The 5G revolution is coming, and to help you cash in on the transformation, these are the best 5G stocks to watch in 2019.
In fact, the revolution could be as great as the rollout of personal computers and the introduction of the Internet. These made fortunes for investors who got in early.
In October 2018, Verizon Communications Inc. (NYSE: VZ) said it had started to activate the first-ever 5G network in the United States. The 5G capability, rolled out in four U.S. cities, is expected to expand throughout 2019 and 2020.
Currently, data networks in the United States run on 4G. Your smartphone, for example, is likely a 4G phone.
But the upgrade to 5G won’t just mean a faster connection – it could transform the entire economy. 5G will enable self-driving cars to become a reality because autonomous cars need continuous, rapid access to real-time data. That also means they need the constant, high-speed connection 5G offers.
The Internet of Things (IoT), which will enable devices to talk to each other across businesses and homes, will move faster and more conveniently on 5G.
Plus, broadband-like speeds will allow you to connect to the Internet anywhere. That could change how we look at Internet services and cable television.
Fortunately, all the disruption 5G networks will bring is creating an opportunity for investors.
These are our best 5G stocks to watch in 2019, and they’re poised to reward investors.
Best 5G Stocks to Watch in 2019, No. 5: Keysight Technologies Inc.
Keysight Technologies Inc. (NYSE: KEYS) is a U.S. electronics firm that develops equipment and software for measurement and analysis of electrical statistics.
That may sound niche, but Keysight has developed its business to be crucial to the 5G expansion of networks. 5G will require a network of hardwiring and towers to function properly. To put the network together, 5G companies will need to analyze and collect data. Keysight makes the instruments necessary to do this.
Two years ago, KEYS worked with semiconductor company Qualcomm Inc. (NASDAQ: QCOM) to demonstrate the first 5G data connection with a modem chipset.
It’s very likely to become a key player given that history.
Further, Wall Street analysts forecast a $100 share price in the next 12 months – a nice 17% advance from the current $84.94 share price.
Best 5G Stocks to Watch in 2019, No. 4: Intel Corp.
Venerable semiconductor maker Intel Corp. (NASDAQ: INTC) is the second largest global chipmaker.
It doesn’t intend to be a slouch in the 5G market, either. In fact, the company has spent the last 10 years making sure it dominates the market.
Eight years ago, INTC bought Infineon, a modem maker based in Germany. It’s the only company that supplies modems to tech giant Apple Inc. (NASDAQ: AAPL). AAPL uses the modem chips from Infineon to connect iPhones to networks.
So now INTC has an exclusive supplier relationship with Apple, one of the biggest device makers on the planet.
INTC plans to launch a 5G modem in 2019 too. That will be a big help in ushering the iPhone into the 5G world.
But the 5G modems are also planned for automakers for use in self-driving cars and for industrial manufacturers for the IoT.
Wall Street analysts have a target price on INTC of $70 – a nearly 30% climb from today’s $54 share price.
INTC currently has a 3.75 VQScore. While it’s a good buy, you are likely to get an even better price – and therefore better potential price appreciation – if you buy on the next dip.
Best 5G Stocks to Watch in 2019, No. 3: Apple Inc.
And just like we said above, tech behemoth Apple is primed for the 5G revolution.
Apple has been seeing the effects of lagging sales for its flagship product, the iPhone, driven by weakening sales in China and throughout the globe.
So much so that AAPL’s earnings report in January showed a drop in revenue of 5%. And the company lowered guidance for future quarters. Sales in the current quarter are forecast to decline up to 10%.
Apple needs to breathe new life into its old products. And 5G phones could be the innovation the company needs.
Apple and Intel are working together to see that they both capitalize on the new 5G networks.
Plus, Apple has been working on a self-driving car beginning in 2014. 5G is likely to be a gigantic boost to these plans.
AAPL enjoys an excellent 4.45 VQScore, putting the stock right in the “Buy Zone.” Analysts on Wall Street project that AAPL shares could rise up to 40% over the next 12 months, which might turn out to be overly conservative.
Best 5G Stocks to Watch in 2019, No. 2: Micron Technology Inc.
Micron Technology Inc. (NASDAQ: MU) produces hardware used in manufacturing both semiconductors and computers worldwide.
It has been making plans for the 5G revolution for some time, developing a multichip package for use in 5G modems.
Its current product was developed to provide modems with the capability to run as much as 20 times faster than current modems.
MU’s products will be used in every sector that uses 5G.
Right now, MU has the highest VQScore of the 5G stocks bunch, at 4.75. Wall Street analysts have set a $90 target price on the stock. That’s an almost 125% increase from today’s $39.75 share price.
But our top 5G stock to watch is flying under the radar right now…
Best 5G Stocks to Watch in 2019, No. 1: Skyworks Solutions Inc.
Skyworks Solutions Inc. (NASDAQ: SWKS) is a U.S. semiconductor producer based in Massachusetts. It makes analog chips for 5G.
SWKS is going to benefit from two trends related to 5G. The first is the sheer number of sectors that are going to need 5G chips. You name the sector; it’s going to be moving into 5G.
But the second and even more significant trend is the role of 5G in mobile devices – and the profit picture for the company.
Every time the mobile network upgrades, Skyworks’ products get more profitable.
For 3G network phones, SWKS booked a profit of about $8 per phone. For 4G network phones, that figure rose more than 100% to $18.
Management forecasts that 5G phones will make the company $25 per phone, another 38% increase in profit.
Not only that, but mobile phones make up 73% of sales as of the first quarter. That means that the climb in mobile phone profit will be really good news.
Wall Street analysts forecast that the company’s shares will sell for $173 once the 5G revolution is underway, a 113% jump from the current $83.26 level.
But this could be the true breakout stock once 5G gets here…
Source: Money Morning