5G is the fifth generation of mobile networks and it is expected to be the future of technology. Last month, Apple (AAPL Stock Report) released its first 5G iPhone. Since that announcement 5G stocks have seen an increase of attention from investors in the stock market today. 5G first came on the scene in 2018, and many people believe that 5G will revolutionize how we connect wirelessly. One of the most interesting things about 5G is the beneficiaries of it. This powerful wireless technology will help evolve multiple sectors. This includes telecom, semi-conductor, and gaming stocks, to name a few. According to a report from Grand View Research, the global 5G services market will be worth $41.5 billion this year and grow at a compound annual growth rate (CAGR) of 43.9% by 2027.
The positive sentiment around the long-term outlook of the 5G technology is great for investors who are looking for the top 5G stocks to buy [or sell] right now. Companies like T-Mobile (TMUS Stock Report) stock price is up over 100% from its 52-week low back in March. This could be because TMUS was the first company to introduce the 5G network to the United States. We quickly saw top telecom stocks Verizon, and AT&T (T Stock Report) followed suit announcing their 5G network. With Apple’s new release and Pfizer (PFE Stock Report) recently announced positive COVID-19 vaccine news, let’s take a look at the best 5G stocks to watch this week.
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Qualcomm (QCOM Stock Report) has been of the best performing 5G stocks in the stock market this year. The company’s stock price is up 152% from March’s lows and closed Friday’s trading session at $143.91. Qualcomm is the leading manufacturer of chipsets for smartphones. If you own an iPhone or Samsung it’s likely your smartphone has a Qualcomm chipset inside of it right now. Qualcomm distributes its chipsets to Apple and Samsung (SSNLF Stock Report).
Recently the company reported its fourth-quarter fiscal earnings and beat investor and analyst expectations. The company reported a revenue of $8.34 billion, resulting in a 73% increase year-over-year. QCOM also reported it grew its operating cash flow by 41% due to an impressive 41.3% operating margin.
Qualcomm CEO, Steve Mollenkopf stated, “Our fiscal fourth-quarter results demonstrate that our investments in 5G are coming to fruition and showing benefits in our licensing and product businesses. We concluded the year with exceptional fourth-quarter results and are well-positioned for growth in 2021 and beyond.”
Aside from Qualcomm being strongly positioned to capitalize on the 5G revolution through its strategic partnerships, and strong financial performance QCOMM stock is still trading under 19 times forward earnings. That’s relatively attractive for a growth tech stock. With such a promising upside, you can see why we have Qualcomm on our list of best 5G stocks to watch this week.Best 5G Stocks To Buy [Or Avoid] This Week: Ericsson
Ericsson (ERIC Stock Report) is a telecommunications equipment and services company. The company offers services, infrastructure, and software in information communication technologies. They currently hold roughly 27% market share in 2G/3G and 4G mobile network infrastructures. Given the nature of Ericsson’s business model, it’s no surprise that they are very invested in the 5G movement. Ericsson provides the hardware and services that help telecom companies upgrade their networks to sustain the increase in the speed of 5G technology.
Börje Ekholm, President, and CEO mentioned that “The execution on our focused strategy has delivered a turnaround which creates a robust base for the future and delivered global leadership in 5G today. The Covid-19 pandemic is a humbling reminder that wireless connectivity fundamentally underpins future global growth and so urgent deployment is critical. It will support a global innovation opportunity for consumers and enterprise which touches every corner of our world and every sector of the economy.”
ERIC stock price has jumped 91.24% from March’s lows. As of Friday’s close, the VZ stock price is at $11.80 a share. In reference to 5G, Ericsson is well-positioned being the first company to deploy 5G networks across four continents. The company also states it currently supports the largest range of supported devices for 5G connections. Due to its current position within the market and fundamentals that is why Ericsson is on our list of the best 5G stocks to watch this week.
[Read More] 3 Top Tech Stocks To Watch In NovemberBest 5G Stocks To Buy [Or Avoid] This Week: Verizon
Last on the list of 5G stocks to watch this week is telecom giant Verizon (VZ Stock Report). Verizon is currently the biggest wireless communications service provider in the United States amounting to 35% of the market share with a market cap near $230 billion. The company’s 5G Nationwide service is available to more than 200 million people across 1,800 cities. VZ Stock has increased 24.06% from March lows of $49 to Friday’s previous close of $60.79.
In late October, Verizon released their third-quarter earnings. The company reported that it’s 5G Ultra Wideband service is now available in 55 cities, 43 stadiums and arenas, and 7 airports across the U.S. They also reported that they ended the quarter with a $9B cash balance.
“Another area which we’re very proud of, that the team has done in the quarter is, of course, continue the relentless execution on our 5G network. And we launched the 5G nationwide last week. As I said through the whole year, that we’re going to launch the network when it commercially makes sense. It made sense last week when the iPhone 12 was launched in the market. So now we have nationwide covering more than 200 million of the population of the United States, more than 1,800 cities when it comes to our 5G nationwide based on the DSS technology,” stated Chairman and CEO Hans Vestberg.
Verizon continues to show that it has the strength, and ability to continue to weather the COVID-19 pandemic. For the reasons we just discussed VZ is on the list of the best 5G stocks to