G networks could help speed the process.

BlackBerry has other divisions that will benefit from full-scale 5G rollouts. The company is well-known as a security expert, and these networks will need to be protected from bad guys. It also looks to benefit from helping companies secure their own 5G-connected devices.

The company has also expanded into making software for smart devices. One big part of that business is the auto industry, with BlackBerry’s QNX software powering many in-vehicle entertainment systems. There’s potential to grow this part of the business significantly if ultra-fast 5G networks make it easy for machines to talk to each other.

In fact, the company recently signed a global multi-year deal with Amazon Web Services to continue designing its Blackberry IVY system, which will revolutionize the way auto manufacturers distinguish automobile data.

This is a stock that was unfortunately hit hard by the "meme stock" craze and as you can tell by the chart, it ballooned before cratering in value. However, now that it's back to somewhat reasonable prices, it's a stock to look at for 5G exposure in Canada today.

Blackberry 5 year returns

2. Sierra Wireless (TSX:SW)

Sierra Wireless (TSX:SSW) makes devices that allow internet connected machines to communicate with each other, an application that is particularly useful in the utility, transportation, manufacturing, and retail industries. As 5G connectivity continues to grow, so will demand for these devices.

The company is already a major player in the sector with sales of more than US$600 million in 2020.

Look for that number to slowly increase over 2021 before really jumping in 2022 and beyond, right when 5G is projected to take off.

Remember, the market is forward looking. That means by the time everyone else figures out just how big 5G might be, you’ll have missed your opportunity.

Sierra is extremely bullish on the Internet of Things market once 5G becomes commonplace. In 2018, the total addressable market was approximately 235 million modules.

That’s projected to grow to 1.5 billion modules by 2023. Increased speeds from 5G networks will make all sorts of interesting things happen.

Unfortunately, the company is projected to burn significant cash in 2021, with losses estimated at more than US$0.62 per share. 2022 is expected to be a lot closer to break-even. In fact, some analysts predict the company will post positive EPS of $0.045.

The good news is the company has plenty of cash with US$204 million – or about $5.6 per share – on the balance sheet with zero debt.

With shares trading at less than $19.50 each on the Toronto Stock Exchange – which is well below analyst estimates of $29.59 – today is a great opportunity to pick up this Canadian 5G stock on the cheap.

Sierra Wireless 5 year returns

1. Telus (TSX:T)

Both BlackBerry and Sierra Wireless should benefit as 5G becomes the norm.

But it’s obvious Canada’s wireless providers will be the real winners in such a world. This is why I’m naming Telus (TSX:T) as our top Canadian 5G stock pick.

Telus (along with its competition) is already aggressively investing in 5G equipment to upgrade its existing network.

Although Rogers Communications (TSX:RCI.B) did beat Telus by activating parts of its 5G network in 2020, it was just a pyrrhic victory since there aren’t any phones that are currently 5G compatible.

These upgrades will cost billions, but they’ll be worth it in the end. After all, the Canadian telecom providers always find a way to keep their rates high. Do you really think you’ll have a cheaper cell phone bill once the networks are upgraded?

There will be multiple competitors in the Internet of Things sector. Many companies will be building software that connects smart devices with each other.

There will be multiple competitors on the hardware side, too. Canada’s telecom sector, meanwhile, won’t get caught up in any of that. They’ll make us pay whatever price they determine because these companies own the market.

What a fantastic spot to be in.

I prefer Telus over its competitors for a couple of reasons. Firstly, it’s more of a pure telecom play. Rogers and BCE (TSX:BCE) own media properties and sports teams.

Secondly, Telus posts better operating margins than its competition because of this focus on better businesses.

And lastly, Telus offers a unique combination of being one of Canada's best dividend stocks today in terms of yield (4.61%) and dividend growth.

Telus 5 year returns

The bottom line on Canadian 5G stocks

5G is poised to become a very big deal, and Canadian investors don’t have to be left out. They can seize their share of the profits by investing in a few local 5G stocks. When it comes down to it, there is a very good chance the Canadian government forces telecom companies to cut cell phone bills. So, advancements in 5G technology will more than likely be the path to growth.

Telus looks poised to deliver solid returns without a whole lot of downside risk. That’s why it topped this list. Investors looking to take a little more risk in exchange for a better potential reward might want to look at BlackBerry or Sierra Wireless. If either of these companies take off, their depressed shares could easily rocket higher.

Canada doesn’t have much of a tech sector, but it does have a handful of 5G stocks that can really make a difference in your portfolio. Stick with these names if you’re looking for a way to play the sector.

Sours: https://www.stocktrades.ca/best-canadian-5g-stocks/

Canada 5g stocks

5G is the fifth generation of mobile networks and is expected to be the future of mobile technology. Join us as we review some of the best 5G stocks you can invest in or trade on in 2021. In this article, we analyse past performance and market analyst estimates to provide objective information that can help you make future investment decisions in the 5G revolution.

Get tight spreads, no hidden fees and access to 11,000 instruments.

Start trading

Includes free demo account

Trustpilot

5G: the next generation

Wireless mobile technology has been constantly evolving over the last 40 years, as technology developed and usage became more widespread.

  • 1G arrived in the 1980s alongside the very first mobile phones. Mobile technology was not accessible to everyone, with a mobile phone costing around £3,000.
  • 2G was widely used in the 1990s. Users could send texts for the first time. Around this time, the public started to adopt mobile phones on a larger scale.
  • 3G was used mainly in the 2000s and was a major breakthrough. 3G is still in use today and compared to previous generations can transfer larger amounts of data, enabling video calls, file sharing and easy internet connectivity.
  • 4G was released in 2009. Far superior to 3G, 4G makes video calls, media streaming and internet access much faster and more accessible.
  • 5G was initially released in 2018. It's not widely available yet, but more and more users are connecting via 5G. Many believe that 5G will revolutionise how we connect wirelessly. It's predicted that the speed of the 5G network will underpin trends such as IoT (internet of things), smart cities and big data.

While the expansion of 5G is increasing rapidly, it's not expected to be globally available until 2025. Many companies are aiming to be at the forefront of this 5G revolution, capitalising from the widespread adoption of wireless technology.

The 4 best 5G stocks to watch in 2021

We review a selection of 5G stocks​ that are directly related to the building and adoption of the 5G network, not on their investment potential. The below information should be used as a guide to help determine which stocks you find interesting, and it's important to then conduct your own research before investing.

Qualcomm (QCOM)

Qualcomm is a technology company headquartered in San Diego, California. They design and create software and chips for use in wireless equipment like mobile phones. Qualcomm also develop and commercialise wireless technologies and have previously licensed many technologies related to 3G and 4G technology.

For 5G technologies, more connected devices result in greater income for Qualcomm, due to growth in licensing sales. Last year Qualcomm reached an agreement with Apple for the supply of their chipset in a multi-year deal, concreting the pivotal role Qualcomm could play in 5G technologies. As 5G goes beyond mobile phones, it presents a big opportunity for Qualcomm; its chips enable communications in everything from IoT devices to autonomous cars.

Qualcomm is a profitable company with a market cap of around $91bn and has paid a consistent dividend, even following the Covid-19 crisis. The company has a strong balance sheet with lots of cash at hand to weather hard times and drive innovation. More information on Qualcomm's share price​ >

Ericsson (ERIC)

Ericsson is a telecommunications equipment and services company headquartered in Stockholm, Sweden. They offer services, software and infrastructure in information communication technologies and have around a 27% market share in 2G/3G and 4G mobile network infrastructures. It's no surprise that Ericsson is heavily invested in the 5G revolution.

Ericsson provides hardware and services that help telecom providers upgrade their networks to accommodate the speed increases of 5G technology, with 81 deals signed by February 2020. Additional to the agreements Ericsson boasts, 25 of its networks are also live. In terms of 5G, Ericsson has a strong position, being the first company to deploy 5G networks across four continents, and claiming it supports the largest range of supported devices for 5G connections.

Ericsson is a profitable company, with a market cap of around $29bn. ERIC has also paid a fairly consistent dividend and noted that Covid-19 had a limited impact on its operating income and cash in the first quarter of 2020. With its strong position and fundamentals, Ericsson has the chance to be at the forefront of the 5G revolution. More information on Ericsson's share price​ >

Nokia (NOK)

Nokia is a telecommunications and consumer electronics company headquartered in Espoo, Finland. Shortly behind Ericsson, Nokia claims 67 5G contracts and currently has 19 live networks. Nokia currently holds a market share of around 27% outside of China and boasts than it has won 100% of the contracts it has gone for outside of China, and 90% in China.

Nokia is a successful company with a market cap of around $24bn, and pays a strong dividend for the company’s positioning. Considering these factors, Nokia could be a good 5G stock to buy that is not a market-leader. Stocks that are market-challengers can provide an interesting investment opportunity as they can sometimes beat market expectations. More information on Nokia's share price​ >

Verizon Communications (VZ)

Verizon is a telecommunications provider headquartered in New York, U.S. Verizon chose Ericsson to help upgrade their core network so it is capable of managing 5G speed and communication upgrades. Verizon is hoping to drive its future profitability by the growth in its wireless technologies.

Verizon is the largest wireless communications service provider in the U.S. boasting a market share of 35% and a market cap of around $230bn. Verizon currently also offers the highest dividend on the list and its earnings report following the Coronavirus market crash of March 2020 demonstrated its strength and reliance to weather hard times. The stock holds good potential for future growth based on the above information, especially considering the possible future utility of the 5G network. More information on Verizon's share price​ >

Investing in 5G stocks

When investing in 5G stocks, it can be hard to determine who the winners and losers will be, as 5G still has a long way to go. A common way to get exposure to an industry or technological development in a simple manner is with an ETF (exchange-traded fund) or share basket. These products help provide exposure to a variety of stocks that are related to 5G technologies. This helps spread the risk between multiple companies, but is treated in a similar way to an individual stock.

Our 5G share basket helps provide exposure to 21 stocks related to 5G technologies. Our analysts have done the hard work to discover current and emerging trends driving the 5G sector, and companies well-placed to succeed. To trade on our 5G share basket, you can open a live account or demo account.

Interested in the digital generation? We offer a range of similar share baskets, including streaming stocks​, gaming stocks​ and Big Tech.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

CMC Markets is, depending on the context, a reference to CMC Markets Germany GmbH, CMC Markets UK plc or CMC Spreadbet plc. CMC Markets Germany GmbH is a company licensed and regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) under registration number 154814. CMC Markets UK Plc and CMC Spreadbet plc are registered in the Register of Companies of the Financial Conduct Authority under registration numbers 173730 and 170627.

Telephone calls and online chat conversations may be recorded and monitored. Apple, iPad, and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc. Android is a trademark of Google Inc. This website uses cookies to obtain information about your general internet usage. Removal of cookies may affect the operation of certain parts of this website. Learn about cookies and how to remove them. Portions of this page are reproduced from work created and shared by Google and used according to terms described in the Creative Commons 3.0 Attribution License.

Sours: https://www.cmcmarkets.com/en/trading-guides/the-best-5g-stocks
How To Invest in 5G Stocks (in 2021)

Investing in 5G stocks

{"menuItems":[{"label":"What are 5G stocks?","anchorName":"#what-are-5g-stocks"},{"label":"Why invest in 5G stocks?","anchorName":"#why-invest-in-5g-stocks"},{"label":"Risks of investing in 5G","anchorName":"#risks-of-investing-in-5g"},{"label":"Compare 5G stocks","anchorName":"#compare-5g-stocks"},{"label":"Compare trading platforms","anchorName":"#compare"},{"label":"Bottom line","anchorName":"#bottom-line"}]}

Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our opinions or reviews. Learn how we make money.

The world is abuzz with talk of 5G technology — what it is, how it works and how it has the potential to impact almost everything we do. But the network will take many years to update, and not all the companies in this space will survive the trek to full implementation.

What are 5G stocks?

5G stocks are stocks from companies that produce the hardware and software that makes 5G technology possible. These include a mix of network service operators and hardware manufacturers.

Why invest in 5G stocks?

5G technology is taking off in a big way. GSMA reports that by 2024, the technology will represent a $13.1 billion increase in global GDP — a figure that’s expected to swell to $565 billion by 2034. And Qualcomm believes the global expansion of 5G will generate up to 22.3 million jobs by 2035. This technology isn’t so much a question of if, but when.

With 5G already rolling out across major carriers in Canada, it’s really only a matter of time before the technology becomes a cornerstone of our modern lives.

And beyond the obvious perk of a speedier mobile connection, 5G is expected to have a hand in all sorts of technological advancements, further fueling its growth and market impact. This network will help speed the evolution of autonomous vehicles, VR technology, telemedicine, remote surgery and so much more. Its applications are seemingly endless and implementation is already underway.

What is 5G?

5G is the fifth-generation mobile network. It’s the next step in the evolution of how we transmit data and is made possible by improvements in antenna design, cell towers and frequency ranges.

The technology is intended to deliver faster data speeds, increased bandwidth and a more reliable network. But as it stands, much of the world still operates on 5G’s predecessor: 4G LTE. And that’s because the process of upgrading to 5G is a tedious and time-consuming one: New cell sites must be built and radios, cell towers and networks will need updating.

The fifth-generation mobile network began rolling out to Canadian cities in early 2020, although it had already been available in select US cities back in 2018. Today, Rogers, Bell and Telus have all launched 5G networks in select cities across Canada, with Rogers planning to launch in over 60 cities by the end of 2020. Once live, any device that connects to a 5G network can access more bandwidth, quicker data transmission and more stable connectivity.

Risks of investing in 5G

At this point, 5G feels like nothing short of a certainty — so what’s the catch? Well, revamping a global mobile network isn’t easy. It requires money, cooperation and most of all, time.

The process of getting 5G off the ground will take many years. And unanticipated obstacles could bog down the process in the interim, including a new legislature that controls or limits the applications of the technology.

The technology’s newness is also a contributing factor for investors, as it’s difficult to know which companies will make it in the long run — and the implementation of 5G is expected to be a very long run.

Compare 5G stocks

The list below shows some of the 5G stocks Canadian investors can buy into on either Canadian or US exchanges. If you’re interested in a specific company, take some time to carefully research it — including its history and financials — before you buy in.

  • TELUS Corporation (TSX: T). 5G carrier in Canada
  • BCE Inc. (TSX: BCE). 5G carrier in Canada
  • Rogers Communications Inc. (TSX: RCI.B). 5G carrier in Canada
  • Sierra Wireless, Inc. (TSX: SW). Develops modules and chips used in wireless devices; supplies major companies in the telecommunications industry.
  • Enghouse Systems Limited (TSX: ENGH). Products and solutions for managing 5G networks
  • Verizon Communications Inc. (NYSE: VZ). 5G carrier in the US
  • AT&T Inc. (NYSE: T). 5G carrier in the US
  • American Tower Corp (NYSE: AMT). Wireless communication towers; long-term contract with US 5G carrier, T-Mobile.

Compare trading platforms

To invest in 5G stocks, you’ll need a brokerage account. Review your platform options below.

Sours: https://www.finder.com/ca/5g-stocks

Now discussing:

10 top 5G stocks for 2021: discover some of the hottest 5G companies

5G stocks, as with most investments, have been affected by a turbulent year in 2020, but in 2021 we are starting to see 5G stocks recovering from the effects of coronavirus, and from the uncertainty that surrounded the US presidential race.  

The stock market saw big dips at the end of March 2020, and 5G stocks were amongst those affected. However, since then the market has started its recovery, and the picture for 5G stocks in 2021 still looks attractive to investors. And October through November has seen 5G stocks continuing to increase in value, which will be further buoyed by the recent launch of the 5G iPhone.

The Covid-19 outbreak, and the need for many people to work remotely, and access the internet on the move, has highlighted the importance of 5G technology. And rather than sideline plans for 5G investment, some reports show that the pandemic has moved 5G up the priority list of many enterprises, and consumer use is also increasing.

5G stocks have fluctuated over the last 12 months. Mobile network operators around the world chose 2020 to roll out their first 5G services, billions of dollars were spent on upgrading technology and marketing these new services, and Apple – although a little late to the party – chose 2020 to release its 5G iPhone.

But with so much disruption within the networking and telecommunications industries, what can we expect to see in 2021?

5G stocks prices are on the up

The launch of 5G will affect a huge number of companies, from mobile networks, to healthcare and gaming. This will consequently boost the stock market, as 5G brings new opportunities and revenue streams for companies. And 5G stock prices are likely to increase, as they have over the last 12 months.

In fact, there are entire funds dedicated to 5G tech, such as the The BlueStar 5G Communications Index, which, even with 77 listed companies can sometimes miss 5G stocks that might not fall within its relatively strict remit (such companies focussing on services delivered via 5G). (Defiance ETFs is an exchange-traded funds sponsor and registered investment advisor focused on the next generation of sector investing.)

In this update we bring you updates on the hottest 5G stocks.

Disclaimer: The information below is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

Hot 5G stocks: T-Mobile

5G stock info

Exchange: NASDAQ

Current price: $127.57

Market cap: $158.58bn

Year high: $150.20

Year low: $108.86

P/E ratio: -

Dividend yield: -

T-Mobile US (NASDAQ:TMUS) completed its merger with Sprint in April 2020, creating what the company heralded as a "supercharged Un-carrier that will deliver a transformative 5G network". And marketing speak aside, this wasn’t far off the mark.

At the merger announcement the company said that it expects 14 times more total capacity over the next six years than T-Mobile has today, with T-Mobile also announcing that all new subscribers to T-Mobile would get free access to 5G.

T-Mobile has performed consistently well over the last five years, which has seen the stock price grow from $40 to $115 over that period. And even after the T-Mobile merger with Sprint had been completed, T-Mobile had a debt of $72.5 billion, which, although significant, is far less than the $169 billion and $113 billion that AT&T and Verizon owe, respectively. 

Week-on-week we saw T-Mobile recover from a market-wide dip that affected most 5G stocks in the heat of the US election, and T-Mobile shares recovered by 12 cents, bringing it close to its 12-month high. 

Most recently, T-Mobile addressed what it called the “carrier death grip” of its competition, announcing three new products – 'Home Office', 'Collaborate', and 'Enterprise Unlimited' plans – which will fall within a new offering called ‘WFX’ (work from anywhere). And in April the company announced 74 cents in earnings per share in the first quarter, which was above Wall Street’s average estimate of 54 cents. Revenue was $19.8 billion, almost a billion dollar above expectations, and the company also added a net 1.2 million increase in bill-paying subscribers, which was also higher than expected.

This resulted in a boost to the company's stock of around three percent,  with the share price rising to $136.00 by September 6th. But a move by KeyBanc Capital Markets to downgrade T-Mobile may have had a negative effect, as the share price dipped to $127 as of September 16th.

Hot 5G stocks: Skyworks Solutions

5G stock info

Exchange: NASDAQ

Current price: $176.97

Market cap: $29.19bn

Year high: $203.80

Year low: $132.60

P/E ratio: -

Dividend yield: -

Skyworks Solutions (NASDAQ: SWKS), the semiconductor company, generated 51% of its total revenue from Apple last year. This is both good and bad news as the 5G iPhone release was hit with delays in the wake of coronavirus, which resulted in a 5% dip, followed by an almost immediate recovery. And whilst November 2020 saw a certain amount of volatility in price, Skyworks' share price rose to $151.84 by the 15th January 2021, and jumped a further 20% in the following weeks, hitting a 52-week high of $204 by the end of April.

However, citing the "limited upside potential," Goldman Sachs has recently downgraded Skyworks Solutions from 'Buy' to 'Neutral'. And this announcement, as well as the recent news that its stock had underperformed when compared to some major competitors, saw the 52-week high quickly followed by a dip that took the share price down to $171.31 as of June 21st. However, it has recovered significantly over the last few months, recovering to $183.01 by September 6th, before dipping again to $176.97 by September 16th.

"While we remain constructive on Skyworks' long-term competitive position in the growing RF market, we expect the stock to perform largely in line with our broader Semiconductor and Semiconductor Capital Equipment coverage universe through the balance of the year, with our CY21/22 estimates only marginally above Street consensus and the stock trading at a NTM P/E multiple relative to the S&P 500 that is largely in line with its past 3-year median," explained Goldman Sachs analyst, Toshiya Hari.

Gartner had originally estimated that 221 million 5G smartphones could be sold in 2020 and the Covid-19 outbreak has had an obvious knock-on effect. 

However, with Skyworks being one of the main chipmakers for huge players such as Apple, and with the US trade ban on Chinese technology spreading around the globe, it isn’t an investment to be overlooked. And despite Skyworks being on the radar of many investors over the last few months, it still looks like a good choice for those looking for 5G stocks.

Hot 5G stocks: Ericsson

5G stock info

Exchange: STO: ERIC-B

Current price: SEK 100.06

Market cap: SEK 307.42bn

Year high: SEK 121.80

Year low: SEK 93.42

P/E ratio: 17.26

Dividend yield: 1.96%

Ericsson (STO: ERIC-B)stock jumped around 10% as Ericsson announced adjusted sales for the last financial year of SEK69.6bn (£6bn), an increase of 13% year on year, which the company says was driven by 5G and by sales in Northeast Asia, Europe and North America. Operating income, which excluded restructuring costs, also increased by 80% to SEK11bn, while reported net income was SEK7.2bn.

Strategic contracts, especially those in China, were flagged up by Ericsson as a cause for confidence, and it will no doubt be looking to expand on key partnerships, such as winning an 11.5% stake in a $52bn China Mobile tender (the only European company to do so).

Elsewhere, strong investments in R&D have resulted in the company’s patent licensing business continuing to perform well, due to its impressive IPR portfolio, much of which has taken place in the 5G market with “proven performance and cost of ownership benefits".

“We have continued to increase our market share in several markets by leveraging our competitive product portfolio,” Ericsson's Q2 report says. “Profitability in earlier awarded strategic contracts has improved according to plan. We consider strategic contracts to be a natural part of the business and we will stop our forward looking commentary unless there is an extraordinary impact.”

To top off a good period for the company, it also announced recently that it would be working in Oman to help deliver 5G, as part of a multi-year partnership. And this resulted in the company's share price rising from 87.64 SEK to 96.86 SEK in just 24 hours. And since mid-October, we've seen a slow but steady climb in price, and following better-than-expected financial results, it currently sits at SEK 100.06.

So not the strongest of 5G stocks, but well worth considering if you're looking at a longer-term investment.

Hot 5G stocks: Nokia

5G stock info

Exchange: OMXH

Current price: €4.82

Market cap: €27.35bn

Year high: €5.38

Year low: €2.70

P/E ratio: n/a

Dividend yield: n/a

In October 2019 Nokia (HEL: NOKIA) dropped its 2019/2020 outlook as profits came under pressure due to the company spending more on its 5G networks. 

Whilst Nokia did meet third-quarter expectations, it still decided to cut profit predictions. On top of this, the company paused dividend payments in order to raise investments for 5G. The extra investments that 5G demands put pressure on the company's finances, and as a result Nokia shares plummeted by 21%. 

However, there are green shoots of a recovery coming through, and Nokia has been vocal about its support for open O-RAN technologies, which will be music to the ears of potential partners that may be looking to move away from Huawei.

This has resulted in Morgan Stanley analyst, Dominik Olszewski, upgrading Nokia's 5G stocks rating to Overweight from Equal Weight, with a new price target of €5.00, up from €3.65. Add to this the fact that Nokia's year-on-year sales rose 3% to €5.08 billion, and Nokia looks to be eyeing a brighter future, with its share price currently sitting at €4.82 as of September 16th.

Nokia has also announced its next-generation 5G AirScale Cloud RAN solution based on vRAN2.0, which will be commercially available in 2020. And earlier this year it announced a €400m 5G deal with Taiwan Mobile. 

Hot 5G stocks: Ciena

5G stock info

Exchange: NYSE

Current price:  $53.38

Market cap: $8.27bn

Year high: $61.09

Year low: $38.03

P/E ratio: 18.09

Dividend yield: -

Ciena Corporation (NYSE: CIEN) is a US-based fiber networking specialist, which also produces a number of software-based products that enable network operators to manage xHaul (existing backhaul and fronthaul networks) within 5G networks and beyond.

Ciena specializes in the installation and management of fiber optic networks, which are an essential part of the 5G networking infrastructure, and although other technologies can be used for IP transport, fiber is still the preferred choice.

During the company's fiscal 2020 second quarter, revenue increased by a conservative 3.4%, but adjusted earnings per share rocketed up by 58%, which is a reliable indicator that investors see a positive future for Ciena’s fiber solutions such as its Adaptive IP product. Although, due to the coronavirus pandemic, shares took a hit earlier this year, despite still being up year-on-year. For those that already own Ciena stock, now is not the time to sell. But it may be good point for investors to consider them, as historically Ciena posts annual growth.

In the week commencing 2nd November, Ciena's stock was valued at $39.15, but following the market rally after the US election, it returned to $42.87, and has continued to climb, to the point where it broke $50 by the end of December 2020. And although it still sits a little of its 2020 high of $60, Ciena has seen a decent recovery since the huge sell-offs across the stock market in September 2020, and, as of September 6th, it now sits at $56.92, bolstered by Bank of America changing its purchase status from 'neutral' to 'buy' at the end of January 2021.

As more networks make the move to 5G standalone, and upgrade networking infrastructure accordingly, Ciena will be well placed to handle installation, configuration, and management of fiber optic backhaul within 5G networks.


Hot 5G stocks: Qualcomm

5G stock info

 Exchange: NASDAQ

Current price: $138.24

Market cap: $155.93bn

Year high: $167.94

Year low: $108.30

P/E ratio: 17.26

Dividend yield: 1.97% 

Qualcomm (NASDAQ:QCOM) is one of the most prominent 5G stocks, and following a market-wide slump in the wake of coronavirus, Qualcomm's share price has recovered incredibly well, and it recently hit its 2020-high of $158.09 during December. Since then, it dipped slightly, dropping to $151.79 at the start of January, and after a short recovery, it dipped further to $127.87 by March 11th, recovering slightly over the next four months, to the point where it now sits at $138.24.

Having gained 83% in 52 weeks, Qualcomm should have had a good February, but its stock dropped, with a further decline at the start of March. For those questioning why this happened, it looks like Qualcomm's strong 2020 may not have been strong enough for some investors. So rather than Qualcomm being a busted flush, it might actually be a good time to buy.

And given its history, Qualcomm should bounce back. According to Yahoo! Finance: "One of the stand out quality metrics for Qualcomm Inc is its 5-year Return on Capital Employed, which is a solid 13.0%. Good, double-digit ROCEs are a pointer to companies that can grow very profitably."

And Qualcomm has also seen its stock on the rise following the recent announcement that Qualcomm was launching its new Robotics RB5 platform, which integrates key capabilities such as high-performance heterogeneous computing, 5G/LTE, hi-fidelity sensor processing for perception, odometry for localization, mapping, navigation, strong security, and Wi-Fi connectivity.

The news instigated a six dollar jump in Qualcomm's share price, as the momentum around 5G use cases within the industrial sectors. (The Qualcomm Robotics RB5 platform is designed for the next generation of high compute, low-power robots and drones for the consumer, enterprise, defense, industrial and professional service sectors.)

Hot 5G stocks: Aviat

5G stock info

Exchange: NASDAQ

Current price: $34.87

Market cap: $489.33m

Year high: $43.76

Year low: $9.25

P/E ratio: 3.70

Dividend yield: -

Aviat Networks (NASDAQ: AVNW) recently announced that it is working with Safaricom, the largest telecom company in Kenya, to deliver a backhaul connection in remote areas using microwave technology.

Given what we've already reported, regarding the slump during the conclusion of the US election, it should come as no surprise that Aviat Networks had recovered from $18.75 to $34.87 by September 16th 2021. 

Rolling out 5G in more remote locations poses a number of challenges for mobile network operators (MNOs) around the world, one of the biggest being establishing a backhaul connection when there isn’t the option to run fiber or copper cable to a cell site.

In these cases, MNOs are turning to microwave frequency bands, which, although having extremely poor general coverage, are perfect for focusing a narrower beam, which creates a point-to-point connection between sites, and can deliver speeds of up to 10Gbps, over a distance of six miles.

And Aviat says that its multi-band products, such as the The WTM 4800, provide the lowest TCO for 5G backhaul, especially in countries, like Kenya, where the cost of microwave spectrum is high.

Hot 5G stocks: Marvell Technology

5G stock info

Exchange: NASDAQ

Current price: $62.46

Market cap: $51.44bn

Year high: $64.07

Year low: $35.30

P/E ratio: -

Dividend yield: 0.38%

Marvell Technology Group (NASDAQ: MRVL) received a downgrade at the start of the year, but this didn't cause panic amongst investors, who saw the stock rally, from $21 at the end of February, to over $45 at the beginning of December. And it jumped further at the start of January, settling to $50.98 by February 22nd, and over the summer it has climbed steadily to $62.46 as of September 16th.

Similar to Qualcomm, the reason for this is likely to be lower-than-expected results, despite Marvell stock increasing by 80% in the past year the PHLX Semiconductor index only increasing by 58% in comparison). 

Marvell, which made nearly $3 billion in revenue during 2019, has entered partnerships with companies such as Nokia, which it will supply with a new range of system-on-a-chip and infrastructure processors. Marvell's chipsets will eventually replace the field programmable gate arrays (FPGAs) that Nokia originally chose for its 5G products. These were an expensive option that doesn’t appear to have paid off.

The fact that Marvell stock has grown so significantly in recent years may have moved it beyond the interest of many investors, with some claiming that it may be over-valued, but it could still make a good buy for those looking for a longer-term investment.

Hot 5G stocks: American Tower Corporation

5G stock info

Exchange: NYSE

Current price: $297.17

Market cap: $137.46bn

Year high: $302.94

Year low: $198.90

P/E ratio: 59.88

Dividend yield: 1.71%

American Tower Corporation (NYSE: AMT) is an owner and operator of wireless infrastructure. This company has an impressive $100.36bn market cap and a huge global footprint. AMT owns over 170,000 telecom infrastructure sites, and so is perfectly placed to benefit from 5G. 

At the beginning of 2020 AMT stock rose by nearly 2% after it was upgraded to ‘Buy’ by Goldman Sachs, as they see rapid growth from expanding 5G coverage. 

However, the stock has seen more conservative increases as the company was hit by the effects of the coronavirus pandemic, and the slowing roll out of 5G around the world.

But, like other communications infrastructure companies, the next few months should see a return to previous levels of growth, and its stock currently sits at $297.17, just a few cents of its 12-month high. And this increase has also been buoyed by above-average performance against analyst reports.

Add to this the increasingly defensive position of the US government when it comes to technology providers, and the future looks bright for the American Tower Corporation, as demand for 5G infrastructure continues to grow. 

Hot 5G stocks: MediaTek

5G stock info

Exchange: TPE

Current price: 936.00 TWD

Market cap: 1.49tn TWD

Year high: 1,185.00 TWD

Year low: 581.00 TWD

P/E ratio: 18.33

Dividend yield: 3.95%

In August 2020, US sanctions on Huawei were extended to MediaTek Inc. (2454:Taiwan), as the US DOC announced that it has added 38 Huawei affiliates to the US government's economic blacklist, taking the total to 152.

This caused a 10% drop in MediaTek’s share price, but this knee-jerk drop, alarming as it was for investors, doesn’t really paint a true picture of MediaTek’s investment potential. In fact, it may have made it even more appealing for investors willing to look at the longer-term.

Like other shares, it took a hit in the US election campaign, dropping to 665.00 TWD, but recovered to 686.00 TWD within a week, reflecting the resilience of this stock. And it has rallied every since, and by February 22nd it reached 951.00 TWD (having reached 1,010.00 TWD a few days prior to that, before dipping slightly). And the stock took a further dip, dropping to 870.00 TWD by March 23rd, before recovering to 936 TWD as of September 16th.

MediaTek recently announced its 7nm Dimensity 800U chipset, which has an impressive list of features, supporting sub-6Ghz SA and NSA networks, whilst also supporting technologies such as 5G+5G dual SIM dual standby (DSDS), dual Voice over New Radio (VoNR), and 5G two carrier aggregation (2CC 5G-CA).

And in recent news realme announced that it would be continuing to expand its range of affordable 5G phones, with the new realme 8 5G becoming the UK’s first smartphone to feature MediaTek’s Dimensity 700 5G processor.

Dan is a British journalist with 20 years of experience in the design and tech sectors, producing content for the likes of Microsoft, Adobe, Dell and The Sunday Times. In 2012 he helped launch the world's number one design blog, Creative Bloq. Dan is now editor-in-chief at 5Gradar, where he oversees news, insight and reviews, providing an invaluable resource for anyone looking to stay up-to-date with the key issues facing 5G.

Sours: https://www.5gradar.com/buying-guides/top-5g-stocks-discover-the-latest-news-rumours-and-deals


125 126 127 128 129