There are easy choices when it comes to 5G stocks. In the U.S., investors can simply look at the three major wireless carriers.
AT&T (NYSE:T), Verizon Communications (NYSE:VZ), and T-Mobile (NASDAQ:TMUS) all have at least the potential to benefit from 5G (fifth-generation) wireless. Faster speeds should make mobile devices more useful — which in turn should allow carriers to boost profit margins via higher pricing. That’s particularly true given that the now-closed merger between T-Mobile and Sprint removed a major competitor from the market.
The catch is that each of those stocks has questions beyond 5G. For TMUS, it’s valuation and a potentially messy, multi-year integration of its acquisition target. Meanwhile, Verizon and AT&T still generate significant but declining, profits from their wireline businesses. AT&T adds a heavy debt load and potential pressure on its WarnerMedia subsidiary.
Investors could look to device manufacturers, but at this point, the only real choice on the public markets is Apple (NASDAQ:AAPL); Android isn’t quite big enough to materially change the outlook for Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL).
After a literally historic bull run, AAPL has its own valuation concerns with a market cap north of $2 trillion. At this point, it’s tough for an investor to see much of an edge in that name given the intense coverage in the market.
But there are 5G stocks beyond the headline names, with the potential to capitalize on a trend that should last into the next decade. Here are four of those names:
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