The best stocks to buy before the 5G revolution

One of the biggest growth drivers in the tech world in the coming years will be the rollout of 5G wireless networks. The fifth generation of wireless networks will significantly increase global Internet connectivity, producing a much faster connection with more capacity and less latency. Let’s see next the best stocks to buy before the 5G revolution.

The best stocks to buy before the 5G revolution

5G networks will enable a greater number of connected devices, faster performance on those devices, and more advanced software applications for the Internet of Things, autonomous vehicles, and cloud computing spaces.

The best stocks to buy before the 5G revolution

Verizon Communications (VZ)

Verizon Communications is one of the largest telecommunications providers offering 5G service to its customers. Analyst David Barden says Verizon plans to increase its number of 5G cell sites by 500% in 2020 and roll out its 5G network in 30 new cities by the end of the year.. In addition to its 5G growth opportunities, Verizon has an extremely strong subscriber base and one of the strongest balance sheets in the industry, says Barden. Verizon also pays a hefty 4.5% dividend. Bank of America has a “buy” rating and a $64 price target on VZ shares..

T-Mobile US (TMUS)

Telecom giant T-Mobile closed its purchase of Sprint on April 1, and Barden says T-Mobile will finally be the first mobile carrier to launch a “true nationwide 5G network.”. Additionally, Barden notes that the Sprint integration gives T-Mobile a spectrum advantage that could drive subscriber growth and potentially an advantage to consensus analyst estimates. The Sprint deal was certainly expensive, but Barden says T-Mobile should be able to quickly deleverage its balance sheet, opening the door to potential shareholder-friendly capital allocation down the line. Bank of America has a “buy” rating and a $110 price target on TMUS shares.

Apple (AAPL)

In addition to network providers, device manufacturers like Apple will also benefit from 5G upgrades.

Apple is expected to roll out its first 5G iPhone in the second half of 2020, with analysts expecting millions of 5G iPhone, Apple Watch and iPad upgrades in the coming years.

Analyst Wamsi Mohan says the iPhone 5G product cycle will boost sales and extend Apple’s many benefits. Looking ahead to 2021, Mohan projects that Apple’s hardware revenue will increase 20% due to 5G iPhones and accessories. Bank of America has a “buy” rating and a $390 price target on AAPL shares.

Nokia Corp. (NOK)

Nokia is one of the leading providers of infrastructure equipment for the global wireless industry. Analyst Tal Liani says Nokia’s revenue composition shift toward 5G handsets should help improve margins. In addition, Liani says that cost cutting and less exposure to China should help boost profitability in the short term. Once demand starts to pick up in the second half of 2020, Liani says Nokia’s attractive valuation should start to stand out as 5G investments accelerate through 2022. Bank of America has a “buy” rating and a $4.80 price target on NOK shares.

Broadcom (AVGO)

Broadcom is a diversified semiconductor company that produces chips for the wireless communication, enterprise storage, and industrial end markets. Broadcom is also one of the leading suppliers of chips for 5G base stations. Analyst Vivek Arya says Broadcom will see 40% growth in content on 5G iPhones compared to 4G models. Arya says Broadcom’s free cash flow margin of more than 40% provides ample headroom to support both its 4.1% dividend and 10.6% earnings-per-share growth target at 2021. Bank of America has a “buy” rating and $360 price target on AVGO shares..

Analog Devices (ADI)

Arya says that Analog Devices’ semiconductor stock is the “dominant player” in 5G radio signal chain technology with about 70% of the market share. He estimates that the company will have about four times as many content opportunities in the 5G era as it did in the 4G years. Arya says Analog comms sales bottomed out in Q1, 5G boom sets multi-year growth phase which will lead to double-digit growth in communications sales in the coming years, well above normal growth rates for the analog industry. Bank of America has a “buy” rating and a $140 price target on ADI shares.

Qualcomm (QCOM)

Qualcomm is a leader in semiconductors that supplies and collects royalties on wireless infrastructure and devices.

Qualcomm is one of the biggest players in the development of 5G due to its semiconductor and licensing businesses.

The company is well positioned for revenue and profit growth as it will sell more 5G chips at higher margins in the coming years. Liani estimates that modem connectivity solutions 5G and mmWave will contribute between $5 billion and $10 billion to the company’s semiconductor revenue by fiscal 2022. Bank of America has a “buy” rating and a $115 price target on QCOM shares.

We have already introduced you the best stocks to buy before the 5G revolution, now we recommend you to analyze in detail the information of the company that you consider most appropriate. This way you can make an excellent investment-

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