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The Zacks Analyst Blog Highlights: Skyworks Solutions, Qorvo, Analog Devices, Viavi Solutions and Corning
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For Immediate Release
Chicago, IL – March 24, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Skyworks Solutions, Inc. (SWKS - Free Report) , Qorvo, Inc. (QRVO - Free Report) , Analog Devices, Inc. (ADI - Free Report) , Viavi Solutions Inc. (VIAV - Free Report) and Corning Inc. (GLW - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Top-Ranked Stocks to Make the Most of 5G Uptrend
5G boasts lightning speed that facilitates seamless transfer of data, which has gained immense significance amid the coronavirus outbreak.
Rapid proliferation of remote working, learning and health diagnosis amid lockdowns and shelter-in-place guidelines to curb the spread of the COVID-19 virus has highlighted the limitations of 4G networks and the urgent need to switch to 5G networks.
5G is expected to unlock the full potential of emerging technologies such as IoT, AI, AR/VR, among others.
The linchpin technology is the building block of increasing proliferation of smart connected homes, hospitals, factories and cities, and self-driving vehicles. These factors are driving 5G push.
Growth Prospects Abound
Per latest data from IDC, 5G smartphone shipments are projected to account for more than 40% of global volume in 2021 and to subsequently grow to 69% in 2025.
Furthermore, growing demand for e-commerce, contactless delivery through drones and digital payment highlight the urgency for 5G network development. As such, the 5G infrastructure market is estimated to rise from $784 million in 2019 to $47.78 billion by 2027 at a CAGR of 67.1%, per a MarketsandMarkets report.
Markedly, 5G subscriptions are projected to hit 3.5 billion by 2026, representing 40% of total mobile subscriptions.
Also, according to the Harnessing the 5G Consumer Potential report from Ericsson, the worldwide 5G consumer market is expected to be worth $31 trillion by 2030. 5G is poised to unlock massive opportunities for communications service providers (CSPs) in consumer business over the decade. The consumer market already generates a high share of wireless service revenues for service providers and will continue to grow with 5G.
Almost 40% of these revenue projections can be attributed to consumer spending on enhanced video, augmented and virtual reality and cloud gaming over 5G networks. By being proactive in driving 5G differentiation, service providers can potentially gain 34% higher 5G average revenue per user by 2030.
The report estimates that service providers could secure a cumulative $3.7 trillion of 5G-enabled consumer revenues by 2030. Furthermore, it adds that they can directly generate $131 billion in revenues by 2030 from digital services by developing and marketing 5G use cases.
Here we pick six stocks that are well-poised to benefit from solid growth in 5G infrastructure spending and accelerated proliferation.
Skyworks Solutions, a RF component supplier, is well positioned to benefit from the accelerated 5G deployment and demand spike for 5G handsets. In fiscal 2020, Apple accounted for 51% of Skyworks’ net revenues.
This Zacks Rank #1 (Strong Buy) company’s Sky5 product portfolio facilitated several 5G smartphone launches. Additionally, Skyworks continues to gain component share from Samsung, VIVO and Xiaomi apart from Apple. You can see the complete list of today’s Zacks #1 Rank stocks here.
Moreover, Skyworks’ diversified portfolio positions it well to capitalize on momentum witnessed across telemedicine along with remote work, online learning and video streaming, triggered by the coronavirus crisis.
Notably, the Zacks Consensus Estimate for Skyworks fiscal 2021 earnings has moved up 36.6% to $10.27 per share over the past 60 days.
Qorvois witnessing robust traction for its 5G solutions driven by increase in production ramp of 5G smartphones. These offerings are highly integrated and high-performance solutions, which enable customers to reduce product footprint and accelerate products to market. Additionally, Qorvo’s mid-high-band and ultra-high-band 5G solutions are being adopted by all leading 5G chipsets.
Solid uptake of Bulk Acoustic Wave (BAW) filters, as economies started to reopen, is expected to drive the top line. Moreover, robust mobile growth in China (primarily backed by 5G) and expanding portfolio of 5G base solutions amid accelerated deployment of 5G bodes well.
Being a prominent supplier to Apple, like Skyworks, seasonal iPhone upgrades hold promise for Qorvo. Notably, in fiscal 2020, Apple accounted for 33% of Qorvo’s revenues. Also, improving iPhone sales despite coronavirus breakout is a tailwind. Specifically, 5G is expected to drive the company’s RF revenues in 2021 and beyond.
Notably, the consensus mark for fiscal 2021 earnings has been revised upward by 9.2% to $9.45 per share in 60 days’ time. Qorvo currently carries a Zacks Rank #2 (Buy).
Analog Devicesderives its strength from its communication business, which is backed by rising acceptance of advanced radio systems in 5G infrastructures. It remains optimistic about growth opportunities related to 5G.
Analog Devices’ full signal-chain solutions aid 5G operators to reduce time to market with focus on end-product performance and by eliminating complexity in supply chain in a cost-efficient manner. The company, which currently carries a Zacks Rank #2, helps customers design the radio architectures and deploy 5G system with high performance and low power functionalities.
The consensus mark of $6.00 per share for its fiscal 2021 earnings has moved north by 5.4% over the past 60 days.
Ericsson is focusing on 5G system development and has undertaken several notable endeavors to position itself for market leadership on 5G. The company currently has 134 commercial 5G agreements with communications service providers (of which 76 are publicly announced) and includes 83 live 5G networks in 41 countries.
The acquisition of Cradlepoint has strengthened the company’s position in the 5G enterprise market.
Further, Ericsson is gaining from accelerated 5G deployments in North-East Asia, North America and Europe. Notably, the company’s 5G RAN technologies provide the ultimate infrastructure required to meet the growing demand for high-bandwidth connections and support real-time communication requirements of mission-critical applications, which hold promise.
The Zacks Consensus Estimate for this Zacks Rank #2 company’s 2021 earnings has been revised upward by 9.7% over the past 60 days to 79 cents.
Viavi Solutions is well-positioned to benefit from a comprehensive product portfolio that offers end-to-end network visibility and analytics. Management expects growth in 2021 to be driven by the secular demand for 5G wireless and fiber products.
The company’s wireless and fiber test solutions are in the early stages of a multi-year investment cycle fueled by the transition of OEMs and service providers to super-fast 5G networks. The healthy growth traction is further demonstrated by the upside in wireless & fiber test, 3D sensing products, optical transport, Ethernet, broadband access, video test and storage network testing markets.
The 5G transition is expected to be disruptive, creating new avenues for industries across the board. The convergence of network technologies requires significant investments from both traditional carriers (telecom and cable) and cloud service providers. This Zacks Rank #2 company’s solutions are well-poised to meet these rapidly changing industry trends, given its technology prowess, product depth and wide customer base.
The consensus mark of 79 cents per share for its fiscal 2021 earnings has moved 6.8% north over the past 60 days.
Last but not the least, investors can count on Corning as a bright 5G stock, backed by strength in its broad portfolio of end-to-end fiber and wireless solutions for communications networks.
Markedly, 5G networks need a much tighter mesh of radio antennas to support the volume of connections, low latency, and connection speeds. This necessitates the use of fiber required to transmit the vast amount of 5G data.
Corning’s expertise in optical fiber and cable utilized in connectivity, positions it well to boost the rapid deployment of access points to provide an enhanced infrastructure for the new 5G cells.
The Zacks Consensus Estimate for this Zacks Rank #2 company’s 2021 earnings has been revised upward by 4.4% over the past 60 days to $1.91 per share.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Skyworks Solutions, Qorvo, Analog Devices, Viavi Solutions and Corning
For Immediate Release
Chicago, IL – March 24, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Skyworks Solutions, Inc. (SWKS - Free Report) , Qorvo, Inc. (QRVO - Free Report) , Analog Devices, Inc. (ADI - Free Report) , Viavi Solutions Inc. (VIAV - Free Report) and Corning Inc. (GLW - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Top-Ranked Stocks to Make the Most of 5G Uptrend
5G boasts lightning speed that facilitates seamless transfer of data, which has gained immense significance amid the coronavirus outbreak.
Rapid proliferation of remote working, learning and health diagnosis amid lockdowns and shelter-in-place guidelines to curb the spread of the COVID-19 virus has highlighted the limitations of 4G networks and the urgent need to switch to 5G networks.
5G is expected to unlock the full potential of emerging technologies such as IoT, AI, AR/VR, among others.
The linchpin technology is the building block of increasing proliferation of smart connected homes, hospitals, factories and cities, and self-driving vehicles. These factors are driving 5G push.
Growth Prospects Abound
Per latest data from IDC, 5G smartphone shipments are projected to account for more than 40% of global volume in 2021 and to subsequently grow to 69% in 2025.
Moreover, Grand View Research estimates the 5G chipset market to witness a CAGR of 63.4% between 2020 and 2027.
Furthermore, growing demand for e-commerce, contactless delivery through drones and digital payment highlight the urgency for 5G network development. As such, the 5G infrastructure market is estimated to rise from $784 million in 2019 to $47.78 billion by 2027 at a CAGR of 67.1%, per a MarketsandMarkets report.
Markedly, 5G subscriptions are projected to hit 3.5 billion by 2026, representing 40% of total mobile subscriptions.
Also, according to the Harnessing the 5G Consumer Potential report from Ericsson, the worldwide 5G consumer market is expected to be worth $31 trillion by 2030. 5G is poised to unlock massive opportunities for communications service providers (CSPs) in consumer business over the decade. The consumer market already generates a high share of wireless service revenues for service providers and will continue to grow with 5G.
Almost 40% of these revenue projections can be attributed to consumer spending on enhanced video, augmented and virtual reality and cloud gaming over 5G networks. By being proactive in driving 5G differentiation, service providers can potentially gain 34% higher 5G average revenue per user by 2030.
The report estimates that service providers could secure a cumulative $3.7 trillion of 5G-enabled consumer revenues by 2030. Furthermore, it adds that they can directly generate $131 billion in revenues by 2030 from digital services by developing and marketing 5G use cases.
Here we pick six stocks that are well-poised to benefit from solid growth in 5G infrastructure spending and accelerated proliferation.
Skyworks Solutions, a RF component supplier, is well positioned to benefit from the accelerated 5G deployment and demand spike for 5G handsets. In fiscal 2020, Apple accounted for 51% of Skyworks’ net revenues.
This Zacks Rank #1 (Strong Buy) company’s Sky5 product portfolio facilitated several 5G smartphone launches. Additionally, Skyworks continues to gain component share from Samsung, VIVO and Xiaomi apart from Apple. You can see the complete list of today’s Zacks #1 Rank stocks here.
Moreover, Skyworks’ diversified portfolio positions it well to capitalize on momentum witnessed across telemedicine along with remote work, online learning and video streaming, triggered by the coronavirus crisis.
Notably, the Zacks Consensus Estimate for Skyworks fiscal 2021 earnings has moved up 36.6% to $10.27 per share over the past 60 days.
Qorvois witnessing robust traction for its 5G solutions driven by increase in production ramp of 5G smartphones. These offerings are highly integrated and high-performance solutions, which enable customers to reduce product footprint and accelerate products to market. Additionally, Qorvo’s mid-high-band and ultra-high-band 5G solutions are being adopted by all leading 5G chipsets.
Solid uptake of Bulk Acoustic Wave (BAW) filters, as economies started to reopen, is expected to drive the top line. Moreover, robust mobile growth in China (primarily backed by 5G) and expanding portfolio of 5G base solutions amid accelerated deployment of 5G bodes well.
Being a prominent supplier to Apple, like Skyworks, seasonal iPhone upgrades hold promise for Qorvo. Notably, in fiscal 2020, Apple accounted for 33% of Qorvo’s revenues. Also, improving iPhone sales despite coronavirus breakout is a tailwind. Specifically, 5G is expected to drive the company’s RF revenues in 2021 and beyond.
Notably, the consensus mark for fiscal 2021 earnings has been revised upward by 9.2% to $9.45 per share in 60 days’ time. Qorvo currently carries a Zacks Rank #2 (Buy).
Analog Devicesderives its strength from its communication business, which is backed by rising acceptance of advanced radio systems in 5G infrastructures. It remains optimistic about growth opportunities related to 5G.
Analog Devices’ full signal-chain solutions aid 5G operators to reduce time to market with focus on end-product performance and by eliminating complexity in supply chain in a cost-efficient manner. The company, which currently carries a Zacks Rank #2, helps customers design the radio architectures and deploy 5G system with high performance and low power functionalities.
The consensus mark of $6.00 per share for its fiscal 2021 earnings has moved north by 5.4% over the past 60 days.
Ericsson is focusing on 5G system development and has undertaken several notable endeavors to position itself for market leadership on 5G. The company currently has 134 commercial 5G agreements with communications service providers (of which 76 are publicly announced) and includes 83 live 5G networks in 41 countries.
The acquisition of Cradlepoint has strengthened the company’s position in the 5G enterprise market.
Further, Ericsson is gaining from accelerated 5G deployments in North-East Asia, North America and Europe. Notably, the company’s 5G RAN technologies provide the ultimate infrastructure required to meet the growing demand for high-bandwidth connections and support real-time communication requirements of mission-critical applications, which hold promise.
The Zacks Consensus Estimate for this Zacks Rank #2 company’s 2021 earnings has been revised upward by 9.7% over the past 60 days to 79 cents.
Viavi Solutions is well-positioned to benefit from a comprehensive product portfolio that offers end-to-end network visibility and analytics. Management expects growth in 2021 to be driven by the secular demand for 5G wireless and fiber products.
The company’s wireless and fiber test solutions are in the early stages of a multi-year investment cycle fueled by the transition of OEMs and service providers to super-fast 5G networks. The healthy growth traction is further demonstrated by the upside in wireless & fiber test, 3D sensing products, optical transport, Ethernet, broadband access, video test and storage network testing markets.
The 5G transition is expected to be disruptive, creating new avenues for industries across the board. The convergence of network technologies requires significant investments from both traditional carriers (telecom and cable) and cloud service providers. This Zacks Rank #2 company’s solutions are well-poised to meet these rapidly changing industry trends, given its technology prowess, product depth and wide customer base.
The consensus mark of 79 cents per share for its fiscal 2021 earnings has moved 6.8% north over the past 60 days.
Last but not the least, investors can count on Corning as a bright 5G stock, backed by strength in its broad portfolio of end-to-end fiber and wireless solutions for communications networks.
Markedly, 5G networks need a much tighter mesh of radio antennas to support the volume of connections, low latency, and connection speeds. This necessitates the use of fiber required to transmit the vast amount of 5G data.
Corning’s expertise in optical fiber and cable utilized in connectivity, positions it well to boost the rapid deployment of access points to provide an enhanced infrastructure for the new 5G cells.
The Zacks Consensus Estimate for this Zacks Rank #2 company’s 2021 earnings has been revised upward by 4.4% over the past 60 days to $1.91 per share.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.