If you want to invest in 5G technology, pay attention to my list of the top 3 best 5G stocks to buy. It is worth mentioning 5G is the newest wireless technology with lower latency and download speeds up to 100 times faster than the 4G.
The top 3 best 5G stocks to buy
Widepoint (WYY) analysis
Widepoint is an IT company with products, services, and solutions for commercial companies, federal and state governments. WYY has long-term government contracts. What can be better?
The market cap is only $ 73 million. However, the company has the potential to add $500 million in revenue. Another good thing for investors Widepoint is debt-free. But, there are some minuses also. The main risk for investors is significant insider selling over the last 3 months. PEG ratio is 1.3.
Franklin Wireless (FKWL) analysis
The company provides intelligent wireless solutions. Its products include mobile hotspots, routers, trackers, and other devices. It integrates hardware and software enabling machine-to-machine (M2M) applications and the Internet of Things (IoT). In other words, a company is a player in a wide range of markets, not only 5G. Recently FKWL announced Pintrac Drive, an aftermarket On-Board Diagnostic (OBDII) device that enables non-connected cars to connect to global 4G LTE networks for enhanced services and broadband wireless connectivity. It allows smart tracking of vehicles on the road.
The market cap of this company is only $250 million. By the way, Franklin Wireless announced recently the collaboration with Qualcomm. Also, the company partners with Patron for the 5G business and technology solutions to the world-wide market. FKWL reports a 160% increase in revenue to $75 million. At the same time operating expenses declined over 5% to $7.4 million. The company increased its research and development expenses by 27% vs last year. It is a very good sign for long-term investors. The company is trying to take leading positions in innovations. As you see Franklin Wireless is very strong and has big potential growth. PEG ratio is 0.7.
However, there is significant insider selling over the past 3 months. It is the main risk for this stock.
Qualcomm (QCOM) analysis
Qualcomm is the major 5G player. It is a semiconductor supplier that also collects royalties on its wireless technology patents. Apple recently announced all of its 5G iPhone 12 models will support millimeter-wave capabilities. Qualcomm is the only RF vendor that has millimeter-wave solutions shipping at large volumes. Most developed global economies are expected to deploy millimeter wave spectrum by the end of 2021. The company pays dividends at 1.66%. There are also few risks when it comes to investing in QCOM. The PEG ratio is very high – 3.4. Besides, the company has a high level of debt.
The 5G industry has a big potential in the long-term perspective. However, there are a number of risks in this sector. I don’t have any positions in 5G stocks yet. But if you want to know when I start buying, make sure you have subscribed to my market research.
Top 3 best 5G stocks to buy now by Inna Rosputnia
Wishing you a great week!