Switching to 5G can fuel rallies in these 3 stocks
The technological world is in the midst of a shake-up. From the end of 2017, the new 5G wireless technology is moving forward, bringing with it a combination of faster connection speeds and lower latency, and the promise of big changes in the way we connect to the online world. New technologies ̵
1; connected cars and agile IoT come to mind – would not be possible without 5G. Investment research firm HSBC Global in a recent report on the emergence of 5G technology addresses the question of whether the new network is a boom or a bust. In particular, HSBC asks why 5G has been depressing so far. Industry expert Professor William Webb notes that the introduction of 5G does not match the noise even in Asia, where networks are more extensive and better integrated. He describes the technology as “evolutionary, not revolutionary.” The Web identifies several areas in which 5G clearly needs further development: network expansion, which will require further construction of towers and cells; smoother transitions between cells; and improved functionality once the devices are connected. According to him, 5G is more the beginning than the end. Commenting on Web’s views and technology in general, HSBC Telecommunications Manager Neil Anderson wrote, “[We] see for pity (though unfortunately inevitable) that 5G was launched on the market … Further the bar will be raised by the mmWave services, which were launched in the US and recently in Asia in Japan. We see it as the “real” 5G and expect it to open up – albeit slowly – new opportunities for operators. “Whether 5G is overwhelming or overwhelming in the short term, in the long run it is here to stay – and that means that some stocks will increase as 5G grows. Wall Street analysts are busy finding these stocks, and the TipRanks database has information. Here are three of them. Inseego Corporation (INSG) First up, Inseego, is a company for wireless and mobile access points. As we can imagine, the company has benefited directly from the steps to increase remote work and virtual offices. Shares rose 27% this year, even after reporting high volatility in April and August. Inseego has a direct concern in 5G. As a wireless service provider, the company cannot afford to ignore new technologies and is directly involved in the development and marketing of 5G routers for home use. Inseego maintains an ongoing partnership with Verizon in the area of networks and hardware, and is also working to expand its IoT hotspots. The company has not neglected the insides of the devices and works with Qualcomm on advanced 5G router chips. Like many network providers, Inseego performs financially. Quarterly revenue reported consistent gains until 2020, with Q3 exceeding $ 90 million at the top. Q3 EPS showed a loss of 6 cents; the loss is considered normal because Inseego, again like many other technology companies, usually shows a net loss per share. The important point for EPS was that this was the smallest such loss in two years. Analyst Lance Vitanza wrote in his share coverage for Cowen: “While the company continues to see significant demand for older 4G products, its second-generation 5G product packages continue to grow … Inseego is positioned to benefit from the advent of 5G technology. which is expected to generate $ 500 billion in GDP in the United States and which will give way to more traditional upgrades to existing mobile hotspots from 4G to 5G. In line with these comments, the analyst assigns a rating of superiority (ie buying shares). Its $ 13.50 price tag shows room for 44% growth in 2021. (To follow Vitanza’s record, click here) Overall, Inseego has a moderate buy rating by analyst consensus based on 6 reviews divided into 4 purchases and 2 Holds. Meanwhile, the average price, $ 13.17, suggests there is 41% potential for an increase next year. (See INSG inventory analysis for TipRanks) Amdocs Limited (DOX) Software company Amdocs has built a strong reputation in the communications and media niche while remaining on the radar compared to its competitors. In recent months, Amdocs has expanded its 5G operations through the acquisition of Openet, a provider of telecommunications services for network commercialization and analysis. Openet is charged as “built for 5G” and this acquisition, valued at $ 180 million, will lead Amdocs to target the 5G network. Meanwhile, a look at the latest Amdocs results shows that the company has a stable position in the software universe. The company’s revenue barely flickered during the coronal crisis, remaining in the range of $ 1.03 billion to $ 1.05 billion over the past four quarters. Profits performed even better; The $ 1.17 EPS recorded in 3Q20 is the highest in two years. Despite solid financial results, Amdocs shares have not yet fully recovered from the market crash in mid-winter. Shares have fallen 10% so far, JPM analyst Jackson Ader said the relatively low price of the stock was a clear opportunity for investors. “As 5G adoption begins to increase and North America’s revenue stabilizes, we think it’s time to move to that name value that lags significantly behind our coverage and market this year … we believe that 5G is backing up. winds, improving the conversion of cash flows and the potential value of the rotation requires upgrading to overweight, “said Ader. Along with this upgrade to overweight (ie Buying), Ader sets a target price value of $ 75 for one year, which implies a 17% increase for the shares. (To view Ader’s record, click here) Overall, with 3 recent purchases and 1 hold, Amdocs receives a strong buy rating from analysts’ consensus. The shares are selling for $ 63.97, and the average price price is $ 76, slightly bullish than Ader and an increase of ~ 19%. (See Amdocs Stock Analysis for TipRanks) Tower Semiconductor (TSEM) Last but not least is Tower Semiconductor, a manufacturing company in the chip industry. Fabs are a vital link in the semiconductor business, as many of the big chip designers don’t actually make their own products – they do the design, make prototypes, and outsource mass production. Tower is one of the series manufacturers, producing chips for big names among major semiconductor companies, including Broadcom, Intel and Samsung. Tower has invested heavily in 5G, producing a range of chips for 5G-enabled devices, including everything from phones to data centers. As 5G networks expand and when end users begin the process of switching to activated devices, Tower is in a good position to win. No matter which big chip companies get the lion’s share of the new business, Tower will be there – it manages the manufacturing plants. This is an enviable niche at a time when the market is beginning to change at an accelerating pace. The combination of a solid foundation and good prospects can be seen in the prospects for revenue and profits. At the top, revenue is stable this pandemic year, while the bottom line predicts that EPS will start rolling back in Q4 this year. Needham analyst Rajvindra Gill is optimistic about the future path of the Tower. It values the shares for purchase together with a price price of $ 30, which suggests 30% up in the one-year horizon. (To watch Gill’s record, click here) Supporting his position, Gill writes: “We expect strong growth in 21 years given our expectations for doubling the 5G smartphone market and increasing the radio frequency content by 40-60% … We we see [TSEM] like our top 5G game with a small cap, as we believe it is particularly well positioned to take advantage of the 5G cycle (both on the smartphone side and on the infrastructure side). “Overall, Tower’s Strong Buy consensus rating is unanimous, supported by the last 3 purchase reviews. The stock has an average price of $ 27.67, an increase of 20% over the current share price of $ 23.08.” See TipEM’s stock analysis on TipRanks) To find good ideas for 5G stocks trading at attractive ratings, visit TipRanks’ Best Stock Buying, a recently launched tool that brings together all insights into TipRanks ownership. The opinions expressed in this article are only those of the analysts presented.The content is intended to be used for informational purposes only.It is very important that you make your own analysis before making any investment.