As the global tech landscape accelerates, 5G technology remains at the forefront of this transformation. Despite market fluctuations, 5G stocks to buy are perceived as pivotal investments for those looking to capitalize on the next wave of digital evolution. The upcoming rollout of more comprehensive 5G services across various sectors signifies a pivotal moment for investors.
The global 5G technology is expected to grow from $24.7 billion in 2023 to an impressive $84.8 billion by 2033, growing at a staggering CAGR of 125.32%. North America has the leading market share as of 2023, whereas the Asia Pacific region is expected to grow fastest during the forecast period.
In this context, missing out on select 5G stocks could mean missing out on a significant slice of future tech dominance. Hence, here are three 5G stocks to buy that are surviving and thriving amid the tech revolution, presenting compelling cases for why adding them to your portfolio now could prevent future regrets.
Verizon (VZ)
Verizon (NYSE:VZ) has shown commendable performance amidst a competitive and fast-evolving telecommunications landscape. The company is at the forefront of the 5G technology rollout. In the recent financial updates, Verizon highlighted its ongoing expansion into new markets and upgrades to existing infrastructure. This proactive approach in the 5G space solidifies its market position and sets the stage for future revenue streams.
As of the latest financial quarter ending March 2024, Verizon reported revenues of $32.98 billion, slightly missing consensus forecasts. However, the company still maintains stable financial health. Despite the slightly missed revenue expectations, Verizon’s adjusted EPS of $1.15 beat the forecast by $0.03, indicating effective cost management and operational efficiency.
Moreover, Verizon’s commitment to improving its capital structure is evident through its significant reduction in long-term debt, which aims for a more balanced sheet and reduced financial risk. Verizon is an attractive option for investors with a current dividend yield of over 6%.
AT&T (T)
AT&T (NYSE:T) is a stalwart in the telecommunications industry. Over the past year, the company has demonstrated a commendable execution of its growth strategy, particularly in expanding its fiber network and enhancing mobile services.
AT&T has reported a modest yet stable financial performance, with notable strategic moves that underscore its potential for sustainable growth. In the first quarter of 2024, although total revenues slightly declined by 0.4% year-over-year (YoY) to $30.02 billion, the company’s focus on high-margin areas such as fiber and mobile services is promising. The company successfully added 252,000 new fiber customers and 349,000 wireless phone subscribers, indicating strong market demand for its services.
AT&T has been prudent in its capital allocation strategy, focusing on reducing debt while investing in growth areas like 5G and fiber optics. The company’s disciplined approach to capital expenditure and debt management is evident from its reduced net debt-to-adjusted EBITDA ratio, which improved to 2.76x in the first quarter of 2024.
QUALCOMM (QCOM)
QUALCOMM (NASDAQ:QCOM) designs and markets wireless telecommunications products and services.
The company’s Snapdragon platforms are central to its 5G operations. These include a family of mobile processors and modem chipsets that enable high-speed, low-latency communication required for 5G connectivity.
QUALCOMM reported strong financial results in FY Q2 2024, with revenues reaching $9.4 billion, slightly surpassing market expectations—the company’s ability to maintain consistent revenue growth despite broader market challenges. QUALCOMM’s profit margins have shown impressive improvement, indicating efficient management and promising profitability prospects.
The company’s strategic focus on integrating AI into its chipsets has positioned it as a key player in AI technology. For example, the Snapdragon 8 Gen 3 mobile platform has been instrumental in driving the adoption of AI in smartphones, enhancing user experiences through improved processing power and efficiency. This move is both technologically significant and timely as the global demand for smarter, AI-powered devices continues to surge.
On the date of publication, Mohammed Saqib 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.
