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5 Stocks Set to Gain From the Ongoing 5G Boom

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·5 min read
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5G has emerged as one of the next big things in the world of technology and its adoption around the world continues to grow. But why is 5G rapidly gaining precedence? The primary reason behind this is the faster speed that 5G connectivity offers. Notably, with the help of 5G, users can access or download files at a much faster pace, leading to a reduction in waiting time.

Another advantage that 5G has is lower latency in comparison to 4G. This means that the response time for any action undertaken is significantly reduced, making it more convenient to carry out remote tasks. This lower latency also stands to be useful to gamers, especially when they are engaged in multiplayer or other competitive games, as high latency affects the gaming experience.

Lower latency should also provide a boost to cloud gaming as these games are hosted on remote servers and have to be streamed on the user’s device. 5G should lead to lesser delays in responses. Faster speed and lower latency will allow for a more immersive experience in augmented and virtual reality.

Moreover, 5G will provide a significant boost to the application of the Internet of Things as more connected devices can be used within the network. Connected devices can share data and communicate with each other in real-time and allow concepts like smart homes, self-driven cars, or even smart cities to flourish.

Reflective of the positive developments that 5G is set to bring, it is no surprise that this market is expected to grow in the future. In fact, per a report by Grand View Research, the global 5G services market is estimated to witness a CAGR of 46.2% from 2021 to 2028.

Meanwhile, owing to the increased demand, the adoption of 5G smartphones is anticipated to grow around the world. Notably, a report by the International Data Corporation estimated 5G shipments to grow nearly 130% in 2021, with almost all regions outside of China, set to witness triple-digit growth by the end of 2021. Meanwhile, a separate report by Research and Markets stated that the global 5G smartphone market is set to witness a CAGR of 124.89% from 2021 to 2025, as cited in a GlobeNewswire article.

5 Stocks to Keep an Eye On

The adoption of 5G seems poised to grow, thanks to the many conveniences it offers like faster speed and lower latency. Moreover, the 5G smartphone market is expected to grow around the world. Hence, this seems like an opportune moment to watch out for companies with sound fundamentals that can make the most of this uptrend. Notably, we have selected five such stocks that carry a Zacks Rank #2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Apple Inc. AAPL manufactures and markets smartphones, personal computers, tablets, wearables and accessories worldwide and the company launched its 5G range of smartphones in October 2020, namely the iPhone 12 lineup. Apple currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 15.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 57.6%.

Corning Incorporated GLW is offering the 5G Enterprise Radio Access Network, which is an easy-to-install system that provides enterprises and venue owners with 5G services. Moreover, Corning’s leadership in optical fiber and cable as well as in connectivity is helping in the rapid deployment of access points to serve 5G cells. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 7.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 51.8%.

QUALCOMM Incorporated QCOM offers its Snapdragon 5G Mobile Platforms that make smartphones 5G compatible. The company currently has a Zacks Rank #3. The Zack Consensus Estimate for its current-year earnings increased 6.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 85.9%.

American Tower Corporation AMT is a real estate investment trust and its shared wireless infrastructure solutions are supporting the new 5G applications. American Tower currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 1.2% over the past 60 days. The company’s expected earnings growth rate for the current year is 11.6%.

Verizon Communications Inc. VZ offers 5G Nationwide and 5G Ultra Wideband network for delivering 5G experience. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 0.6% over the past 60 days. The company’s expected earnings growth rate for the current quarter is 8.5%.

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American Tower Corporation (AMT) : Free Stock Analysis Report
 
Verizon Communications Inc. (VZ) : Free Stock Analysis Report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
Corning Incorporated (GLW) : Free Stock Analysis Report
 
QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report
 
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