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5 Stocks Likely to Make the Most of the Booming Demand for 5G
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5G has been taking the world of technology by storm over the past few years, thanks to the myriad advantages it offers to users. With the help of 5G, users can enjoy faster transmission speeds and lower latency, at least in comparison to 4G. This means that the pace of completing a task is boosted significantly.
5G can efficiently handle multiple devices that are connected to the network, which should aid the adoption of the Internet of Things technology. Besides that, owing to lower latency, tasks can be performed close to real-time which means that upcoming technologies like cloud gaming stand to benefit. This is because 5G can reduce the lag time in response, thereby enhancing the gaming experience.
The advantages that 5G offers has been leading to its expansion around the world and it is expected to grow further. According to a report by Ericsson, 5G covered about 15% of the world’s population or 1 billion people at the end of 2020. The report further mentioned that 5G is set to cover about 60% of the world’s population in 2026.
Several countries are accelerating their 5G adoption with Brazil recently announcing that it has officially approved the tender process for 5G spectrum auction, as mentioned in an RCR Wireless News article. Corporate giants are also striking deals to explore the benefits of 5G. On Jul 1, Qualcomm Technologies, Inc., a subsidiary of QUALCOMM Incorporated (QCOM - Free Report) , announced in a report its plans to collaborate with Capgemini to boost 5G private network implementations. On Apr 21, Amazon stated in a report that Amazon Web Services (“AWS”) will be forming a strategic collaboration with DISH Network as part of which the latter will leverage AWS’ infrastructure and services for building a cloud-based, 5G open radio access network.
As an outcome of the conveniences that 5G offers, 5G smartphones are also witnessing increased demand across the world. In the first quarter of 2021, global 5G smartphone shipments grew 6% over the previous quarter and reached a record 136 million units, per a report by Strategy Analytics. In fact, Strategy Analytics estimated in the report that for full-year 2021, global 5G smartphone shipments are expected to reach a record 624 million units, compared with 269 million units shipped in 2020.
5G has emerged as one the major technological advancements and it is no surprise that it will continue to expand going forward. According to a report by Gartner, worldwide 5G network infrastructure revenues are set to rise 39% in 2021. Per a report by Markets and Markets, the global 5G services market is expected to witness a CAGR of 29.4% from 2020 to 2026.
5 Stocks to Keep an Eye On
The adoption of 5G is increasing and the trend is expected to continue. This seems to be a good time to look at companies that can make the most of this market opportunity. We have selected five such stocks that carry a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Apple Inc. (AAPL - Free Report) launched its 5G range of smartphones in October 2020, namely the iPhone 12 lineup. In fiscal third-quarter 2021, iPhone sales increased 49.8% from the year-ago quarter. Sales were boosted by robust demand for the iPhone 12 lineup of devices.
Shares of Apple have gained 11.2% year to date and it currently sports a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has increased 7.9% over the past 60 days. The company’s expected earnings growth rate for the current year is 70.4%.
QUALCOMM offers its Snapdragon 5G Mobile Platforms. On Jun 28, the company announced the launch of its Snapdragon 888 Plus, which is an upgraded version of its Snapdragon 5G Mobile Platform.
Shares of this Zacks Rank #2 company have risen 6.5% over the past three months. The Zacks Consensus Estimate for its current-year earnings has increased 5.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 96.7%.
Corning Incorporated (GLW - Free Report) offers 5G Enterprise Radio Access Network, which is a system that provides 5G services to enterprises and venue owners. On Aug 10, the company introduced cellular solutions to help network operators bring reliable 5G connection indoors.
Shares of Corning have risen 11.6% year to date and it currently has a Zack Rank #3. The Zacks Consensus Estimate for its current-year earnings has increased 1.9% over the past 60 days. The company’s expected earnings growth rate for the current year is 53.2%.
American Tower Corporation (AMT - Free Report) is a real estate investment trust that independently operates wireless communications towers. The company provides innovative infrastructure solutions to enable 5G.
Shares of American Tower have risen 26.2% year to date. The Zacks Consensus Estimate for its current-year earnings has increased 0.7% over the past 60 days. This Zacks Rank #3 company’s expected earnings growth rate for the current year is 12.6%.
Nokia Corporation (NOK - Free Report) provides mobile and fixed network solutions worldwide. In the second quarter of 2021, net sales of the company’s Mobile Networks segment grew 3% year over year on a constant currency basis, boosted by robust growth in 5G. On Aug 23, Nokia announced that it has been selected by A1 Telekom Austria Group for extending its 5G footprint outside of Austria into Bulgaria, Serbia, and Slovenia.
Shares of Nokia have risen 53.2% year to date and it currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has increased 31% over the past 60 days. The company’s expected earnings growth rate for the current year is 26.7%.
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5 Stocks Likely to Make the Most of the Booming Demand for 5G
5G has been taking the world of technology by storm over the past few years, thanks to the myriad advantages it offers to users. With the help of 5G, users can enjoy faster transmission speeds and lower latency, at least in comparison to 4G. This means that the pace of completing a task is boosted significantly.
5G can efficiently handle multiple devices that are connected to the network, which should aid the adoption of the Internet of Things technology. Besides that, owing to lower latency, tasks can be performed close to real-time which means that upcoming technologies like cloud gaming stand to benefit. This is because 5G can reduce the lag time in response, thereby enhancing the gaming experience.
The advantages that 5G offers has been leading to its expansion around the world and it is expected to grow further. According to a report by Ericsson, 5G covered about 15% of the world’s population or 1 billion people at the end of 2020. The report further mentioned that 5G is set to cover about 60% of the world’s population in 2026.
Several countries are accelerating their 5G adoption with Brazil recently announcing that it has officially approved the tender process for 5G spectrum auction, as mentioned in an RCR Wireless News article. Corporate giants are also striking deals to explore the benefits of 5G. On Jul 1, Qualcomm Technologies, Inc., a subsidiary of QUALCOMM Incorporated (QCOM - Free Report) , announced in a report its plans to collaborate with Capgemini to boost 5G private network implementations. On Apr 21, Amazon stated in a report that Amazon Web Services (“AWS”) will be forming a strategic collaboration with DISH Network as part of which the latter will leverage AWS’ infrastructure and services for building a cloud-based, 5G open radio access network.
As an outcome of the conveniences that 5G offers, 5G smartphones are also witnessing increased demand across the world. In the first quarter of 2021, global 5G smartphone shipments grew 6% over the previous quarter and reached a record 136 million units, per a report by Strategy Analytics. In fact, Strategy Analytics estimated in the report that for full-year 2021, global 5G smartphone shipments are expected to reach a record 624 million units, compared with 269 million units shipped in 2020.
5G has emerged as one the major technological advancements and it is no surprise that it will continue to expand going forward. According to a report by Gartner, worldwide 5G network infrastructure revenues are set to rise 39% in 2021. Per a report by Markets and Markets, the global 5G services market is expected to witness a CAGR of 29.4% from 2020 to 2026.
5 Stocks to Keep an Eye On
The adoption of 5G is increasing and the trend is expected to continue. This seems to be a good time to look at companies that can make the most of this market opportunity. We have selected five such stocks that carry a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Apple Inc. (AAPL - Free Report) launched its 5G range of smartphones in October 2020, namely the iPhone 12 lineup. In fiscal third-quarter 2021, iPhone sales increased 49.8% from the year-ago quarter. Sales were boosted by robust demand for the iPhone 12 lineup of devices.
Shares of Apple have gained 11.2% year to date and it currently sports a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has increased 7.9% over the past 60 days. The company’s expected earnings growth rate for the current year is 70.4%.
QUALCOMM offers its Snapdragon 5G Mobile Platforms. On Jun 28, the company announced the launch of its Snapdragon 888 Plus, which is an upgraded version of its Snapdragon 5G Mobile Platform.
Shares of this Zacks Rank #2 company have risen 6.5% over the past three months. The Zacks Consensus Estimate for its current-year earnings has increased 5.8% over the past 60 days. The company’s expected earnings growth rate for the current year is 96.7%.
Corning Incorporated (GLW - Free Report) offers 5G Enterprise Radio Access Network, which is a system that provides 5G services to enterprises and venue owners. On Aug 10, the company introduced cellular solutions to help network operators bring reliable 5G connection indoors.
Shares of Corning have risen 11.6% year to date and it currently has a Zack Rank #3. The Zacks Consensus Estimate for its current-year earnings has increased 1.9% over the past 60 days. The company’s expected earnings growth rate for the current year is 53.2%.
American Tower Corporation (AMT - Free Report) is a real estate investment trust that independently operates wireless communications towers. The company provides innovative infrastructure solutions to enable 5G.
Shares of American Tower have risen 26.2% year to date. The Zacks Consensus Estimate for its current-year earnings has increased 0.7% over the past 60 days. This Zacks Rank #3 company’s expected earnings growth rate for the current year is 12.6%.
Nokia Corporation (NOK - Free Report) provides mobile and fixed network solutions worldwide. In the second quarter of 2021, net sales of the company’s Mobile Networks segment grew 3% year over year on a constant currency basis, boosted by robust growth in 5G. On Aug 23, Nokia announced that it has been selected by A1 Telekom Austria Group for extending its 5G footprint outside of Austria into Bulgaria, Serbia, and Slovenia.
Shares of Nokia have risen 53.2% year to date and it currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings has increased 31% over the past 60 days. The company’s expected earnings growth rate for the current year is 26.7%.