Top 3 US 5G stocks to watch in 2022

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Top 3 US 5G stocks to watch in 2022

 Top 3 US 5G stocks to watch in 2022
Image source: Pixels Hunter,Shutterstock

Highlights

  • T-Mobile US, Inc.’s (NASDAQ: TMUS) revenue rose 4.1% YoY in Q3, FY21.
  • Qualcomm Incorporated (NASDAQ: QCOM) expects its IoT revenue to surge up to US$9 billion in fiscal 2024.
  • Verizon Communications Inc. (NYSE: VZ) raised its guidance for wireless service revenue to 4%, from its previous forecast of 3.5%.

The national 5G networks went online in 2020, but this advanced technology is expected to roll out for years while fueling gains for the global economy. Tech firms, including small tech companies to infrastructure companies, will manufacture 5G equipment and other related products for delivering 5G services while providing gains in various sectors.

In addition, consumers would also upgrade their smartphones and other devices that could connect to 5G networks, helping the electronic and smartphone industry to grow. The upgrading to 5G has already started and is expected to hold investors' attention in the coming times. Here we explore three 5G stocks, that may continue to be in the limelight next year.

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5G stocks: T-Mobile (TMUS), Qualcomm (QCOM), Verizon (VZ)

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T-Mobile US, Inc. (NASDAQ: TMUS)

T-Mobile US is a wireless network operating firm that delivers advanced 4G and transformative nationwide 5G networks for reliable connectivity. It is based out of Bellevue, Washington.

The stock of the company was priced at US$118.48 at 6:00 am ET on December 16, up 0.05% in pre-market trading. The TMUS stock tumbled 10.58% YTD.

The market cap of the company is US$147.91 billion, the P/E ratio is 44.35, and the forward P/E one year is 52.40. Its EPS is US$2.67.

The stock saw the highest price of US$150.20 and the lowest price of US$106.70 in the last 52 weeks. Its share volume on December 15 was 4,035,294.

The total revenue of the company was US$14.72 billion in Q3, FY21, up 4.1% from US$14.13 billion in the same quarter of the previous year. Its net income came in at US$691 million, or US$0.55 per diluted share, as compared to US$1.25 billion, or US$1.00 per diluted share in Q3, FY20.

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Qualcomm Incorporated (NASDAQ: QCOM)

Qualcomm is a semiconductor manufacturing firm that owns patents to 5G, 4G, and other mobile communication standards and offers its services to the wireless technology sector. It is based in San Diego, California.

The shares of the company traded at US$190.73 at 6:11 am ET on December 16, up 0.77% in pre-market trading. Its stock value increased by 27.46% YTD.

The firm has a market cap of US$211.99 billion, a P/E ratio of 24.05, and a forward P/E one year of 19.82. Its EPS is US$7.87.

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The 52-week highest and lowest stock prices were US$191.30 and US$122.17, respectively. Its trading volume was 11,082,020 on December 15.

The firm expects its addressable opportunity to surge from around US$100 billion today to US$700 billion through the next decade, as more devices are becoming intelligently connected. In addition, the firm expects its automotive revenue to surge to about US$3.5 billion in the next five years and around US$8 billion in the next 10 years while projecting its IoT revenue to increase up to US$9 billion in fiscal 2024.

The company's revenue was US$9.33 billion in Q4, FY21, representing an increase of 12% YoY. On a GAAP basis, it reported a net income of US$2.79 billion, or US$2.45 per diluted share, as compared to US$2.96 billion, or US$2.58 per diluted share in Q4, FY20.

For full fiscal 2021, the company's net income was US$9.04 billion on revenue of US$33.56 billion.

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5G stocks to explore in 2021

Source: Pixabay

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Verizon Communications Inc. (NYSE: VZ)

Verizon is a telecommunication conglomerate firm based in New York. It offers a range of 5G services that includes 5G Ultra-Wideband, 5G Nationwide, 5G Home, 5G for business.

The stock of the company was priced at US$50.54 at 6:20 am ET on December 16, down by 0.02% in pre-market trading. The VZ stock plummeted 14.1% YTD.

The market cap of the company is US$212.19 billion, the P/E ratio is 9.48, and the forward P/E one year is 9.40. Its EPS is US$5.33.

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The stock saw the highest price of US$60.78 and the lowest price of US$49.69 in the last 52 weeks. Its share volume on December 15 was 24,115,730.

The company's operating revenue jumped 4.3% YoY to US$32.9 billion in Q3, FY21. Its net income came in at US$6.6 billion, representing an increase of 45.5% from the same quarter of the previous year.

The company now expects its total wireless service revenue to grow 4%, up from its previous forecast of 3.5%. It also raised its adjusted EPS guidance for full fiscal 2021 to be between US$5.35 and US$5.40, from its previous guidance range of US$5.25 to US$5.35 per share.

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Bottom line:

Some experts suggest growth in the sector, with the surging digitalization and global shift towards technology. Meanwhile, the Covid-19 pandemic has accelerated the trend. The S&P 500 Communication Services sector soared 19.98% YTD.

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