As the digital landscape evolves rapidly, 5G — fifth-generation wireless technology — stands at the forefront of this transformation, anchoring the promises of tomorrow’s hyper-connected universe. With the world’s devices yearning for faster connections and lower latency, the stars seem perfectly aligned for investors eyeing the best 5G stocks to buy. Such a connected epoch underscores a robust demand trajectory, positioning businesses equipped to cater to the insatiable appetite at the cusp of remarkable growth.
Imagine a world where machine learning, cloud computing and IoT operate seamlessly, amplified by the prowess of 5G. Its potential is palpable with the crescendo around 5G gaining momentum, especially within autonomous driving and the emerging metaverse. To crystallize the sentiment, the anticipated revenue from 5G is slated to skyrocket to an astounding $331.1 billion by 2027 from a mere $107 billion in 2022.
5G Stocks to Buy: American Tower REIT (AMT)
American Tower REIT (NYSE:AMT) is a global powerhouse, with its expansive portfolio boasting a staggering number of cell towers across the globe. The majority of these towers are located outside of the U.S. and Canada.
AMT has shown prudence by divesting underperforming overseas assets, particularly in India, setting its sights firmly on the burgeoning 5G wave and its associated sectors. Moreover, with a whopping 226,000 cell towers, AMT is poised perfectly to ride the tidal wave of 5G demand. This momentum is mainly due to the massive network investments by telecom carriers and a remarkable organic growth trajectory in the North American region.
Not surprisingly, its recent second-quarter figures shine brightly, outpacing market expectations. The reported average funds from operations stood at $2.46 per share and revenue came in at $2.77 billion. This revenue spurt, complemented by a 4% hike in property revenue, is a testament to AMT’s unwavering commitment to its core objectives. Sweetening the deal is its generous yield, clocking in over 3%, underpinned by a decade-long streak of dividend growth.
Cisco (NASDAQ:CSCO) is a top-tier player in networking, racing ahead with palpable promise. While most eyes have been fixated on the AI-driven growth surge, Cisco hasn’t enjoyed the same limelight.
Yet, delving deeper, one discerns an arguably undervalued gem in the 5G ecosystem. The burgeoning 5G wave spells tremendous long-term potential for Cisco, especially in its niche of networking equipment. Of course, the journey hasn’t been without its hiccups, with the business grappling with a supply chain-induced backlog and stalling the delivery of its computing gear. However, the horizon looks clearer, with Cisco projecting an enormous uptick in sales growth as they enter fiscal 2024.
However, one might not envision a major price surge for Cisco immediately. A glance at its recent earnings report paints a rosy picture, with its sales leaping by a commendable 16%, while its EPS made an impressive 43% jump. While the tech world remains infatuated with AI-centric luminaries, it’s vital to acknowledge the silent, consistent performers such as Cisco.
Positioned as an undisputed titan in the U.S. wireless arena, AT&T (NYSE:T) is carving out a unique share in the rapidly evolving 5G sphere. Beyond the wireless frontier, AT&T is pushing forward, making powerful strides in 5G technology and breakthroughs in fiber infrastructure. With such expansive pursuits, the company is underlining its deep-rooted commitment to harnessing the full potential of the 5G revolution.
At the helm, CEO John Stankey casts an aspirational vision for the future, intricately woven within the fabric of a colossal national fiber network. The intent remains to effectively revamp consumer expectations, which involves robustly scaffolding the burgeoning 5G infrastructure. Moreover, for discerning investors, the dividend narrative is compelling. Boasting an enviable track record of 35 consecutive years of consistent payouts, AT&T currently flaunts a remarkable 7.3% yield.
On the date of publication, Muslim Farooque did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.