5G Stocks: Reasons for Excitement

Our theme of

Over three years since the U.S. carriers began their 5G rollout in earnest, there remains considerable room for growth for the technology, for a couple of reasons. While initial deployments of 5G in the U.S. were focused on high-band spectrum, over two auctions conducted in January 2021 and January 2022, carriers have spent over $100 billion on mid-band airwaves which is seen as the sweet spot when it comes to speed and coverage. To deploy that spectrum they will need to upgrade existing cell sites and install new ones; moreover with 5G there are new players (such as Dish Network) without any existing cellular infrastructure and this could also drive demand; enterprises are also looking to build private 5G networks which could be a growing market for technology providers; smartphone manufacturers increasingly equip mid-range and lower-end devices with 5G capabilities - that's another area where spending can increase significantly going forward.

In our theme, Skyworks stock has been the fastest growing company, with revenue rising by almost 52% over the last 12 months. Verizon appears to be among the most reasonably valued stocks in the theme, with a price to sales multiple of just about 1x

With inflation rising and the Fed raising interest rates, Verizon has fallen 3% this year. Can it drop more? See How low can Verizon stock go by comparing its decline in previous market crashes? See the following.

If you are looking for a more balanced portfolio, P500?fromforbesandarticle=TREFIS220707">multi strategy portfolio have consistently beaten the market since the end of 2016.

Trefis