We recently published a list of 10 Best 5G Stocks to Invest in According to Analysts. In this article, we are going to take a look at where Crown Castle Inc. (NYSE:CCI) stands against other best 5G stocks to invest in according to analysts.
5G technology is the fifth generation of wireless cellular technology that offers significant improvements in speed, latency, and capacity. The 5G technology industry is expected to experience rapid growth, fueled by the technology’s potential to revolutionize various sectors such as telecommunications, the Internet of Things (IoT), and private networks. According to a report by The Business Research Company, the global 5G technology market was valued at $27.91 billion in 2024. The market is expected to grow exponentially at a compound annual growth rate (CAGR) of 46.7% during 2025-2029 to reach a value of $210.98 billion by the end of the forecast period. In 2024, North America was the largest region in the global 5G technology market.
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This growth in the 5G technology industry is supported by the growing demand for high-speed data connections and low latency, which are crucial for various new technologies and applications. Technologies like self-driving cars, advanced gaming, and live streaming require high-speed data connections. Additionally, the rise of new technologies such as IoT, Artificial Intelligence (AI), and automation is leading to a surge in the amount of data created, further driving the demand for 5G connectivity.
In March 2024, CNBC reported that telecom operators are still rolling out 5G wireless mobile networks, but are already talking about creating “5.5G” or “5G Advanced.” This was a major topic of discussion at the Mobile World Congress in Barcelona, where leading telecom companies shared their plans for the development of a new generation of mobile internet technology.
This technology could power more advanced applications in the future, including mixed-reality headsets. Additionally, its applications could also include self-driving cars, unpiloted air taxis, and smart manufacturing.
Milind Kulkarni, the vice president and head of InterDigital’s wireless labs, told CNBC that the main reason for developing 5G Advanced standards is to make 5G more commercially relevant by expanding into different industries, resolving deployment problems, and continuing to improve the technology to create a bridge towards the next generation of wireless networks, known as 6G.
He further pointed out that researchers have been working on new enterprise-specific features for 5G Advanced that are designed for businesses. These include network slicing, the integration of private and public networks, and customized applications that are tailored to meet the specific needs of different industries.
The benefits and applications of 5G technology seem to be vast and virtually boundless, with significant opportunities for innovation and growth.
Methodology
To compile our list of the 10 best 5G stocks to invest in according to analysts, we reviewed our own rankings, financial media reports, and various online resources to compile a list of the best 5G stocks. Next, we focused on the top 5G stocks that analysts believe have the most potential for growth. We ranked the 10 best 5G stocks to buy based on their average price target upside potential according to analysts as of January 24, 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q3 2024 database of 900 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of an array of cell towers on a distant hilltop.
Crown Castle Inc. (NYSE:CCI)
Average Price Target Upside Potential According to Analysts: 33.35%
Number of Hedge Fund Holders: 34
Crown Castle Inc. (NYSE:CCI) is a real estate investment trust (REIT) and provider of shared communications infrastructure in the US. The company owns and leases over 40,000 cell towers and about 90,000 route miles of fiber supporting small cells and fiber solutions across major US markets. Crown Castle Inc. (NYSE:CCI) plays a vital role in the telecommunications infrastructure market, driven by the rapid rollout of 5G networks and the growing demand for high-speed connectivity.
The company has many clients, including wireless carriers, government agencies, and other businesses. Crown Castle Inc. (NYSE:CCI) has established significant partnerships with major wireless carriers to help provide 5G services. In January 2022, the company signed a 12-year agreement with T-Mobile US to support the continued build-out of T-Mobile’s 5G nationwide network with access to Crown Castle’s towers and small cell locations. Crown Castle Inc. (NYSE:CCI) has provided crucial support to T-Mobile, which offers one of the country’s largest, fastest, and most reliable 5G networks. This agreement is also expected to help Crown Castle Inc. (NYSE:CCI) generate long-term revenue growth. Previously, in January 2021, the company announced an agreement to support Verizon’s 5G Ultra Wideband and 5G Nationwide deployment by leasing 15,000 new small cells.
The company is positioned well to benefit from the rapid roll-out of 5G services by wireless carriers, which is driving demand for communication infrastructure required to support the fast data. Crown Castle Inc. (NYSE:CCI) is also strategically focused on improving profitability and operational excellence. In the fourth quarter of 2024, the company concluded discussions with its customers and decided to cancel about 7,000 greenfield small cell nodes. The cancellation is expected to help increase the value of the remaining nodes and also improve the company’s capital efficiency in the future.
Overall, CCI ranks 3rd on our list of best 5G stocks to invest in according to analysts. While we acknowledge the potential of 5G companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CCI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
