5G is here. If you don’t know what that is yet, it’s the next generation of wireless protocols. And if it hasn’t already, it’s going to change your life … dramatically. Think about the difference between the world before the internet and after. Or the difference between America now and before we had electricity. Or even the difference between what life was like before the steam engine and today.
Some analysts have referred to the recent arrival of 5G as the “next industrial revolution.” In fact, it’ll eventually change everything from how we do business to how we drive our cars to how we engage with our families in our own homes. Most importantly, however, 5G will change the way we live in cities and towns. That’s because with its arrival comes the arrival of “smart cities.”
Smart cities are cities that update themselves in real time. Think of traffic lights that predict how many cars are coming and regulate themselves accordingly. Or streetlights that know if people are on the sidewalk and can turn on and off as needed. Smart cities might even be able to do something about finding parking spaces for everybody!
Regardless of the sci-fi dreams 5G and smart cities can bring, it’s all coming soon. And today, I want to reveal to you three companies to take a second look at no matter what their earnings forecasts might be. Because with the future on the horizon, all three of these companies stand to profit in a big way …
Best 5G Stocks to Buy
Skyworks Solutions Inc (NASDAQ:SWKS): After the big semiconductor boom of 2014, Skyworks Solutions’ stock quickly trailed off. But this past year alone, SWKS has regained more than 32% of its share price already. That puts it back on track to reach its March 2018 highs once again, and smart investors could be looking to capitalize on that jump.
Now, even though some institutional investors are stepping away from the company these days, the next generation of SWKS’s transmitters are crucial for delivering 5G capabilities to tomorrow’s smart cities. That means Skyworks Solutions is poised for big profits as 5G takes over the rest of the U.S. next year.
Plus, with SWKS not expected to report the past quarter’s earnings until Nov. 14, right now could be the perfect time to capitalize on this stock’s potential … before the market prices in what this year’s 5G build-up might have brought with it.
American Tower Corp (NYSE:AMT): Unlike with SWKS, hedge fund investors appear bullish on American Tower stock. And that’s good news for individual investors because there are signs insiders are selling shares these days. But that’s not necessarily anything to fear.
AMT is expected to announce earnings on Oct. 31. And the share price is already up about 41% year-to-date. But even with dips in recent days, investors are still sitting on a 2.5% earnings surprise from last quarter … not to mention the role American Tower plays in today’s 5G conversion.
The company is a Real Estate Investment Trust (REIT) that owns approximately 171,000 communications real estate sites. As cities get smart, AMT is one organization everybody should be looking at to lead the way.
Verizon Communications Inc. (NYSE:VZ): The real key to smart cities, however, are the networks that 5G signals will be traveling over. That’s where Verizon Communications comes in.
Verizon has one of the largest cellular networks in the United States. And it’s currently rolling out 5G to municipalities. Included in Verizon’s smart cities already are stoplight and other streetlight sensors from Boston to San Diego. And those cities and devices are only going to grow in the years to come.
5G and Smart Cities: A $53 Trillion Opportunity
All in all, yesterday’s science fiction is today’s reality. Smart cities are coming. In some places, they’re already here. And the keys to it all are the world’s 5G networks.
Whether you’re interested in semiconductor stocks, cellular tower companies or network providers, we’ve looked at three possible opportunities today.
But the companies we’ve discussed here are only the tip of the iceberg. 5G has the potential to bring everyday investors like you and me tremendous profits. Click here to discover what Senior Technology Analyst, Matt McCall, has to say about this coming $53 trillion industry right now.
As of this writing, Michael Adams did not hold a position in any of the aforementioned securities.