Source: Fit Ztudio / Shutterstock.com
As the global technology landscape accelerates, 5G technology remains at the forefront of this transformation. Despite market volatility, 5G stocks remain key investments for those looking to ride the next wave of digital evolution. The upcoming rollout of more comprehensive 5G services across sectors marks a pivotal moment for investors.
Globally, 5G technology is expected to grow from $24.7 billion in 2023 to $84.8 billion by 2033, growing at a staggering CAGR of 125.32%. While North America held the top market share as of 2023, Asia Pacific is expected to grow fastest during the forecast period.
In this climate, missing out on our handpicked 5G stocks could mean missing out on a major advantage in future technology. Here, we present three 5G stocks that are poised to survive and thrive in the technology revolution, and provide compelling reasons why adding them to your portfolio now could help prevent future regret.
Verizon (VZ)
Image source: Shutterstock
Verizon (New York Stock Exchange:VZ) is performing commendably in the competitive and rapidly evolving communications industry. The company has been at the forefront of the rollout of 5G technology. In a recent financial report, Verizon highlighted its continued expansion into new markets and upgrading of its existing infrastructure. This aggressive approach in the 5G space has strengthened the company’s market position and laid the foundation for future revenue streams.
As of its latest quarter ending in March 2024, Verizon reported revenue of $32.98 billion, slightly below consensus estimates. However, the company still maintains a stable financial position. Despite slightly missing revenue expectations, Verizon’s adjusted EPS of $1.15 was $0.03 above expectations, indicating effective cost management and operational efficiencies.
Additionally, Verizon’s efforts to improve its capital structure, as evidenced by a significant reduction in its long-term debt, are aimed at achieving a more balanced balance sheet and reducing financial risk. Verizon’s current dividend yield of over 6% makes it an attractive option for investors.
AT&T (T)
AT&T (New York Stock Exchange:T) is a leading company in the telecommunications industry. Over the past year, the company has been successfully executing its growth strategy, especially in expanding its fiber optic network and enhancing its mobile services.
AT&T has reported modest but stable financial performance with notable strategic moves that highlight the potential for sustained growth. While total revenue for the first quarter of 2024 declined slightly, down 0.4% year over year, to $30.02 billion, the company’s focus on higher-margin areas such as fiber and mobile services is encouraging. The company has been successful in gaining 252,000 new fiber customers and 349,000 mobile subscribers, indicating strong market demand for its services.
AT&T has a cautious capital allocation strategy, focusing on reducing debt while investing in growth areas like 5G and fiber optics. The company’s disciplined approach to capital spending and debt management is evident in its declining net debt-to-adjusted EBITDA ratio, which improved to 2.76x in the first quarter of 2024.
Qualcomm (QCOM)
Qualcomm (Nasdaq:QCOM) designs and sells wireless communication products and services.
The company’s Snapdragon platform is at the heart of its 5G business, which includes a family of mobile processors and modem chipsets that enable the high-speed, low-latency communications needed for 5G connections.
Qualcomm reported strong financial results for the second quarter of fiscal 2024, with revenue reaching $9.4 billion, slightly beating market expectations. This demonstrates the company’s ability to maintain consistent revenue growth despite market-wide challenges. Qualcomm’s profit margins show impressive improvement, indicating efficient operations and a promising revenue outlook.
The company’s strategic focus on integrating AI into its chipsets has established it as a major player in AI technology. For example, the Snapdragon 8 Gen 3 Mobile Platform has played a key role in driving AI adoption in smartphones and improving user experience through increased processing power and efficiency. This move is both technologically significant and timely as global demand for smarter AI-powered devices continues to grow.
On the date of publication, Mohammed Saqib did not have (either directly or indirectly) any positions in the securities mentioned in this article. Opinions expressed in this article are solely those of the author, copyright InvestorPlace.com. Publication Guidelines.
