SPECIAL REPORT The Top 7 Stocks for 2024

5G Takeover: The 3 Tech Titans Leading the Charge in 2024


  • Get ahead with these leading 5G stocks driving the global connectivity overhaul.
  • Qualcomm (QCOM): With a resilient earnings beat and a 21-year dividend growth streak, Qualcomm’s strategic position in the 5G sector makes it a compelling pick.
  • AT&T (T): Surging beyond EPS forecasts and strengthening its free cash flow outlook, AT&T’s 7% dividend yield sweetens the deal for investors riding the 5G wave.
  • American Tower (AMT): American Tower’s robust Q3 performance and an increased EBITDA outlook, paired with a 3.5% dividend yield, anchor it as a solid bet in the burgeoning REIT market.
5G - 5G Takeover: The 3 Tech Titans Leading the Charge in 2024

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5G stocks aren’t just riding the wave of a technology trend, they’re at the helm of a revolution in the communications sphere. Think of 5G as the transformative step from the slide rule to the personal computer, a robust paradigm shift. With speeds almost 100 times faster than 4G and a tenfold increase in connectivity potential, 5G is redefining the tech sphere with aplomb. It slashes latency, a critical factor for seamless data transfer, by 90%, ushering in a powerful new era of innovation and efficiency.

That leap in capability paves the way for advancements across various sectors from mobile communications and automotive tech to the Internet of Things. Moreover, with Markets and Markets projecting a leap in 5G-generated annual sales to $331.1 billion by 2027, the trajectory for 5G stocks remains crystal clear.

Qualcomm (QCOM)

Qualcomm (QCOM) logo on an outdoor sign
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In the competitive semiconductor space, Qualcomm (NASDAQ:QCOM) emerges as a key player, especially in the burgeoning 5G realm. Its powerful innovations serve as a critical element in the deployment of advanced 5G networks, typically described as the framework underpinning the seamless operation of wireless internet.

Despite the headwinds in the global tech space, the company’s fourth-quarter earnings per share of $2.02 surpassed the street’s forecast by 11 cents, a testament to its resilient business model. Interestingly, this comes at a time when revenues dipped 24% year-over-year to $8.67 billion yet still edged past analyst estimates by roughly $146 million.

Moreover, the automotive sector provided a silver lining with a commendable 15% year-on-year revenue hike to $535 million. Additionally, with a forward dividend yield of 2.67% and a remarkable 21-year streak of dividend growth, Qualcomm demonstrates an attractive income opportunity. Furthermore, trading at a mere 3.29 times forward sales, Qualcomm’s stock presents a discount relative to historical multiples.

AT&T (T)

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AT&T (NYSE:T) is a true titan in the telecom industry, which continues to make waves with its robust 5G network. The company has been steadfast in expanding its infrastructure, a strategic move that effectively places it on the path of the 5G adoption curve, set to benefit from the burgeoning demand for high-speed, reliable wireless service. Consequently, AT&T’s stock witnessed a 10% uptick in value since its third-quarter earnings announcement.

The Dallas-based giant surpassed EPS expectations, outperforming estimates by a couple of cents to 64 cents per share. Also, it nudged its revenue up by 1% year-over-year to $30.4 billion, slightly ahead of the $30.2 billion anticipated by analysts. Moreover, AT&T upgraded its free cash flow forecast to $16.5 billion, up from an earlier estimate of $16 billion. Likewise, the company also projected a healthy 7% growth in broadband sales. Additionally, for those with an eye on sturdy returns, AT&T’s impressive dividend yield stands at 7%, marking 27 years of unwavering payouts.

American Tower (AMT)

A magnifying glass zooms in on the American Tower (AMT) website.
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As 5G technology fuels a global connectivity revolution, American Tower (NYSE:AMT), a juggernaut among global Real Estate Investment Trusts (REITs), stands firm with its extensive network of cell towers. Despite a double-digit drop in share price this year, AMT is strategically positioned to leverage the predicted $333.01 billion surge in the REIT market over the next five years.

Beyond its financials, American Tower’s portfolio of over 225,000 communication sites accentuates its formidable global presence. The third quarter showcased the company’s robust operational performance, exceeding forecasts and raising its average-funds-from-operations per share guidance slightly above analyst expectations. This upward adjustment reflects a steady 0.3% year-on-year growth. Further solidifying investor confidence, American Tower also improved its full-year adjusted EBITDA outlook, forecasting a healthy 5.2% yearly bump. For dividend enthusiasts, AMT’s attractive 3.5% yield, along with over a decade of consistent payout expansion, presents a thrilling case for those banking on the 5G-driven future.

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.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

Article printed from InvestorPlace Media, https://investorplace.com/2023/11/5g-takeover-the-3-tech-titans-leading-the-charge-in-2024/.

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