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5 Stocks to Ride the 5G Boom in America

Zacks Equity Research

In recent years, people across the world have demanded faster downloading speed and uninterrupted network, which 5G technology is about to provide very soon. The recent boom in 5G technology will reap profits for telecommunication companies and smartphone developers as people dump old technology to receive upgraded services.

As 5G advances, investors can take advantage of the changing tides and make some profit. Here’s how –  

Boom of 5G Phones

What if you have access to the fastest Internet connection but your smartphone cannot use it? Majority of the population will dump their old phones and buy a new upgraded one. The same is the future of all 4G phones. If not for the ban on Huawei the advancement of 5G in The United States would have been faster.

But, things are not as slow as we think. Verizon Communications VZ has the capability to offer 5G services to parts of New York City right now and it will cover 30 more cities by the end of 2019. Top Internet service providers like T-Mobile US, Inc. TMUS and AT&T Inc. T are gearing up to offer 5G across the United States. But the million dollar question remains: are the devices compatible to use the fastest connection to date? Are people ready to pay more?

Samsung, the dominator in smart phone market has already launched Samsung Galaxy S10 in February 2019, which is 5G enabled. Huawei (though blacklisted in America) has launched Huawei Mate X this year and the iPhone makers are all set to launch their 5G phone by the mid of next year. In fact, Nokia is also trying its best to roll out a 5G multi-band network in the United States using the commercial Nokia 5G solutions with the help of T-Mobile.

As soon as the 5G services begin, people will drop their old 4G phones and start buying 5G enabled smartphones giving a boost to Samsung, Apple and Huawei (provided the ban is lifted). The ultra-fast downloads will surely attract consumers making them pay high to gain access to better downloading speed.

Winner in the Long Run

Two industries are going to benefit once 5G hits the floor, and they are the technology and communication providers, and smartphone developers. For the deployment of 5G networks, a massive 5G infrastructure needs to be set up. Here companies like Keysight Technologies KEYS, Qorvo QRVO and Xilinx, Inc. XLNX can reap high profits, as these have access to products needed for 5G infrastructural development.

Bridging the gap in the global market, companies like Telefonaktiebolaget LM Ericsson ERIC are planning to set up factory in Texas to fulfill increased demand for 5G deployment across the United States. On the other hand, service providers like Verizon, T-Mobile, and AT&T will reap profits as people start subscribing to 5G services.

Looking forward to a bright future that 5G is expected to bring we have shortlisted five stocks that flaunt Zacks Rank #1 (Strong Buy) and 2 (Buy) that will boost your portfolio.

DASAN Zhone Solutions, Inc. DZSI is a publicly traded company that offers broad-based network access solutions. Dasan’s expected earnings growth rate for the current year is 225%, higher than the industry’s projected rally of 34.8%. The Zacks Consensus Estimate for current-year earnings has improved 38.3% over the past 60 days.

Dasan sports a Zack Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Keysight Technologies, Inc. is a publicly traded company that provides electronic measurement solutions to the communications and electronics industries. Keysight’s expected earnings growth rate for the current year is 41.7%, higher than the industry’s projected rally of -16%. The Zacks Consensus Estimate for current-year earnings has improved 8.5% over the past 60 days. Keysight has a Zack Rank #1.

RingCentral, Inc. RNG is a publicly traded company that provides solutions for business communications primarily in the United States. RingCentral’s expected earnings growth rate for the current year is 1.3%, which matches the industry’s projected rally. The Zacks Consensus Estimate for current-year earnings has improved 6.8% over the past 90 days. RingCentral sports a Zack Rank #1.

TiVo Corporation TIVO is a publicly traded company that provides digital home entertainment services and solutions. TiVo’s expected earnings growth rate for the current year is 10.7%, above the industry’s projected rally of 2.8%. The Zacks Consensus Estimate for current-year earnings has improved 12.2% over the past 90 days. TiVo sports a Zack Rank #1.

T-Mobile US, Inc. is a publicly traded company that provides mobile communications services. T-Mobile’s expected earnings growth rate for the current year is 21.4%, above the industry’s projected rally of 15.7%. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the past 60 days. T-Mobile carries a Zack Rank #2.

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Ringcentral, Inc. (RNG) : Free Stock Analysis Report
 
Qorvo, Inc. (QRVO) : Free Stock Analysis Report
 
Ericsson (ERIC) : Free Stock Analysis Report
 
DASAN Zhone Solutions, Inc. (DZSI) : Free Stock Analysis Report
 
AT&T Inc. (T) : Free Stock Analysis Report
 
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
 
TiVo Corporation (TIVO) : Free Stock Analysis Report
 
Keysight Technologies Inc. (KEYS) : Free Stock Analysis Report
 
T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
 
Xilinx, Inc. (XLNX) : Free Stock Analysis Report
 
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