Complete guide to 5G
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.
5G stock info
Current price: 195.92 GBX ($2.46)
Market cap: £19.36bn ($24.3bn)
Year high: 268.60 GBX ($3.32)
Year low: 157.67 GBX ($1.95)
P/E ratio: 7.3
Dividend yield: 8.5%
Hot 5G stock: BT
BT (LSE: BT.A) is currently underperforming the market year-to-date. However, many share the sentiment that the stock could be on the road to recovery. BT shares jumped 8% in September and could be well placed to profit from the 5G revolution. At face value, the stock looks very tempting indeed with a forward P/E of just 7.3 and a healthy dividend yield of 8.5%. These figures are backed up by a solid 5G rollout plan and the stronger focus on customer experience.
This week, BT announced the new BT Halo plan, a package that offers superfast broadband with unlimited 5G. It has also switched on its 5G network in 20 cities and has launched 5G mobile plans. Paired with the new focus on customers by transforming 600 EE stores into dual-branded BT/EE stores across the UK, will see help at hand for almost 95% of the population.
The well-planned 5G rollout and the focus on making customers happy could suggest that BT’s new service will make a lot of money. The dividend yield will keep investors making money in the meantime.
5G stock info
Current price: $230.09 (£182.81)
Market cap: $1.04T (£794.4bn)
Year high: $230.44 (£183.08)
Year low: $142 (£112.82)
P/E ratio: 18.8
Dividend yield: 1.34%
Hot 5G stock: Apple
Apple (NASDAQ: AAPL) has had a tough time in China recently, with declining smartphone sales, but it seems that the tide has turned. The iPhone 11 has told a different story with pre-orders on Chinese platform JD.com up 480% compared to the iPhone XR. This also marks a 335% increase in iPhone 11 sales as compared to last year's devices.
It’s important to note that the iPhone 11 lacks 5G, so what will Apple’s sales look like when 5G does become a factor? Apple seems to have plans to bring an affordable 5G phone to the market this year. Considering that it purposely made the iPhone 11 affordable, suggests that we could see similar, if not more, popularity with its 5G iPhone.
We could see Apple taking a huge share of China’s 5G market next year and it could be wise for investors to buy before 2020.
5G stock info
Current price: 1,237 GBX ($15.56)
Market cap: £805m ($1bn)
Year high: 1,880 GBX ($23.65)
Year low: 885 GBX ($11.13)
P/E ratio: 61
Dividend yield: N/A
Hot 5G stock: Keywords Studios
Keywords Studios (LSE: KWS) is a stock likely to grow from the world of 5G, that some may overlook. The video game industry stock will hugely benefit from faster network speeds, which will make gaming more accessible to all. Keywords' value has soared a staggering 400% from September 2016 to August 2018. This tells us that it’s a steadily growing company.
The company stated that H1 revenue was set to be around 39% higher to €153m with pre-tax profits also up 15% higher than the previous year. But there’s more, Keywords annual earnings per share have risen a significant 49% in the past three years.
All of this leads many investors to believe that the stock will sky-rocket when 5G hits worldwide. Gaming will be faster, more innovative and popular than ever before. Keywords Studios is perfectly placed to benefit.
5G stock info
Current price: $8.24 (£6.55)
Market cap: $25.32bn (£20.1bn)
Year high: $10.46 (£8.32)
Year low: $7.58 (£6.03)
P/E ratio: 15
Dividend yield: 1.31%
Prediction: Ericsson could lead 5G
Ericsson (NASDAQ: ERIC) has been making waves already, scoring huge deals with Telia Norway and KDDI to supply them with 5G networks. This puts it at the forefront of 5G supply and places it as a big player in the industry.
Ericsson could be set to profit hugely in China. The country could invest between $130 billion and $218 billion in building 5G networks between 2020 and 2025. While Huawei usually gets preference, Ericsson hasn’t been shy about making its presence known. In fact, Ericsson has already picked up a third of China Mobile’s 5G network contracts.
The numbers are looking strong too, with a 7% increase in revenue in the second quarter of 2019. Total sales in the first half of 2019 have increased by 11.2%. Securing more 5G contracts will continue to boost Ericsson and with a healthy P/E ratio of 15, we could see some impressive earnings growth.
5G stock info
Current price: $41.84 (£33.07)
Market cap: $856.69bn (£676.5bn)
Year high: $55.84 (£44.13)
Year low: $39.77 (£29.06)
P/E ratio: 10
Dividend yield: 4.4%
BREAKING: China Mobile bags 5.32 million subscribers
China Mobile (NYSE: CHL) has managed to secure 5.32 million 5G subscribers, despite the network not even being live yet. Being the largest wireless carrier in China, it serves over 930 million mobile customers and nearly 170 million wireline customers.
The dividend yield of 4.4% also promises investors a regular, reliable income. After shares sliding 20%, the carrier could be back on track as 5G generates more contracts and income. Despite the trade war, the stock is fighting back with operating revenue rising 2% and its net profit growing 3%.
It’s worth keeping an eye on the company as 5G becomes a major factor in the market. A huge company like this is perfectly placed to benefit.