U.S. Markets closed

Are 5G Stocks Worth the Hype? This Chart Says It All

Matt McCall

Every once in a while, a stock chart just reaches out and grabs you. The trend is so strong that it compels you to pay attention. I recently had one of those moments with 5G stocks, so I wanted to share it now.

This particular chart highlights a trend that debunks one of the biggest myths I’m hearing right now – the one that says, “the market is doomed, everyone’s selling off, and if you haven’t yet, then you should, too.”

If that were true, why are these “random” stocks going absolutely wild compared to the broader market?

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

As you can see in the one-year chart below, they’re racking up 30%, even 50% gains… during a time period when the S&P 500 (the orange line at the bottom) is flat.

Are 5G Stocks Worth the Hype? This Chart Says It All

I call them “random” stocks because Crown Castle International (NYSE:CCI) and American Tower Corp. (NYSE:AMT) are likely not top-of-mind for many investors. They’re not the kind of stocks that folks like me usually get called to discuss on TV. (But with performance like that, they should.)

But these are NOT “random” stocks. In fact, they’ll be crucial in implementing 5G wireless, one of the biggest revolutionary technologies that’s just taking off now and is set to explode into the 2020s.

Crown Castle and American Tower are real estate investment trusts (REITs) specializing in telecom services. In other words, they often play landlord to companies like Verizon (NYSE:VZ), AT&T (NYSE:T), T-Mobile (NASDAQ:TMUS), and Sprint (NYSE:S). At this point, that’s basically the whole industry. And these telecom REITs help provide cell towers, plus newer technology called “small cells,” as well as the fiber-optic cables that run out to customers.

Are cell towers a growth industry? Absolutely. And that’s because people’s usage of mobile data is skyrocketing. In 2018, the average smartphone in North America used 7 gigabytes per month. In 2024, that’ll be more like 40 gigabytes per month, according to a June report from Ericsson (NASDAQ:ERIC).

That’s nearly 6X growth in just six years.

Crown Castle CEO Jay Brown cited that stat when giving his 2019 guidance on new-leasing activity. In the July earnings report, Brown announced that his company expects a 30% increase in tower leasing, year-over-year.

But this is a much bigger story than Crown Castle, American Tower, or any other individual 5G stocks.

At Investment Opportunities, I’ve really been digging into the 5G mega-trend — and you can bet I’ll continue to do so. The closer I look, the more opportunities I find… some that you might never expect.

Keep in mind that when we talk about 5G, we’re talking about speed. Taking devices that don’t look much different than the ones we use now… and transforming them into something exponentially faster and more powerful.

With 5G, you will be able to download a movie in six seconds. Today it takes seven minutes with the current 4G technology.

Now, here in the United States — in tech strongholds like San Francisco and wealthy suburbs like Montgomery County, Maryland — homeowners aren’t too thrilled when Crown Castle or Verizon come to their neighborhood to put up a cell tower. (Or add to an existing one, like with the 5G buildout.)

I get it, but these folks aren’t seeing the big picture. They just see a big gray box. Ultimately, though, 5G is coming — and it’ll take us to the next level of wireless communications. Not just for consumer products, like our iPhones, but for industrial applications, advanced medicine, and even transportation. If we’re talking about self-driving cars, we’re talking about a lot of data that needs relayed back and forth in an instant.

The speeds 5G provides will be the catalyst for just about every other game-changing technology that’s coming down the pike. And the more people realize that, the more they’ll start to notice stock charts like the one above.

This is what I’m talking about when I say: The market is full of buying opportunities right now. Yes, right now.

P.S. What are some of these game-changing technologies I’m looking at?

Besides self-driving cars, there are electric cars in general (which are being adopted at a phenomenal rate)…

There are tons of other connected devices — a whole Internet of Things…

There are smart medical devices, leading to precision healthcare…

And artificial intelligence…

No wonder data usage is taking off into the stratosphere.

And guess what? All those devices need to be powered.

Unfortunately, the current technology has some pretty severe limitations. But new technology is emerging to replace it — one that’s safer AND more powerful.

Click here to learn more and prepare to ride this trend higher in your portfolio.

Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now.

More From InvestorPlace

The post Are 5G Stocks Worth the Hype? This Chart Says It All appeared first on InvestorPlace.