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5 Top Tech Stocks to Buy as 5G Holds Solid Growth Prospects
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The world has been undergoing a radical shift lately, driven by the increasing adoption of 5G products and services.
5G, which has become more than an advanced generation of technologies, ensures robust connectivity at a lightning speed. Moreover, network connectivity is poised to be more fluid and flexible with 5G.
The technology sector, which has been gaining hugely from the rapid 5G deployment throughout the world, is making every effort to capitalize on the growth prospects associated with it. Moreover, increased demand for faster network connectivity across the world has created an opportunity for the sector’s players dealing in server processors, graphic cards, fiber-optic connections, switches and more.
Per a report from Grand View Research, the global 5G service market is expected to witness a CAGR of 46.2% between 2021 and 2028.
Further, a report from Research Dive indicates that revenues for the worldwide 5G infrastructure market will exceed $46.1 billion by 2027, witnessing a CAGR of 69.4%.
Additionally, 5G has a strong impact on the consumer market due to its direct connection with smartphones. Per a report from Research and Markets, the global 5G smartphone market is expected to grow (witnessing a CAGR of 124.9% between 2021 and 2025) and hit $823.9 billion by 2025.
Factors to Consider
The underlined technology enables seamless data transmission, increases the number of connected devices and offers lower latency, which is crucial for remote execution.
Moreover, remote working and learning, which have become the utmost need of the hour amid the pandemic, requires a network as fast as 5G. Hence, 5G has been gaining strong momentum.
Additionally, the growing proliferation of cloud-computing services amid work from home and learn from home, the increasing popularity of telehealth services, the rapid adoption of high internet-consuming gaming platforms and streaming services, and the ongoing automation drive throughout the world have helped5G gain significance.
Also, the increasing use of 5G in Internet-of-Things applications, Ultra-High-Definition videos, AI, Augmented Reality/Virtual Reality and autonomous driving remains noteworthy.
Hence, we note that 5G represents solid investment opportunities. Here are five companies, withthe potential to make the best out of the rising 5G uptake.
Year-to-Date Price Performance
Image Source: Zacks Investment Research
Cambium Networks Corporation (CMBM - Free Report) continues to deepen its focus on 5G. The company’s upcoming 28 GHz millimeter wave products for Fixed 5G wireless are likely to bolster its footprint in the booming 5G market. Notably, 28 GHz millimeter products offer backhaul for outdoor Wi-Fi access points, 4G and 5G small-cell video surveillance networks, and high-capacity, scalable residential access. The wave products are expected to be rolled out by the middle of this year.
We believe that Cambium, which sports a Zacks Rank #1 (Strong Buy) at present, will witness strong traction among customers that require higher broadband performance. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Cambium’s 2021 earnings has been revised upward by 13.4% over the past 60 days to $1.44 per share.
Corning Incorporated (GLW - Free Report) is a bright 5G stock, backed by strength in its broad portfolio of end-to-end fiber and wireless solutions for communication networks.Markedly, 5G networks need a much tighter mesh of radio antennas to support the volume of connections, low latency and connection speeds. This necessitates the use of fiber required to transmit avast amount of data.
The Zacks Rank #2 (Buy) company’s expertise in optical fiber and cable utilized in connectivity positions it well to boost the rapid deployment of access points to provide an enhanced infrastructure for the new 5G cells.
The Zacks Consensus Estimate for Corning’s 2021 earnings has been revised upward by 7.1% over the past 60 days to $2.11 per share.
Keysight Technologies (KEYS - Free Report) is benefiting from the solid demand for its 5G test and emulation solutions, which facilitate end-to-end processes from development to deployment, accelerating the 5G device architecture. Further, it is witnessing higher adoption of itsLoadCore offering, a 5G core network testing solution that simulates complicated real-world subscriber models.
Moreover, this Zacks Rank #2 company’s 5G product design validation solutions (ranging from Layer 1 to 7),which enable telecom and semiconductor companies to accelerate their 5G initiatives, remain major positives. We believe that the growing clout of the company’s offerings amid the accelerated deployment of 5G willdrive its top-line growth in the near term as well as the long haul.
The Zacks Consensus Estimate for Keysight’s fiscal 2021 earnings has been revised upward by 2.4% over the past 60 days to $5.90 per share.
Nokia Corporation (NOK - Free Report) is gaining fromits well-performing AirScale portfolio, featuring commercial end-to-end 5G solutions, which offer massive capacity scaling with ultra-low latency. Further, the growing momentum among communication service providers on the back of AirScale Radio Access products,which areknown for high-capacity mobile connectivity and reducing network complexity with low cost of ownership, is noteworthy.
Moreover, Nokia, which currently carries a Zacks Rank #2, is benefiting from 5G contracts. Recently, the company entered a five-year agreement with Net4Mobility to deploy its commercial 5G network across key regions of Sweden.
The Zacks Consensus Estimate for Nokia’s 2021 earnings has been revised upward by 26.1% over the past 60 days to 29 cents per share.
Aviat Networks (AVNW - Free Report) is riding on its multi-band transport solution for 5G. The company is gaining strong momentum across its rural broadband business on the back of growing 5G builds, which bode well for its strong efforts toward enhancing backhaul upgrades. Moreover, this Zacks Rank #2 company is well-poised to benefit from the government’s $9-billion 5G fund for Rural America on the back of its growing 5G initiatives.
The Zacks Consensus Estimate for Aviat’s fiscal 2021 earnings has been revised upward by 8.7% over the past 60 days to $2.37 per share.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Image: Bigstock
5 Top Tech Stocks to Buy as 5G Holds Solid Growth Prospects
The world has been undergoing a radical shift lately, driven by the increasing adoption of 5G products and services.
5G, which has become more than an advanced generation of technologies, ensures robust connectivity at a lightning speed. Moreover, network connectivity is poised to be more fluid and flexible with 5G.
The technology sector, which has been gaining hugely from the rapid 5G deployment throughout the world, is making every effort to capitalize on the growth prospects associated with it. Moreover, increased demand for faster network connectivity across the world has created an opportunity for the sector’s players dealing in server processors, graphic cards, fiber-optic connections, switches and more.
Per a report from Grand View Research, the global 5G service market is expected to witness a CAGR of 46.2% between 2021 and 2028.
Further, a report from Research Dive indicates that revenues for the worldwide 5G infrastructure market will exceed $46.1 billion by 2027, witnessing a CAGR of 69.4%.
Additionally, 5G has a strong impact on the consumer market due to its direct connection with smartphones. Per a report from Research and Markets, the global 5G smartphone market is expected to grow (witnessing a CAGR of 124.9% between 2021 and 2025) and hit $823.9 billion by 2025.
Factors to Consider
The underlined technology enables seamless data transmission, increases the number of connected devices and offers lower latency, which is crucial for remote execution.
Moreover, remote working and learning, which have become the utmost need of the hour amid the pandemic, requires a network as fast as 5G. Hence, 5G has been gaining strong momentum.
Additionally, the growing proliferation of cloud-computing services amid work from home and learn from home, the increasing popularity of telehealth services, the rapid adoption of high internet-consuming gaming platforms and streaming services, and the ongoing automation drive throughout the world have helped5G gain significance.
Also, the increasing use of 5G in Internet-of-Things applications, Ultra-High-Definition videos, AI, Augmented Reality/Virtual Reality and autonomous driving remains noteworthy.
Hence, we note that 5G represents solid investment opportunities. Here are five companies, withthe potential to make the best out of the rising 5G uptake.
Year-to-Date Price Performance
Cambium Networks Corporation (CMBM - Free Report) continues to deepen its focus on 5G. The company’s upcoming 28 GHz millimeter wave products for Fixed 5G wireless are likely to bolster its footprint in the booming 5G market. Notably, 28 GHz millimeter products offer backhaul for outdoor Wi-Fi access points, 4G and 5G small-cell video surveillance networks, and high-capacity, scalable residential access. The wave products are expected to be rolled out by the middle of this year.
We believe that Cambium, which sports a Zacks Rank #1 (Strong Buy) at present, will witness strong traction among customers that require higher broadband performance. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Cambium’s 2021 earnings has been revised upward by 13.4% over the past 60 days to $1.44 per share.
Corning Incorporated (GLW - Free Report) is a bright 5G stock, backed by strength in its broad portfolio of end-to-end fiber and wireless solutions for communication networks.Markedly, 5G networks need a much tighter mesh of radio antennas to support the volume of connections, low latency and connection speeds. This necessitates the use of fiber required to transmit avast amount of data.
The Zacks Rank #2 (Buy) company’s expertise in optical fiber and cable utilized in connectivity positions it well to boost the rapid deployment of access points to provide an enhanced infrastructure for the new 5G cells.
The Zacks Consensus Estimate for Corning’s 2021 earnings has been revised upward by 7.1% over the past 60 days to $2.11 per share.
Keysight Technologies (KEYS - Free Report) is benefiting from the solid demand for its 5G test and emulation solutions, which facilitate end-to-end processes from development to deployment, accelerating the 5G device architecture. Further, it is witnessing higher adoption of itsLoadCore offering, a 5G core network testing solution that simulates complicated real-world subscriber models.
Moreover, this Zacks Rank #2 company’s 5G product design validation solutions (ranging from Layer 1 to 7),which enable telecom and semiconductor companies to accelerate their 5G initiatives, remain major positives. We believe that the growing clout of the company’s offerings amid the accelerated deployment of 5G willdrive its top-line growth in the near term as well as the long haul.
The Zacks Consensus Estimate for Keysight’s fiscal 2021 earnings has been revised upward by 2.4% over the past 60 days to $5.90 per share.
Nokia Corporation (NOK - Free Report) is gaining fromits well-performing AirScale portfolio, featuring commercial end-to-end 5G solutions, which offer massive capacity scaling with ultra-low latency. Further, the growing momentum among communication service providers on the back of AirScale Radio Access products,which areknown for high-capacity mobile connectivity and reducing network complexity with low cost of ownership, is noteworthy.
Moreover, Nokia, which currently carries a Zacks Rank #2, is benefiting from 5G contracts. Recently, the company entered a five-year agreement with Net4Mobility to deploy its commercial 5G network across key regions of Sweden.
The Zacks Consensus Estimate for Nokia’s 2021 earnings has been revised upward by 26.1% over the past 60 days to 29 cents per share.
Aviat Networks (AVNW - Free Report) is riding on its multi-band transport solution for 5G. The company is gaining strong momentum across its rural broadband business on the back of growing 5G builds, which bode well for its strong efforts toward enhancing backhaul upgrades. Moreover, this Zacks Rank #2 company is well-poised to benefit from the government’s $9-billion 5G fund for Rural America on the back of its growing 5G initiatives.
The Zacks Consensus Estimate for Aviat’s fiscal 2021 earnings has been revised upward by 8.7% over the past 60 days to $2.37 per share.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>