5G Stocks to Watch
Few would refer to the stock market as trendy. In this post we will discuss some 5G stocks to watch
However, in my decades as a trader, I’ve observed that there are trends that can create big moves in the market. Usually, a few select sectors per year begin trending and then explode, often within a pretty short period of time.
As a trader, how can you best take advantage of this phenomenon?
Well, you could follow the hot sectors and trade them while they’re on fire.
Or, you could separate yourself from the crowd and try to locate the hot sectors before they peak and find the trading opportunities first.
In the past couple of posts, I’ve addressed what I believe could be a red-hot sector in the coming months: 5G technology.
Last week, I introduced you to several under-the-radar, low-priced stocks to look at in this sector. This week, I’ll discuss some large-cap companies that might be positioned to benefit from the heat in the 5G sector.
5G Stocks to Watch : The Next Big Thing?
Still confused about what 5G is and why it matters? Let me explain.
5G is short for fifth generation. It’s the successor to the current 4G network, but it represents more than just faster service on your phone.
5G technology is the wave of the future — literally. Rather than relying on the lower wavelength frequencies of today’s networks, it will have shorter yet more powerful frequencies. However, the new technology is going to require a whole new infrastructure.
You see, the new wavelengths will require more antennas, which can be smaller but need to be placed closer together to accommodate the new technology.
Annoying? Maybe. But once in place, the new infrastructure should be able to accommodate technology upgrades for years to come.
Since internet use is only on the rise, with more and more devices being connected, this means that the new technology related to the 5G sector could spark big interest for traders and investors. It certainly has my attention.
Large-cap 5G Stocks to Watch
Here are some examples of large-cap 5G companies worth exploring. Could one of these companies emerge as the sector leader?
This company has a market cap of $61.73 billion market cap, which makes them the biggest on this list.
Based in California, Qualcomm is involved in the design, development, and implementation of digital telecommunications services and products. The company is divided into several parts, which respectively address technology, technology licensing, and strategic initiatives.
Between the different parts of the company, Qualcomm has its hand in plenty of aspects of the new emerging technology, including supplying circuits and system software, networking, and new products and services for voice and data communications.
With the many branches of the company, there are plenty of opportunities for this stock’s price to rise with the advent of 5G technology.
With a $26.5 billion market cap, this Swedish company may be smaller than Qualcomm, but it’s been around since 1876 (no, that’s not a typo), so you could say they’re pretty established.
Within the company there are several divisions, including networks, digital services, and managed services.
Between these divisions, the company aids in the digital transformation journeys along support systems, and assists with networks, software, cloud, and business processes.
Ericsson also has a new AI-based operations engine. This engine is being viewed as a proactive step in addressing the increasing complexity of the network, and may be able to help service providers in handling the ever-growing number of internet-connected devices.
With this technology timed out nicely with the emerging 5G technology, we could see great things from Ericsson in the near future.
Casa Systems (CASA)
Massachusetts-based Casa Systems, Inc. has a market cap of $1.01 billion and is involved in the development of digital video and broadband services. They provide cable, WiFi, and mobile network solutions.
If you take a look at the ticker, you’ll notice that shares recently took a nosedive. This is due to a preliminary earnings announcement where they revealed a big decline in revenue. The stock was down by 20% at one point.
However, this drop could potentially offer a great opportunity. While the company’s performance may be down compared to the same quarter in 2017, the CEO reported that software sales were overall good, which means the company should maintain a high gross margin.
As the dust settles and the 5G developments unfold, this company could be poised for impressive growth.
SwingTrades With Paul Scolardi
My name is Paul Scolardi, and I’m a swing trader and the lead teacher at SwingTrades.
I treat the market like a game of chess: I’m always trying to look a few steps ahead. Instead of chasing the hot sectors right now, I’ve got an eye on finding the next hot sectors before they peak.
Over my many years of trading, I’ve created a method to help identify hot sectors before the masses by looking at sector leaders, finding earnings winners, and locating the hottest IPOs.
By looking ahead rather than focusing on what’s hot right now, and using the same methods over and over, I’ve become a successful swing trader with an incredible group of students.*
Are you interested in learning more about my approach? If so, consider joining my SwingTrades program.
As a teacher, my students learn my methods for locating tomorrow’s potential momentum stocks so that they can potentially maximize their profits in these emerging sectors.
At this point, I’ve been teacher to over 1,400 students from all over the globe. Many of them have attained success, with several having reported six-figure profits* and one reported millionaire student*!
SwingTrades helps you learn how to find the next big emerging stocks while they’re still under the radar, which means that you’re in the best position for growth. I want to teach you how to make the most of trading opportunities by getting ahead of the trend!
Do you have experience with trading in the 5G sector? I want to hear about your experience. Leave a comment and let me know!