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: $128.19 (£97.82)
Market cap: $21.84bn (£16.66bn)
Year high: $128.33 (£97.93)
Year low: $66.29 (£50.58)
P/E ratio: 25
Dividend yield: 1.37%
Hot 5G stock: Skyworks Solutions
Skyworks Solutions (NASDAQ: SWKS) has some solid figures behind it with a market cap of $21.84 billion, a price-earnings ratio of 26.24 and absolutely no debt. On top of this, the semiconductor company is in the ideal position to benefit as 5G continues its roll-out.
Furthermore, Skyworks Q1 2020 earnings and revenues have already surpassed estimates. Quarterly earnings of $1.68 per share beat estimates of $1.65 per share. This compares to earnings of $1.83 per share a year ago. The company posted revenues of $896.10 million for the quarter ended December 2019, surpassing the Zacks Consensus Estimate by 1.80%.
Skyworks has already outperformed the market in 2020 and we should see this growth continue to gain momentum as 5G rolls-out this year. Investors will be watching closely to see how Skyworks Solutions takes its growth from here.
5G stock info
Current price: $319.23 (£243.67)
Market cap: $1.4T (£1T)
Year high: $319.99 (£244.25)
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 phones this year, with predictions suggesting that the company could ship 80 million 5G smartphones in 2020. And the stock is already in record high territory, without even having released its 5G devices yet.
Wall Street analysts are having to raise their estimates to keep up with Apple’s growth. UBS analyst Timothy Arcuri said anticipation for 5G phones will work in the company's favour. He reiterated a buy rating on Apple shares and raised the price target to $355 (£271).
Canaccord Genuity analyst Michael Walkley believes that the Apple stock could rise further from a low-cost iPhone. He said, "We are also encouraged by the strong demand for the iPhone 11 lineup and believe Apple will maintain its market share leadership of premium-tier smartphones that could be bolstered by a 5G upgrade cycle."
The strong anticipation for the 5G iPhone has already boosted the stock, giving analysts a bullish view for the rest of the year.
5G stock info
Current price: $57.48 (£43.89)
Market cap: $284bn (£216.9bn)
Year high: $60.64 (£46.31)
Year low: $36.24 (£27.67)
P/E ratio: 25
Dividend yield: 2.86%
Hot 5G stock: Taiwan Semiconductor Manufacturing
Taiwan Semiconductor Manufacturing (NYSE: TSM) is the largest independent semiconductor company in the world.
Over the past three years, Taiwan Semiconductor has grown its revenue at a rate of 6.9% per year and its earnings per share at a rate of 6.2% per year. Year-to-date, the share price has grown approximately 67%.
This steady and consistent growth has attracted the attention of many investors.
Adding to its overall expertise in semiconductor production, the company also has a very strong position in the smartphone components market. This expertise means that Taiwan Semiconductor Manufacturing is in a perfect position to deliver high profits from 5G over the next 12 months and beyond.
5G stock info
Current price: ¥2.99 ($0.43/£33)
Market cap: ¥2.57bn ($370m/£282m)
Year high: ¥5.39 ($0.78/£0.59)
Year low: ¥2.49 ($0.36/£0.27)
Dividend yield: 1.67%
Prediction: Huawei could have its foot in the door
Huawei (SHE: 002502) could be much more integrated into the UK’s 5G networks as the country prepares to offer the company a “limited role” in its 5G networks.
Reuters quoted “two people with knowledge of the matter” saying that Huawei will have a “limited role” in the roll-out of 5G for the country’s four MNOs (mobile network operators).
If the UK defies the advice coming from the U.S. this would be huge news for the Chinese telecoms equipment company, and the UK taking this option could also help other countries – currently facing the same dilemma – make a call on Huawei’s involvement
Despite this ongoing saga, Huawei still managed to sell more 5G phones than Samsung in 2019. So if it wins back the trust of major countries, we could see even more impressive results in 2020.
5G stock info
Current price: $8.98 (£6.86)
Market cap: $27.59bn (£21bn)
Year high: $10.46 (£7.99)
Year low: $7.58 (£5.79)
Dividend yield: 1.2%
BREAKING: Ericsson claims “there is no one ahead of us", but earnings don't impress
Ericsson (NASDAQ: ERIC) CEO Borje Ekholm expressed extreme confidence in his company’s role in 5G, claiming that “there is no one ahead of us”. Ekholm believes that Europe can operate without Huawei but Ericsson is by no means getting a “free ride” because of Huawei bans.
However, whilst Ericsson may have confidence in its performance, the company’s latest Q4 earnings haven’t blown away investors. Shares dropped an excessive 8% on the day the results were revealed, with U.S. sales slumping, and low margins hitting the company’s bottom line.
Despite this, Ericsson still decided to boost the dividend by 50%, which is somewhat of a bold move. It appears that the company remains confident that its 2020 performance – bolstered by further 5G contracts – will impress.
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