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5G Set to Transform US Healthcare: 3 Stocks to Watch

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Experts believe that switching from 4G cellular technology to 5G is like leveling up from typewriter to computer. In fact, countries like the United States, China, South Korea, Germany and the United Kingdom have already rolled out 5G networks, while Switzerland and Nordic countries are planning to deploy it very soon.

According to global tech market advisory firm ABI Research, there will be 5.3 million 5G connections which will generate revenues of more than $184 million by 2026.

Speaking of healthcare in particular, it is encouraging to note that for tapping the enormous 5G opportunities, many non-MedTech players are aggressively foraying into the industry. Such stocks are likely to see mammoth investments.

For instance, last month, President Donald Trump asked Apple (AAPL - Free Report) to consider helping build the country’s 5G infrastructure. In fact, Apple’s Health App and wearable Watch have long been assisting healthcare providers.

Let’s take a look at how 5G can bring about a revolution in healthcare.

Healthcare Reshaping Under the 5G Regime

With the medical industry undergoing digital transformation, network infrastructure is playing an increasingly important role in delivering medical services.

Notably, the 5G regime is expected to bring about intra-hospital monitoring, mobile ward rounds and remote consultation, wireless specialist diagnosis, robotic surgery in remote places as well as teaching and emergency response.

Notably, Telit, a global leader in IoT enablement, is making it possible to connect patients and devices to enable actionable insights that improve patient care and help control costs. Telit enables IoT solutions that make it easy to securely monitor data while ensuring accuracy and patient privacy.

3 Non-MedTech Players Eyeing Healthcare With 5G

We have zeroed down on three non-MedTech stocks, which have been successfully transforming healthcare opportunities with the advent of 5G. Quarter to date, all the three stocks have outperformed the industry.

Ericsson (ERIC - Free Report) is a leading provider of communication networks, telecom services and support solutions. This Zacks Rank #3 (Hold) company’s next-generation networks have been playing a pivotal role in healthcare transformation. Management at Ericsson believes that the 5G business opportunity that comes from industrial digitalization lies in eight key global industries, one of which is healthcare. In fact, in healthcare, Ericsson predicts a $76 billion-revenue opportunity by 2026 for operators addressing healthcare transformation with 5G.

Quarter to date, the stock has rallied 13.7% compared with the industry’s 3.7% rise.

Investors may also keep an eye on AT&T Inc. (T - Free Report) . The Zacks Rank #3 company is the second-largest wireless service provider in North America and one of the world’s leading communications service carriers.

The company has brought about a transformation in digital healthcare. Delivering connected healthcare through 5G technologies by expanding telemedicine, real-time remote healthcare monitoring, etc. The company’s Internet of Medical Things products like Aira Service, Astute CTR-01 hub and JACS Solutions Secured Tablet deserve a mention here.

The stock has risen 2.3% compared with the industry’s 1.2% rise.

Lastly, Intel Corporation (INTC - Free Report) supplies industries with microprocessors and system building blocks that are integral to computers and other connected devices, servers, and networking and communications products. The stock has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

From imaging to advanced analytics, Intel helps harness the power of data analytics and AI to transform healthcare. Also, courtesy to 5G Intel’s personalized healthcare services now include connected ambulances, remote specialty treatment, precision medicine solutions, etc.

The stock has rallied 11.3% compared with the industry’s 10% gain.

Things to Keep in Mind

Amid all the 5G hype, there are apprehensions related to the overall security landscape. The IoT can be vulnerable to issues such as online frauds, data breach, identity theft and ransomware attacks. For most new-age digital enterprises, 5G translates into increased number of network endpoints that could be compromised by hackers, thus creating a different threat landscape.

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