3 Best Wireless Stocks to Buy for the 5G Rollout

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Looking over the last two to five years, the best wireless stock name jumps right out.

It’s T-Mobile US (NASDAQ:TMUS). The company has continued to grab marketshare with its “Un-carrier” ads and CEO John Legere ditching his suit to dress like an aging hippie. But the game is changing. Since bidding to buy Sprint (NYSE:S), the two stocks have moved in near lock-step.

But more importantly, there’s 5G to consider. The next mobile technology, which will make frequencies as high as 28 GHz usable by carriers, and offer speeds equivalent to wired broadband, will also cost billions of dollars to implement.

So which are the best wireless stocks to buy for the 5G rollout?

5G Wireless Stocks to Buy: T-Mobile Sprint

T-Mobile should still be on your list of mobile stocks to buy, especially if they win approval of the Sprint deal, which is not yet certain. Over the last three months the performance difference between the two stocks has widened again, as uncertainty over the merger’s future has grown.

The uncertainty is thanks to the Administration’s on-again, off-again merger policy, which still seeks to keep AT&T (NYSE:T) from buying Time Warner (even after it has done so), is stopping all Chinese money at the border, and appears inconsistent to critics.

T-Mobile says it’s already deploying 5G, across all the spectrum it owns, and that the merger will increase competition  because the combined company will be as big as AT&T and Verizon Communications (NYSE:VZ).

Sprint has claimed its 5G plans will deliver speeds 15 times greater than present 4G technology. The company believes new 128-radio Massive Input Massive Output (MIMO) gear will get it to market faster than competitors, using existing 2.5 GHz spectrum, targeting service next year. The merger with T-Mobile should help Sprint keep these promises.

5G Wireless Stocks to Buy: AT&T

Is AT&T Stock and Its Dividend a Must-Buy Ahead of Earnings?

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I own AT&T. I’ve been disappointed with the stock, but it remains a good investment for you because it’s dirt cheap.

The company’s 50 cent per share quarterly dividend now yields over 6%, it has a price to earnings multiple of 6.4, and it has earnings to cover that dividend. The struggle with the Justice Department over Time Warner will eventually end, the balance sheet shows it has assets to afford 5G deployment, and it is already rolling out the technology in major markets.

The 5G data signals run so quickly that fiber is often needed for backhaul to get the full effect, and the company has been rolling out fiber for years.  Its purchase of FiberTower was controversial… because it might give AT&T an unfair advantage when it comes to 5G rollout frequency.

AT&T dominated 4G and is ready for 5G.

5G Wireless Stocks to Buy: Google

google stock

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Your best bet for 5G profits is a speculative surprise.

It’s Alphabet (NASDAQ:GOOGL), also known as Google.

Google laid fiber cable behind my house a few years ago but didn’t light it because the per-house cost of running the wire was prohibitive.

With 5G, that problem goes away. Google says it wants more frequencies to be shared, the way WiFi is shared, and thinks sales of spectrum slow innovation, but the government still plans to start auctioning 24 GHz and 28 GHz spectrum in November, and Google is the only potential bidder with a crying need.

High frequency spectrum would let Google deliver its Fiber service to consumers with radios, rather than running wires, and make that profitable. Gaining spectrum wouldn’t just let it deliver fixed broadband but make it a true wireless carrier.  No wireless company can compete with Google’s balance sheet, with $4 billion in debt on nearly $200 billion in assets.

I had shares of Google, but got out when it crossed $1,000, and that was a mistake. Google’s price to earnings multiple of 52 makes is super-expensive right now, but the next stock market correction is likely to hit it hard, and when it does I’ll be a buyer.

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Source: Investor Place 

Market Preview: Alibaba, Gap, and Foot Locker Earnings, and an Early Look at PMI Numbers

The markets took the news that two of President Trump’s former staffers had been found guilty of several crimes in stride Wednesday. Though the news has been fodder for the pundits, thus far the markets have focused more on a great earnings quarter. Indices are daily flirting with new highs. News that a NAFTA deal with Mexico may be imminent, and the start of trade negotiations with China, are not hurting this juggernaut of a market either.

Thursday the market will see earnings from Alibaba (BABA) before the open, and the heavy retail earnings week continues after the close when Gap (GPS) reports. Alibaba is expected to give a good report on its core business, but those earnings are being overshadowed by spending to expand in bricks-and-mortar retail. Given the blowout earnings from companies like Target (TGT) and Walmart (WMT) investors may be in a forgiving mood to see the Chinese company putting more effort into physical stores. Inventory issues hampered Gap in the first quarter, but analysts expect those issues to be resolved this quarter. After great numbers from other retailers, Gap is expected to deliver an upbeat report. Analysts will be looking for continued strength in the Old Navy brand, as store openings have accelerated due to strong demand.

Thursday’s economic calendar is heavily loaded with the FHFA House Price Index and new home sales data released in the morning. Prices were down and supply was up in June, which analysts believe will bode well for the July report, after buyers have been reporting a dearth of available inventory. Both numbers are expected to rise slightly. Also released on Thursday are weekly jobless claims and the PMI Flash Index. The PMI number has been running up against capacity constraints, and analysts will be listening for anecdotal information from the flash number which is released 10 days before the final report. Thursday also marks the beginning of the Jackson Hole Annual Economic Symposium which often brings market moving commentary from its participants. Durable goods orders will be released Friday morning. The street is expecting a pullback in orders overall, but this is due to a dip in aircraft numbers. Ex-transportation analysts are expecting a .5% increase.

As it is a late Friday in August, only six companies are reporting earnings Friday morning. Among the group are Foot Locker (FL) and Hibbett Sports (HIBB). Analysts are looking for a continuation of improving numbers at the retail shoe chain. Foot Locker has been benefiting from an improved product offering mix from big names like Nike (NKE). FL is not expected to slip as its comeback continues. Although same-store sales and earnings dipped slightly at Hibbett last quarter, the small-town sports store is expected to recover this quarter. Analysts will be looking for increased traffic, and listening for commentary for how the economic recovery is fairing in small town America.

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