12 Best 5G Stocks To Buy Now

Published on November 14, 2022 at 4:48 pm by Hamna Asim in Hedge Funds, News

In this article, we discuss 12 best 5G stocks to buy now. If you want to see more stocks in this selection, click 5 Best 5G Stocks To Buy Now.

As per Allied Market Research, the global 5G technology market was valued at $5.3 billion in 2020, and it is expected to be worth $797.7 billion by 2030, growing at a CAGR of 65.8% from 2021 to 2030. According to Precedence Research, the global 5G IoT market size is forecasted to be worth approximately $297.1 billion by 2030, with a registered CAGR of 70.04% over the forecast period of 2022 to 2030. 5G IoT is a new variant of wireless technology which features a combination of fast speed, low latency, broad bandwidth, and augmented power efficiency.

The demand for 5G technology rose during the COVID-19 outbreak as people needed higher internet speed to work remotely and shift entirely to online channels. Growing demand for quicker and high-speed data connectivity, combined with advancing digitization and technological developments are some of the factors that will support the market growth in the future.

Some of the best 5G stocks to watch out for in order to benefit from the industry growth include T-Mobile US, Inc. (NASDAQ:TMUS), Advanced Micro Devices, Inc. (NASDAQ:AMD), and AT&T Inc. (NYSE:T).

Our Methodology

We selected the following 5G stocks based on positive analyst coverage, strong business fundamentals, and future growth prospects. We have assessed the hedge fund sentiment from Insider Monkey’s database of 895 elite hedge funds tracked as of the end of the second quarter of 2022.

Photo by Taylor Vick on Unsplash

Best 5G Stocks To Buy Now

12. Vodafone Group Public Limited Company (NASDAQ:VOD)

Number of Hedge Fund Holders: 15

Vodafone Group Public Limited Company (NASDAQ:VOD) was incorporated in 1984 and is based in Newbury, the United Kingdom. The company engages in telecommunication services in Europe and internationally. On November 9, International Business Machines Corporation (NYSE:IBM) announced that it is partnering with Vodafone Group Public Limited Company (NASDAQ:VOD) on quantum-safe cybersecurity.

On October 4, Oddo BHF analyst Stephane Beyazian upgraded Vodafone Group Public Limited Company (NASDAQ:VOD) to Outperform from Neutral with a price target of 142 GBp, up from 140 GBp. The analyst sees the shares as too low into the sale of its Hungary unit, acquisition of Nowo in Portugal, and merger talks with Three UK.

According to Insider Monkey’s data, 15 hedge funds were long Vodafone Group Public Limited Company (NASDAQ:VOD) at the end of the second quarter of 2022, compared to 14 funds in the prior quarter. Jim Simons’ Renaissance Technologies is the largest stakeholder of the company, with nearly 24 million shares worth $372.5 million.

Like T-Mobile US, Inc. (NASDAQ:TMUS), Advanced Micro Devices, Inc. (NASDAQ:AMD), and AT&T Inc. (NYSE:T), Vodafone Group Public Limited Company (NASDAQ:VOD) is one of the elite 5G stocks to monitor.

11. Nokia Oyj (NYSE:NOK)

Number of Hedge Fund Holders: 20

Nokia Oyj (NYSE:NOK) is a Finland-based company that provides mobile, fixed, and cloud network solutions worldwide. The company operates through four segments – Mobile Networks, Network Infrastructure, Cloud and Network Services, and Nokia Technologies. It is one of the premier 5G stocks to invest in.

On October 20, Nokia Oyj (NYSE:NOK) reported a Q3 non-GAAP EPS of €0.10, exceeding analysts’ estimates by €0.01. The revenue climbed 16% year-over-year to €6.2 billion, outperforming Wall Street consensus by €130 million. Full-year net sales outlook for 2022 came in at EUR 23.9 billion to EUR 25.1 billion, up from the prior EUR 23.5 billion to EUR 24.7 billion revenue outlook.

Deutsche Bank analyst Robert Sanders on November 9 maintained a Buy rating on Nokia Oyj (NYSE:NOK) but lowered the firm’s price target on the shares to EUR 5.50 from EUR 6.

Among the hedge funds tracked by Insider Monkey, 20 funds reported owning stakes worth $309.3 million in Nokia Oyj (NYSE:NOK) at the end of June 2022, compared to 22 funds in the prior quarter worth $565.2 million. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital held the leading stake in the company, with approximately 24 million shares valued at $110 million.

10. Qorvo, Inc. (NASDAQ:QRVO)

Number of Hedge Fund Holders: 30

Qorvo, Inc. (NASDAQ:QRVO) is a North Carolina-based company that develops and commercializes technologies and products for wireless, wired, and power markets worldwide. It is one of the best 5G stocks to invest in. In addition to posting market-beating Q3 results, Qorvo, Inc. (NASDAQ:QRVO) announced a new stock repurchase program of up to $2 billion on November 2.

Benchmark analyst Cody Acree on November 3 maintained a Buy recommendation on Qorvo, Inc. (NASDAQ:QRVO) but trimmed the price target on the shares to $120 from $152. Qorvo, Inc. (NASDAQ:QRVO) reported September quarter revenue and EPS above the midpoint of its outlook and the consensus view, but its positive results were “largely overshadowed” by its pessimistic December quarter outlook, the analyst told investors. However, he believes Qorvo, Inc. (NASDAQ:QRVO) remains well positioned for the long-term competitively and that it is “simply echoing the same difficult market environment as other component vendors.”

According to Insider Monkey’s Q2 data, 30 hedge funds were bullish on Qorvo, Inc. (NASDAQ:QRVO), compared to 33 funds in the last quarter. Seth Klarman’s Baupost Group held the largest stake in the company, comprising nearly 7 million shares worth $657 million.

Here is what Vulcan Value Partners has to say about Qorvo, Inc. (NASDAQ:QRVO) in its Q1 2022 investor letter:

“Qorvo Inc. is one of the two major providers of radio frequency RF systems which are critical components of mobile devices including smartphones and the Internet of Things (IoT). Two transitory concerns have recently affected the company’s stock price. First, supply chain issues continue to be a constraint. Second, Apple recently announced its decision to decrease production of its iPhone SE model. Neither of these issues threatens their long-term competitive position. Qorvo’s value is stable and despite the recent pressure on the stock price, we feel its long-term prospects are promising.”

9. DISH Network Corporation (NASDAQ:DISH)

Number of Hedge Fund Holders: 41

DISH Network Corporation (NASDAQ:DISH) is a Colorado-based company that provides pay-TV services in the United States. The company operates in two segments, Pay-TV and Wireless. It is one of the top 5G stocks to monitor. On November 7, DISH Network Corporation (NASDAQ:DISH) priced a $2 billion offering of its 11.75% senior secured notes due 2027. The notes will be issued at 98.171% of the principal amount. The debt offering is expected to conclude on November 15.

Raymond James analyst Ric Prentiss on November 3 reiterated a Strong Buy rating on DISH Network Corporation (NASDAQ:DISH) but trimmed the price target on the shares to $28 from $36 following the Q3 earnings and the offer of $2 billion in spectrum securitized notes by the 5G Network Deployment segment to start self financing.

According to the second quarter database of Insider Monkey, 41 hedge funds were bullish on DISH Network Corporation (NASDAQ:DISH), compared to 48 funds in the preceding quarter. Boykin Curry’s Eagle Capital Management is the leading position holder in the company, with approximately 17 million shares worth $303.3 million.

Here is what ClearBridge Investments has to say about DISH Network Corporation (NASDAQ:DISH) in its Q2 2021 investor letter:

“Portfolio holdings in the communication services and financial sectors also made strong contributions. Dish Network continues to make progress on the buildout of its greenfield 5G network, with Las Vegas slated to become the first market launched later this year. The company gained credibility, and its stock reacted favorably, after it announced a partnership with Amazon to deploy a 5G cloud-native network using AWS’s cloud infrastructure. While the stock has been volatile in recent quarters, we continue to feel confident in Dish’s long-term prospects, which include competing as a fourth U.S. wireless carrier. Charter Communications has been executing well and benefiting from the growth in residential broadband, which has been accelerated by COVID-19 and should see further support from the Biden Administration’s infrastructure bill, which earmarks $65 billion for broadband buildout. In addition, we expect the company to continue to grow its wireless business, leveraging its mobile virtual network operator (MVNO) relationship with Verizon. The company continues to generate strong and growing free cash flow and deploys it toward consistent and material share buybacks.”

8. Arista Networks, Inc. (NYSE:ANET)

Number of Hedge Fund Holders: 48

Arista Networks, Inc. (NYSE:ANET) is a California-based company that develops, markets, and sells cloud networking solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Arista Networks, Inc. (NYSE:ANET) is one of the best 5G stocks to monitor. On October 31, the company posted a Q3 non-GAAP EPS of $1.25 and a revenue of $1.17 billion, topping Wall Street consensus by $0.20 and $110 million, respectively. The revenue climbed 57% on a year-over-year basis.

On November 7, Credit Suisse analyst Sami Badri raised the firm’s price target on Arista Networks, Inc. (NYSE:ANET) to $140 from $119 and kept a Neutral rating on the shares. Starting in fiscal 2023, Arista Networks, Inc. (NYSE:ANET) is looking to expand its product and service offerings by penetrating new markets and expanding its TAM to $50 billion, the analyst noted.

Among the hedge funds tracked by Insider Monkey, 48 funds reported owning stakes in Arista Networks, Inc. (NYSE:ANET) at the end of Q2 2022, compared to 41 funds in the last quarter. Steve Cohen’s Point72 Asset Management is the largest stakeholder of the company, with 1.89 million shares worth $177.2 million.

Here is what Artisan Mid Cap Fund has to say about Arista Networks, Inc. (NYSE:ANET) in its Q4 2021 investor letter:

“Arista Networks is the market leader for cloud networking equipment used in data centers for public, private and hybrid cloud deployments. The company’s top line growth has recently been bolstered by 400G deployments—the next generation of tech powering data centers—and further enterprise network penetration as customers migrate away from Cisco (~80% market share vs. ~5% for Arista). While the profit cycle is nicely in motion, we pared our exposure as shares began to approach our PMV estimate.”

7. Crown Castle Inc. (NYSE:CCI)

Number of Hedge Fund Holders: 48

Crown Castle Inc. (NYSE:CCI) operates and leases cell towers and provides fiber solutions across every major U.S. market. It is one of the best 5G stocks to buy now. On October 20, Crown Castle Inc. (NYSE:CCI) declared a $1.565 per share quarterly dividend, a 6.5% increase from its prior dividend of $1.470. The dividend is payable December 30, to shareholders of record on December 15. The dividend yield on November 14 came in at 4.46%.

On October 26, RBC Capital analyst Jonathan Atkin maintained an Outperform rating on Crown Castle Inc. (NYSE:CCI) but lowered the price target on the shares to $150 from $202. The company’s Q3 results were in-line, but the analyst reiterated a more conservative target multiple given the difficult macroeconomic backdrop. Crown Castle Inc. (NYSE:CCI) and towers overall are still well positioned to recover once the macro and financing conditions stabilize, the analyst added.

According to Insider Monkey’s data, 48 hedge funds were bullish on Crown Castle Inc. (NYSE:CCI) at the end of June 2022, compared to 50 funds in the last quarter. Ken Fisher’s Fisher Asset Management held the leading stake in the company, with 2.8 million shares worth $485.7 million.

Here is what ClearBridge Investments Global Infrastructure Income Strategy has to say about Crown Castle International Corp. (NYSE:CCI) in its Q1 2022 investor letter:

“U.S. communications company Crown Castle International (NYSE:CCI) was the largest detractor from quarterly performance. Crown Castle is the leading independent owner and operator of wireless communications infrastructure in the U.S. with a portfolio of approximately 40,000 towers. The stock underperformed as, driven by rising interest rates, investors rotated away from defensive into more value-oriented sectors. Communications infrastructure remains attractive, however, as companies continue to deploy greater capital spend to support the strong tailwinds from 5G.”

6. American Tower Corporation (NYSE:AMT)

Number of Hedge Fund Holders: 52

American Tower Corporation (NYSE:AMT) is one of the largest global REITs that owns, operates, and develops multi-tenant communications real estate with thousands of communications sites. On October 27, American Tower Corporation (NYSE:AMT) said that alternative investment firm Stonepeak would invest $570 million in American Tower Corporation (NYSE:AMT)’s U.S. data center business.

On November 14, Barclays analyst Brendan Lynch raised the price target on American Tower Corporation (NYSE:AMT) to $247 from $232 and kept an Overweight rating on the shares following the Q3 results.

According to the second quarter database of Insider Monkey, 52 hedge funds were long American Tower Corporation (NYSE:AMT), compared to 50 funds in the prior quarter. Charles Akre’s Akre Capital Management is the biggest position holder in the company, with approximately 7 million shares worth $1.8 billion.

In addition to T-Mobile US, Inc. (NASDAQ:TMUS), Advanced Micro Devices, Inc. (NASDAQ:AMD), and AT&T Inc. (NYSE:T), American Tower Corporation (NYSE:AMT) is one of the best 5G stocks to invest in.

Here is what Baron Real Estate Fund has to say about American Tower Corporation (NYSE:AMT) in its Q2 2022 investor letter:

“American Tower is a leading global tower company with 220,000 communication sites globally and over 40,000 in the U.S. We added to our position during the market dislocation and as it became increasingly clear that the company would put permanent equity financing in place at better-than-expected terms for its previously announced acquisition of CoreSite (thereby removing the “equity overhang”).

In addition, the company stepped back from a large potential deal in Europe, which would have required significant incremental funding, due to unfavorable contract terms and price. This decision further reinforced our confidence in management’s capital allocation discipline knowing that these were highly sought-after assets.”

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