The fifth generation of mobile network technology is almost 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.
Current price: $50.44 (£40.50)
Market cap: $55.68bn (£44.7bn)
Year high: $51.39 (£41.26)
Year low: $28.39 (£22.80)
P/E ratio: 4.44
Dividend yield: N/A
Hot 5G stock: Micron
Micron Technology (NASDAQ: MU) seems poised to surge this year as analysts predict a bright future for the company. It is believed that microchip demand will exceed expectations due to 5G.
In fact, Micron shares have surged a huge 55% this year due to the chip-industry recovery. The long-term outlook for the company is certainly a strong one which is why investors are getting in early before the stock price soars even higher.
The overall consensus amongst analysts is to buy shares in Micron. The rise in demand for both AI and 5G will have a positive knock-on effect for the company.
Current price: 161.98 GBX ($2.02)
Market cap: £43.35bn ($53.9bn)
Year high: 171.78 GBX ($2.12)
Year low: 122.22 GBX ($150)
P/E ratio: 32
Dividend yield: 5.01%
Hot 5G stock: Vodafone
Vodafone (LSE: VOD) may be recovering from a harsh few years, with increased capital expenditure required to install its Vodafone 5G infrastructure. This process is ongoing, but Vodafone's early commitment to 5G should see them benefiting ahead of most competitors. Furthermore, Vodafone’s plans to create Europe’s largest tower company sent the stock soaring over 10% higher in just one day.
Once 5G officially kicks in, analysts are predicting a 77% rise in earnings-per-share for the company in 2020.
Vodafone may have cut its dividends by 40% but this could potentially be a wise move to boost the balance sheet and invest more into 5G technology.
Vodafone could be a top player in the 5G market and investors are certainly keeping a close eye on it.
Current price: €4.71 (£4.20/$5.23)
Market cap: €26.54bn (£23.6bn/$29.4bn)
Year high: €5.74 (£5.15/$6.34)
Year low: €4.17 (£3.74/$4.60)
P/E ratio: 19.61
Dividend yield: 0.89%
Hot 5G stock: Nokia
Nokia (HEL: NOKIA) appears to be extremely well positioned to profit from the upcoming 5G revolution.
Nokia is somewhat a sleeping giant when it comes to telecoms, many investors overlook the company despite its strong earnings for the second quarter this year. The company has won a few contracts to roll out 5G in various countries and is ready to go with the new technology.
In fact, only Huawei and Nokia have full end-to-end portfolios that include wireless, fixed networks, and IP routing solutions.
And with all of the security concerns surrounding Huawei, Nokia is one of the only global suppliers offering end-to-end 5G products.
Current price: $14.01 (£11.25)
Market cap: $3.01bn (£2.4bn)
Year high: $20.61 (£16.55)
Year low: $12.66 (£10.17)
P/E ratio: 19.46
Dividend yield: N/A
Prediction: FireEye will bounce back
FireEye (NASDAQ: FEYE) is a cybersecurity company that has had a tough few years.
However, in December last year, the company benefitted from continued sales growth which saw shares soaring a huge 90% from 2017. Sadly, this growth wasn’t to continue as shares have fallen 30% since the highs of December.
So, why predict a growth? The fall in price might provide an opening for investors to buy stocks before 5G hits and while they are cheap.
The stock could certainly be considered to be undervalued and it’s likely we will see profits grow thanks to the launch of 5G.
Current price: $223.08 (£179.18)
Market cap: $1.01t (£803bn)
Year high: $233.47 (£187.52)
Year low: $142 (£113.25)
P/E ratio: 19
Dividend yield: 1.38%
Investment news: Apple holding back on 5G
Apple (NASDAQ: AAPL) have announced that the iPhone 11 won’t support 5G. However, with the company launching 5G in 2020, now could be a wise time to invest. Whilst Apple shares got take a hit this year due to the lack of 5G, the company could benefit hugely by waiting for next year.
Apple will have time to observe other providers and what mistake they make with 5G. It will also be able to improve its 5G service before releasing it to the public. This will result in a far superior 5G service that certainly won’t feel rushed. Therefore, it’s my prediction that investors should consider buying shares now to benefit in the long run. Also, people who are on the fence about 5G are still very likely to buy the iPhone 11, it’s unlikely to be a deal-breaker for many.