It’s not every day that you can see the world changing around you, but 5G technology is one of the innovations that has wide-ranging implications on everyday living. That’s why it’s important to be looking for the best 5G stocks to buy.
The fifth-generation mobile network delivers higher multi-gigabit peak data speeds and improved reliability that connects the internet and smart devices. The great thing about 5G is that it gives mobile users the same streaming experience as someone using an ultra-fast wired connection.
That has a lot of uses. Doctors will be able to conduct virtual appointments with patients over a 5G connection. Streaming video will be sharper, faster and clearer, which will make everything from watching movies to betting on live sports events easier. Virtual reality and gaming will soar to new heights with a 5G network.
5G will also allow the growth of smart cities where everything is connected – lighting, parking, traffic, waste management and more.
There are lots of ways to invest in 5G technology, but not every stock is a winner. To help you uncover the best 5G stocks to buy now, turn to the Portfolio Grader for an analysis of which stocks are highly rated and deserve your attention.
Qualcomm (NASDAQ:QCOM) is one of the acknowledged leaders in 5G technology. It owns several patents that are essential to the manufacturing of semiconductors that make 5G wireless technology possible.
Revenue jumped by 55% to $33.5 billion last year as the company flexed its strength in the semiconductor sector. Earnings for the fiscal third quarter include revenue of $10.93 billion, which was better than the $10.85 billion that analysts expected. Its $2.96 EPS was better than the Street’s expectations of $2.87.
Despite all the good news, QCOM stock is down more than 39% so far this year, which is worse than the performance of the tech-heaving Nasdaq composite.
Considering Qualcomm’s overall strength, QCOM stock should bounce back as the tech sector regains steam. Until then, consider QCOM shares on sale. Qualcomm stock has a “B” rating in the Portfolio Grader.
T-Mobile US (TMUS)
It’s not too often this year when you run across a tech stock that is not only outperforming the market but bringing in solid returns for investors. But T-Mobile US (NASDAQ:TMUS) fits the bill here.
TMUS stock is up more than 17% on the year, while competitor Verizon (NYSE:VZ) is down 26%. The Invesco QQQ Trust (NASDAQ:QQQ) a popular tech ETF, is off even more.
T-Mobile is in the process of rolling out its 5G network across the U.S. At the end of June, it counted 110 million subscribers, ranking it as the No. 2 wireless carrier in the nation (Verizon has 143 million).
Earnings in the second quarter were mixed. Revenue of $19.7 billion was slightly below analysts’ expectations for $20.08 billion. But EPS was huge at $1.94 per share while the Street was expecting only 35 cents per share.
TMUS stock has a “B” rating in the Portfolio Grader.
Arista Networks (ANET)
Arista Networks (NYSE:ANET) is a cloud-computing stock that is an under-the-radar play. It develops, markets and sells cloud networking solutions and has more than 7,000 cloud customers around the world.
Barclays recently upgraded its rating on ANET stock, to the equivalent of a “buy” rating, and said the company stands to benefit from “resilient” demand for cloud services and more room for growth.
Earnings for the second quarter included top- and bottom-line beats, with revenue of $1.05 billion and EPS of $1.08. Analysts had expected revenue of $979.49 million and EPS of 92 cents per share.
Arista stock is down 20% so far this year, but that just means the shares are on sale. ANET stock has an “A” rating in the Portfolio Grader.
With a market cap of $182 billion, Broadcom (NASDAQ:AVGO) is one of the more well-known 5G stocks. The company designs and develops semiconductors for the wireless and broadband communication industry.
On top of that, Broadcom is in the process of buying enterprise software company VMware (NYSE:VMW) for $61 billion to expand into cloud computing.
Earnings for the fiscal third quarter included revenue of $8.46 billion, beating Wall Street’s estimates for $8.41 billion. EPS was $9.73, which also beat estimates for EPS of $9.56.
True, AVGO stock is down big so far this year, off 33% this year, but there’s too much potential to ignore. Broadcom has a “B” rating in the Portfolio Grader.
Extreme Networks (EXTR)
Extreme Networks (NASDAQ:EXTR) isn’t a household name, but it should be on your list of top 5G stocks to buy now.
Extreme Networks designs and develops wired and wireless network infrastructure equipment – essentially, everything that you need to build out a 5G network. The company also develops software for network management, policy and analytics.
The company has a broad array of customers, including Coca-Cola (NYSE:KO), FedEx (NYSE:FDX), major universities and sports leagues like the National Football League and Major League Baseball.
The company’s Q4 2022 numbers continued its trend of beating expectations. Revenue of $278.2 million beat analysts’ prediction for $268.96 million. EPS of 15 cents per share was a penny better than expectations.
EXTR stock is down 17% so far this year, but it’s been on a recent tear, jumping nearly 40% since mid-June. Extreme Networks stock has an “A” rating in the Portfolio Grader.
Digi International (DGII)
Digi International (NASDAQ:DGII) develops products and solutions for the Internet of Things (I0T). Digi International supports retail, banking, medical and transportation industries with its products and services.
The stock has been a huge winner so far in 2022, up nearly 37%, with seemingly plenty more room to run. Cantor Fitzgerald analyst Derek Soderberg gave DGII stock an “overweight” rating in September and a price target of $41, saying that the company is transforming itself from a low-margin supplier of connectivity hardware to a high-margin distributor of hardware and software subscriptions.
Earnings for the fiscal third quarter continued the company’s trend of exceeding expectations. Revenue of $103.52 million topped estimates of $96.12 million. EPS of 45 cents per share also topped estimates of 37 cents per share.
DGII stock has an “A” rating in the Portfolio Grader.
Adtran Holdings (ADTN)
Adtran Holdings (NASDAQ:ADTN) is one of the globe’s biggest analog and digital signal processing chipmakers. It makes chips for communications applications, as well as computer, military, aerospace and consumer electronics.
Earlier this year, it completed its merger with ADVA Optical Networking, a German-based manufacturer of optical and Ethernet-based networking solutions to deliver data, storage, voice, and video services. With expected annual revenues of $1.3 billion in the newly merged company, Adtran is expected to be a major player in the worldwide expansion of 5G technology.
Earnings for the second quarter included revenue of $172.04 million, which was better than the $170.73 million that analysts expected. EPS was also a winner, with Adtran reporting 19 cents per share versus the 11 cents per share that the Street expected.
ADTN stock is down nearly 15% so far this year, but it still has a “B” rating in the Portfolio Grader.
On the date of publication, Louis Navellier has a position in TMUS and AVGO. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
On the date of publication, the InvestorPlace Research staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.