As we look upon the New Year, we see that the landscape for 5G stocks is ripe for an exciting journey. The ongoing rollout of 5G networks globally presents an enticing opportunity for investors. However, this burgeoning market has challenges, so wagering on the right 5G stock picks is imperative. 5G connectivity, known for its ultra-fast speeds, remarkably lower latency and capability to support an unprecedented number of connected devices, is set to revolutionize many sectors globally.
Furthermore, the burgeoning 5G services market is anticipated to expand at a staggering CAGR of 59.4% from 2023 to 2030, according to Grand View Research. This represents a golden opportunity for investors to place their bets on the top 5G stocks at the forefront of this transformative shift, promising a chance to be part of a tech evolution.
Qualcomm (QCOM)
Qualcomm (NASDAQ:QCOM) is an American semiconductor titan, riding the 5G wave with aplomb. Stationed in the tech hub of San Diego, CA, this tech behemoth boasts a legacy of spearheading critical wireless innovations. From the bedrock of CDMA 2000 to 4G and now 5G, the firm’s strategic foresight is unequaled. Moreover, it forecasts a staggering annual 5G capital expenditure surge, hitting an astronomical $265 billion over the upcoming 15 years, signifying a seismic industry transformation.
In the financial realm, Qualcomm’s prowess shines bright. Its fourth-quarter adjusted earnings of $2.02 per share eclipsed the anticipated consensus of $1.91. Additionally, the company’s automotive sector sales are on an impressive trajectory, marking a significant 15% year-over-year growth, reaching $535 million. Peering into the future with confidence, Qualcomm forecasts a rosy first quarter, with sales projected to fall between $9.1 billion and $9.9 billion.
T-Mobile US (TMUS)
T-Mobile US (NASDAQ:TMUS) is a front-runner in the 5G sphere, making it a top pick for savvy investors eyeing the sector’s boom. As a global 5G infrastructure leader, T-Mobile has built the largest and fastest 5G network in the United States. This achievement sets the stage for a streak of continued outperformance this year.
Moreover, in an innovative move, T-Mobile marked an industry first by successfully executing a six-carrier aggregation call in the sub-6 GHz spectrum, achieving tremendous bandwidth. This technical milestone underscores its commitment to advancing 5G technology.
Financially, T-Mobile’s financial position is equally striking, with its third quarter results being a testament to this. TMUS reported a whopping 322% year-over-year increase in net income, equal to $2.1 billion. Furthermore, earnings per share leaped by an astounding 355% year-over-year, while free cash flow numbers nearly doubled to a robust $4 billion. It will post its fourth quarter results on Thursday, with average earnings per share estimates at $1.90, a 61% bump on YoY.
Cisco Systems (CSCO)
Cisco Systems (NASDAQ:CSCO) is another formidable contender in the 5G arena, earmarking itself as a top stock to watch in 2024. The company’s foray into private 5G services caters to various sectors, including manufacturing, energy, utilities and others. Also, Meraki, its cutting-edge 5G cloud wireless solution, stands out with its MG51 and MG51E models boasting lower latency, heightened security and faster speed times.
The fiscal year 2023 was nothing short of stellar for Cisco, with a revenue bump of 10% year-over-year, hitting a whopping $57 billion. This impressive growth is a testament to Cisco’s adept market strategy, capturing shares in AI, security and cloud domains. The convergence of 5G and cloud security forms a major tailwind for Cisco, propelling it towards another year of powerful performance in 2024. This blend of innovation and market adaptability positions Cisco as a leader in shaping the future of 5G technology.
Verizon Communications (VZ)
Verizon Communications (NYSE:VZ) has been steadily fortifying its position in the 5G landscape. With its operational wings, the Verizon Consumer Group and Verizon Business Group, it delivers a variety of services, notably 5G and 4G wireless connectivity, alongside high-speed Internet and digital TV across the U.S.
However, VZ’s third quarter did have its challenges. The company reported a dip in total operating revenue, down 2.6% to $33.3 billion, and a 2.8% drop in net income year-over-year. Despite these hurdles, Verizon surpassed expectations with an EPS of $1.22, beating the consensus by a notable 4.3%. Additionally, its attractive 6.76% annual dividend yield remains a strong pull for the investing world. As eyes turn to Tuesday’s upcoming fourth quarter report, with analyst earnings estimated at $1.07, reflecting a 10% year-over-year drop, the anticipation is tinged with cautious optimism.
Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) is a formidable player in the semiconductor sphere and stands out as one of the leading 5G stocks. Renowned for its diverse product array, Broadcom’s prowess in sectors including set-top box SoCs and RF semiconductors has propelled it to the center stage of 5G technology. Notably, its Trident 5-X12 chip, equipped with the innovative NetGNT neural network, doubles bandwidth while cutting power consumption by 25%.
Financially, Broadcom’s recent performance has been encouraging, with a revenue leap to $8.88 billion in the third quarter, up 5% year-over-year, and a significant jump in adjusted EBITDA from $5.38 to $5.80 billion. Additionally, the repurchase of 2.9 million shares totaling $2.17 billion reflects confidence in its financial standing.
Broadcom’s 2024 outlook is brimming with ambition. The company forecasts an impressive $50 billion revenue, with EBITDA margins hitting 60%. Moreover, despite acknowledging some cyclical slowness in its broadband and storage semiconductor businesses, Wall Street remains optimistic about Broadcom’s prospects, especially at the back end of the year.
Crown Castle International (CCI)
Crown Castle International (NYSE:CCI) stands tall as a top real-estate-investment-trust (REIT) in the 5G landscape, boasting an impressive arsenal of over 40,000 cell towers. This formidable presence cements its role as a top player in the fast-evolving U.S. 5G market. Furthermore, with it poised for a leap in its small cell segment, CCI predicts 13% organic growth in 2024. This trajectory, fueled by powerful investments and the addition of new nodes, signals a bright future in this niche.
Financially, CCI demonstrates resilience, with a healthy dividend yield of 5.8%. Management’s forward-looking stance anticipates a return to growth in the 7% to 8% range by 2025. Additionally, with the 5G expansion wave, CCI is well-positioned to reap benefits from the soaring demand for wireless infrastructure. Furthermore, with the arrival of Anthony Melone as the interim CEO following Jay Brown’s retirement, CCI could be in for a spirited recovery.
As it gears up to release its fourth-quarter earnings on Wednesday, expectations are set for an EPS of 74 cents, reflecting a 20.43% dip from the previous year. Nevertheless, the seeds of a potential turnaround under new leadership are keeping investors keenly watching CCI’s next moves.
Wipro (WIT)
Wipro (NYSE:WIT), mainly operating in IT services with a focus on financial services, consumer and healthcare sectors, is poised for massive growth with expected sales of $10.8 billion by March 2024. The company’s expansion of its client base, mainly those exceeding $100 million, highlights its adaptability and strength. Wipro’s expertise in the 5G sphere is evident in its “5G Def-i” platform, enabling seamless integration of networks, applications and cloud services. Additionally, its collaboration with Cisco on a managed private 5G-as-a-Service solution further strengthens its 5G network sector position.
The company’s promising third quarter 2024 report, which saw a nearly 17% rally, reflects a strong upside potential in the upcoming quarters. Moreover, Wipro’s strategic workforce optimization and productivity enhancement signal a positive trajectory aligned with market shifts.
On the date of publication, Muslim Farooque did not have (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