The fifth generation of wireless technology has created an unprecedented buzz as it has started its roll-out across the country, but it hasn’t come without its hiccups.
With all the hype around 5G, you would think that its implementation is a sure thing. It’s been hyped as the only thing that will ensure that the Internet of Things economy comes into existence. It has been said that it could replace wired broadband entirely.
And while all of that is true, there are quite a number of roadblocks in the way of full implementation of 5G. Here are the companies looking to fix these potential roadblocks and make a whole lot of money doing so.
Qualcomm, Inc. (QCOM)
Qualcomm has been one of the wildest rides in the market. In January, it soared almost all the way to $100/share, only to come crashing a full 40% near the end of March down to a low of $60. Since then the stock has rebounded to around $80/share.
But Qualcomm just announced an enormous contribution to the 5G rollout. Great hardware is one of the best ways to profit from any tech boom, and Qualcomm may have done just that.
Qualcomm just released a new 5G modem. And it’s unlike any modem you’ve ever seen. I’m sure you’re imagining a large, clunky device that messes up the decor of your home. But this is a tiny chip that goes inside your smartphone, called the Snapdragon X55.
Days before they released their Fiscal Q2 2020 results, Qualcomm announced a 5% year-over-year hike in its quarterly dividend payment. And its payouts are still under 3/4 of their earnings per share, giving the company plenty of room for hikes in the future.
American Tower Corporation (REIT) (AMT)
American Tower is a Boston-based real estate investment trust and operates as the owner and operator of wireless and broadcast infrastructure not only in the U.S., but across the globe, including more than 75,000 sites in Asia, more than 16,000 in Europe, the Middle East and Africa, and over 37,000 in Latin America.
In Q1 of 2020, American Tower posted strong growth, even amid the coronavirus pandemic, delivering nearly $2 billion in revenue, a 10% increase from the previous quarter.
Among 18 analysts polled, 13 gave the company a buy rating. Only one recommended selling. The company has a perfect score beating earnings projections since the beginning of 2019 and even topped its projections by 23% in Q4 of 2019. Its share price hovers in the $210-$235 range.
RECOMMENDED: Tiny firm set to win race to deploy 5G
We’ve all heard about investing in 5G.
But while everyone is talking about the fancy new 5G chips or antennas…
Nobody’s talking about the most significant piece of the 5G puzzle…
The web of networking cables crisscrossing the country that will bring information from all over the world right to your fingertips.
This is the backbone of America’s 5G network. [Read More]
Inseego (INSG)
Inseego has gotten a bit beat up by the news recently, missing earnings projections by 43% in March and 23% in December. Here’s why we still think it’s a good buy.
With the global pandemic shifting the world more and more digital (and using more and more broadband internet), Inseego has emerged with the right products. Demand is already booming as the company has moved from serving just one wireless carrier to 11 carriers across three different continents.
Inseego’s low-latency (i.e. fast) 5g connectivity has made all of the demands of today’s work-from-home economy possible. It has helped to deliver remote healthcare in a world where routine check-ups have largely been halted. And it just released its full lineup of second-generation 5G devices that leverage the new Qualcomm Snapdragon X55 5G Modem-RF System.
INSG has been in the range of $7-$9, making it the stock with the lowest share price on this list.
