Complete guide to 5G
5G technology: how it works
4G vs 5G: how they compare
5G use cases: examples of 5G
5G Dangers: the fact and fiction
5G Internet: will it replace fibre
5G security: the full picture
5G speed: guide and tools
5G deals: get the best offers
5G phones: discover the best
5G networks: in the US and UK
5G stocks are generating interest amongst investors. The fifth generation of mobile network technology is now upon us, promising to bring stable connections and much faster data downloads. Whatever your smartphone can do now, 5G technology promises to do it much faster and better.
The new network technology has arrived on a small scale already, but is set to launch fully in 2020. Much like 4G, 5G will certainly become the industry standard eventually - which is big news for the stock market. Currently, the 5G market is valued at $131bn (£106bn), with analysts predicting growth of 111% over the next five years.
5G stocks prices are on the up
The launch of 5G will affect a huge number of companies, from mobile networks, to healthcare and gaming. This will consequently boost the stock market as 5G brings new opportunities and revenue streams for companies. 5G stock prices are likely to soar and investors will be reaping the benefits as 5G continues to grow.
However, politics, company acquisitions and the economy can all have a huge impact on the performance of these 5G stocks. What if consumers aren’t keen to make the move to 5G or the government places restrictions on certain companies? Thankfully, we are here to bring you all of the latest news on 5G stocks so you can keep an eye on the market.
5G stock info
Current price: $232.46 (£177.83)
Market cap: $102.98bn (£78.7bn)
Year high: $242 (£185.13)
Year low: $162.83 (£124.56)
P/E ratio: 64
Dividend yield: 1.74%
Hot 5G stock: American Tower Corporation
American Tower Corporation (NYSE: AMT) is an owner and operator of wireless infrastructure. This company has an impressive $102.98bn (£78.7bn) market cap and a huge global footprint. AMT owns over 170,000 telecom infrastructure sites, and so is perfectly placed to benefit from 5G.
AMT stock rose this week by nearly 2% after the it was upgraded to ‘Buy’ by Goldman Sachs, as they see rapid growth from expanding 5G coverage. This week has also seen huge stock price target hikes from multiple analysts. KeyCorp boosted its target from $242 (£185) to $254 (£194), whilst Cowen lifted their target price from $238 (£182) to $260 (£198). Analysts have positive sentiments about the stock, mostly likely due to the oncoming boost from 5G.
And the future looks bright for the American Tower Corporation as demand grows for 5G infrastructure.
5G stock info
Current price: $313.38 (£239.60)
Market cap: $1.36T (£1T)
Year high: $317.57 (£242.80)
Year low: $149.22 (£114.12)
P/E ratio: 26
Dividend yield: 1%
Hot 5G stock: Apple
Apple (NASDAQ: AAPL) is expected to be the biggest winner in the boom of 5G smartphones this year. The rumours suggest that all iPhones released this year will be 5G-enabled, with two budget friendly options. The cheaper options could prove to be a huge success for Apple, as many who can’t usually afford 5G will be able to experience it.
Apple is unsurprisingly expected to dominate the 5G market with predictions suggesting that the company could ship 80 million 5G smartphones in 2020. Analysts also forecast huge growth for the Apple stock in 2020 thanks to the 5G boost which could bring significant returns for investors.
5G stock info
Current price: $8.16 (£6.24)
Market cap: $656.55m (£502m)
Year high: $8.95 (£6.84)
Year low: $3.61 (£2.76)
Dividend yield: N/A
Hot 5G stock: Inseego
Inseego Corporation (NASDAQ: INSG) is a company that specialises in mobile solutions for IoT systems. The company provides routers that enhance device-to-cloud capability, putting it at the forefront of faster 5G capable connectivity. Inseego introduced the first commercially available 5G mobile broadband hotspot last year.
Thanks to its involvement in 5G, Inseego shares rose a staggering 76% in 2019, with a strong revenue gain in Q4 of last year. The Q3 earnings report showed a top-line revenue of $62 million (£47 million) which was 5.4% higher than predictions. Year-over-year, the gain was even stronger, at 23.8%.
Northland Securities’ analyst Michael Latimore took note of Inseego scoring a contract with Vodaphone. He wrote: “Inseego has stacked up numerous wins, esp. for 5G hotspots and home routers, the most recent being a division of Vodafone. Vodafone has numerous operating entities that could launch with Inseego eventually. Other operators are prospects too across most geographies. Enterprise SaaS is turning for the better…”
Inseego’s current share price should be a tempting buy for many investors, and could skyrocket further as 5G growth increases this year.
5G stock info
Current price: $91.71 (£70.16)
Market cap: $105bn (£80.32bn)
Year high: $94.11 (£72)
Year low: $49.10 (£37.56)
P/E ratio: 25
Dividend yield: 2.7%
Prediction: Qualcomm could be underpriced
Qualcomm (NASDAQ: QCOM) is set to benefit significantly from the 5G boom, with 750 million smartphones to be shipped by 2022. However, many believe that the growth prospects from 5G haven’t yet been priced into the Qualcomm stock, making it a good prospect for investors.
Bank of America analyst Tal Liani has already reiterated his buy rating on Qualcomm, raising the price target to $100 (£76.50) a share, citing opportunities with Apple’s 5G devices. Liani also said, “if all iPhone models include 5G capabilities, Apple could contribute nearly $4 billion in cumulative sales to Qualcomm by fiscal year 2022.”
Qualcomm expects smartphone manufacturers to ship up to 450 million 5G handsets in 2021, and another 750 million in 2022. As a result, Qualcomm will benefit, because these phones will need 5G-ready chips. With the 5G boom just beginning to gain momentum, 2020 could be a huge year for the potentially undervalued stock.
5G stock info
Current price: ¥3.21 ($0.47/£0.36)
Market cap: ¥2.72bn ($395m/£302m)
Year high: ¥5.39 ($0.78/£0.60)
Year low: ¥2.49 ($0.36/£0.28)
Dividend yield: 1.56%
BREAKING: Huawei sold more 5G phones than Samsung in 2019
Huawei (SHE: 002502) sold 6.9m phones last year, despite the trade war and allegations of state intervention from the U.S. A number of countries have already banned Huawei’s equipment from being used in the implementation of 5G networks, but this doesn’t seem to have pushed customers away from the company’s devices. Huawei is already dominating the 5G phones market with competitor Samsung falling in just behind, having shipped 6.7 million devices last year.
Huawei is entering 2020 in a strong position in the 5G market, which is more than the company could wish for, considering its circumstances and how it’s being presented to the world by the U.S. government.
Many investors will be keeping an eye on the stock in the coming months to see whether it can continue the strong momentum.
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