These 3 5G Stocks Are Must-Watch Names, Say Top Analysts, , on November 5, 2020 at 3:21 pm

Financial News
By
On November 5, 2020
In Financial News
Tags:

Let’s take a short break from the election drama, and look at 5G. The new wave in networking technology, 5G has sparked an ongoing revolution in the way wireless connections are made. The new network systems offer far higher speeds, much lower latency, and greater data capacity than existing 4G networks, and the implications for high-tech are enormous. Internet of Things, autonomous cars, teledoctor facilities, streaming on demand – all of these segments look to gain from 5G, alongside ordinary cellular and mobile technology.With so many changes in the offing, it’s a cinch that some companies in 5G-related sectors are going to come out on the winning end – and they are likely to be those with direct exposure to 5G, and the ability to capitalize on one or more networking segments: from semiconductor chips, to mobile service, to connection hardware, there are plenty of opportunities in 5G for companies with the requisite skills and products.Turning to the TipRanks database, we’ve pulled up the latest on three stocks that some of Wall Street’s top analysts – stock experts with 4- and 5-star ratings – have tapped for gains in the growing 5G environment. These are companies that meet the profile above, and offer investors the prospect of strong returns.Skyworks Solutions (SWKS)We’ll start in the semiconductor chip industry, where Skyworks is a player with a successful niche. The company is closely tied to Apple (AAPL), drawing as much as 51% of its annual revenues by supplying chips to the device-making giant – and with Apple’s recent release of the 5G-capable iPhone 12, Skyworks sees the potential for steady, and profitable, sales over the next several years as up to 300 million installed iPhone users replace or upgrade their devices.Apple isn’t Skyworks’ only connection to 5G. The chip company is also an important component provider for 5G small cell units, an integral part of the wireless networking infrastructure. 5G operates at shorter range than current network technology, and the move to the new tech will involve heavy build outs of broadcast towers and other hardware.Skyworks’ potential as a provider of semiconductor chips is clear from the share performance. SWKS is up 20% year-to-date, outperforming the S&P’s 9% gain. The share gains come even as revenues slipped in 1H20 – but for investors, earnings were more important. Despite falling sequentially in both Q1 and Q2, Skyworks’ EPS beat expectations in Q2 and followed that with another beat in Q3 and 54% sequential growth to $1.59 per share.Needham analyst Rajvindra Gill writes of Skyworks, “Both broad markets and mobile grew significantly, with broad markets hitting a quarterly record. Clearly the strong Apple 5G builds helped the mobile business but SWKS also saw growth at the major Chinese handset OEMs along with Samsung. We are in the first inning of a multi-year 5G smartphone cycle, in which 5G penetration will double consecutively over the next two years to 1 billion units by 2022. Moreover, SWKS’s strong positioning in IoT, small cell and auto help diversify the revenue streams.”Gill’s comments support his Buy rating on the stock, as does his price target, raised 17% to $200 and implying a 37% one-year upside for the stock. (To watch Gill’s track record, click here)Overall, SWKS shares have a Strong Buy rating from the analyst consensus, based on 15 Buys and 5 Holds. The shares are selling for $145.84, and the $164.39 average price target suggests room for nearly 13% growth. (See SWKS stock analysis on TipRanks)Verizon Communications (VZ)The second stock on our list is Verizon, a name you’ll almost certainly be familiar with. This company is one of the market’s giants, with a market cap near $240 billion, over $130 billion in annual revenues, and a solid position as the US’ second largest wireless service provider. Verizon’s connection to 5G should be obvious – as a mobile provider, the company simply must make use of the new technology, introduce a 5G connection network, or else fold up shop.The company is not folding. Since April last year, Verizon has been building out 5G networks in major urban markets across the US. Verizon has focused its 5G build on the millimeter-wave spectrum, and section of the 5G waveband that maximizes connection speed, but at the cost of range limits and limited indoor usability.Of the stocks on this list, Verizon shows the lowest upside potential, but offers instead a high and reliable dividend payment. In its last declaration, in September for the October payment, the company announced a regular stock quarterly dividend of 62.75 cents per share. This was up 1.25 cents from the previous quarter, and marked the 14th consecutive annual dividend increase for Verizon. The yield on the dividend is 4.3%, well above the average found among Verizon’s S&P 500 peers.Covering this stock for Raymond James is 4-star analyst Frank Louthan, who rates Verizon as Outperform (i.e. Buy). His $64 price target indicates a possible 10% upside for the year ahead. (To watch Louthan’s track record, click here)Supporting his outlook, Louthan writes, “…trends improved over the course of 3Q and are more favorable across the board. We believe the biggest overhang remains on roaming revenue from foregone customer travel during the pandemic… We continue to expect incremental revenue from 5G beginning in 2021 with 5G Home and mobility followed by the mobile edge compute opportunity in 2022…”Overall, Verizon’s Moderate Buy analyst consensus rating is based on 9 reviews, including 3 Buys and 6 Holds. VZ stock has an average price target of $62.63, which suggests an 8% upside from the trading price of $58.07. (See Verizon stock analysis on TipRanks)DZS (DZSI)Last but not least is DZS, a major supplier of networking hardware, especially the cables and fiber optics necessary for the physical connection in high-speed networks. DZS provides broadband solutions and access for more than 1,000 customers – enterprises, operators, and service providers – across 100 countries around the world. In addition to networking cables and devices, DZS also offers manufacturing and engineering service and support.DZS operates worldwide, and is heavily invested in East Asia’s 5G build. The company partnered with Japanese mobile provider Rakuten last year as a technology provider, and is still reaping benefits. Japan’s 5G networks are relatively new, but tap into a market over 100 million strong – and in a country known for tech-savvy.DZS, like most of the market, suffered in 1H20 from the pandemic crisis. But, bouncing back from the pandemic’s recessionary pressures in Q3, DZS saw its best quarterly earnings in over a year. The 20 cents EPS reported beat the forecast by 15 cents, grew 122% sequentially, and was far ahead of the year-ago quarter’s net loss. This stock is another that has outperformed the broader market; DZSI has a net year-to-date gain of 38%.Covering the stock for B. Riley, 5-star analyst Dave Kang wrote, “We believe the company will receive a follow-on order from Rakuten in 4Q, which will be a major catalyst in 1H21. We believe 5G is still in the early stages of a multiyear cycle, and we believe the company is strategically positioned to capitalize on this secular trend.”Kang sets a $15 price target on DZSI, suggesting a 27% upside potential, and rates the stock a Buy. (To watch Kang’s track record, click here)All in all, the 2 recent Buy reviews on DZS give this stock a Moderate Buy rating from the analyst consensus. The shares are selling for $12.22, and their $15 average price target matches Kang’s. (See DZS’s stock analysis at TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.,

These 3 5G Stocks Are Must-Watch Names, Say Top AnalystsLet’s take a short break from the election drama, and look at 5G. The new wave in networking technology, 5G has sparked an ongoing revolution in the way wireless connections are made. The new network systems offer far higher speeds, much lower latency, and greater data capacity than existing 4G networks, and the implications for high-tech are enormous. Internet of Things, autonomous cars, teledoctor facilities, streaming on demand – all of these segments look to gain from 5G, alongside ordinary cellular and mobile technology.With so many changes in the offing, it’s a cinch that some companies in 5G-related sectors are going to come out on the winning end – and they are likely to be those with direct exposure to 5G, and the ability to capitalize on one or more networking segments: from semiconductor chips, to mobile service, to connection hardware, there are plenty of opportunities in 5G for companies with the requisite skills and products.Turning to the TipRanks database, we’ve pulled up the latest on three stocks that some of Wall Street’s top analysts – stock experts with 4- and 5-star ratings – have tapped for gains in the growing 5G environment. These are companies that meet the profile above, and offer investors the prospect of strong returns.Skyworks Solutions (SWKS)We’ll start in the semiconductor chip industry, where Skyworks is a player with a successful niche. The company is closely tied to Apple (AAPL), drawing as much as 51% of its annual revenues by supplying chips to the device-making giant – and with Apple’s recent release of the 5G-capable iPhone 12, Skyworks sees the potential for steady, and profitable, sales over the next several years as up to 300 million installed iPhone users replace or upgrade their devices.Apple isn’t Skyworks’ only connection to 5G. The chip company is also an important component provider for 5G small cell units, an integral part of the wireless networking infrastructure. 5G operates at shorter range than current network technology, and the move to the new tech will involve heavy build outs of broadcast towers and other hardware.Skyworks’ potential as a provider of semiconductor chips is clear from the share performance. SWKS is up 20% year-to-date, outperforming the S&P’s 9% gain. The share gains come even as revenues slipped in 1H20 – but for investors, earnings were more important. Despite falling sequentially in both Q1 and Q2, Skyworks’ EPS beat expectations in Q2 and followed that with another beat in Q3 and 54% sequential growth to $1.59 per share.Needham analyst Rajvindra Gill writes of Skyworks, “Both broad markets and mobile grew significantly, with broad markets hitting a quarterly record. Clearly the strong Apple 5G builds helped the mobile business but SWKS also saw growth at the major Chinese handset OEMs along with Samsung. We are in the first inning of a multi-year 5G smartphone cycle, in which 5G penetration will double consecutively over the next two years to 1 billion units by 2022. Moreover, SWKS’s strong positioning in IoT, small cell and auto help diversify the revenue streams.”Gill’s comments support his Buy rating on the stock, as does his price target, raised 17% to $200 and implying a 37% one-year upside for the stock. (To watch Gill’s track record, click here)Overall, SWKS shares have a Strong Buy rating from the analyst consensus, based on 15 Buys and 5 Holds. The shares are selling for $145.84, and the $164.39 average price target suggests room for nearly 13% growth. (See SWKS stock analysis on TipRanks)Verizon Communications (VZ)The second stock on our list is Verizon, a name you’ll almost certainly be familiar with. This company is one of the market’s giants, with a market cap near $240 billion, over $130 billion in annual revenues, and a solid position as the US’ second largest wireless service provider. Verizon’s connection to 5G should be obvious – as a mobile provider, the company simply must make use of the new technology, introduce a 5G connection network, or else fold up shop.The company is not folding. Since April last year, Verizon has been building out 5G networks in major urban markets across the US. Verizon has focused its 5G build on the millimeter-wave spectrum, and section of the 5G waveband that maximizes connection speed, but at the cost of range limits and limited indoor usability.Of the stocks on this list, Verizon shows the lowest upside potential, but offers instead a high and reliable dividend payment. In its last declaration, in September for the October payment, the company announced a regular stock quarterly dividend of 62.75 cents per share. This was up 1.25 cents from the previous quarter, and marked the 14th consecutive annual dividend increase for Verizon. The yield on the dividend is 4.3%, well above the average found among Verizon’s S&P 500 peers.Covering this stock for Raymond James is 4-star analyst Frank Louthan, who rates Verizon as Outperform (i.e. Buy). His $64 price target indicates a possible 10% upside for the year ahead. (To watch Louthan’s track record, click here)Supporting his outlook, Louthan writes, “…trends improved over the course of 3Q and are more favorable across the board. We believe the biggest overhang remains on roaming revenue from foregone customer travel during the pandemic… We continue to expect incremental revenue from 5G beginning in 2021 with 5G Home and mobility followed by the mobile edge compute opportunity in 2022…”Overall, Verizon’s Moderate Buy analyst consensus rating is based on 9 reviews, including 3 Buys and 6 Holds. VZ stock has an average price target of $62.63, which suggests an 8% upside from the trading price of $58.07. (See Verizon stock analysis on TipRanks)DZS (DZSI)Last but not least is DZS, a major supplier of networking hardware, especially the cables and fiber optics necessary for the physical connection in high-speed networks. DZS provides broadband solutions and access for more than 1,000 customers – enterprises, operators, and service providers – across 100 countries around the world. In addition to networking cables and devices, DZS also offers manufacturing and engineering service and support.DZS operates worldwide, and is heavily invested in East Asia’s 5G build. The company partnered with Japanese mobile provider Rakuten last year as a technology provider, and is still reaping benefits. Japan’s 5G networks are relatively new, but tap into a market over 100 million strong – and in a country known for tech-savvy.DZS, like most of the market, suffered in 1H20 from the pandemic crisis. But, bouncing back from the pandemic’s recessionary pressures in Q3, DZS saw its best quarterly earnings in over a year. The 20 cents EPS reported beat the forecast by 15 cents, grew 122% sequentially, and was far ahead of the year-ago quarter’s net loss. This stock is another that has outperformed the broader market; DZSI has a net year-to-date gain of 38%.Covering the stock for B. Riley, 5-star analyst Dave Kang wrote, “We believe the company will receive a follow-on order from Rakuten in 4Q, which will be a major catalyst in 1H21. We believe 5G is still in the early stages of a multiyear cycle, and we believe the company is strategically positioned to capitalize on this secular trend.”Kang sets a $15 price target on DZSI, suggesting a 27% upside potential, and rates the stock a Buy. (To watch Kang’s track record, click here)All in all, the 2 recent Buy reviews on DZS give this stock a Moderate Buy rating from the analyst consensus. The shares are selling for $12.22, and their $15 average price target matches Kang’s. (See DZS’s stock analysis at TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

,

Instant Quote

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

High West Capital Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

High West Capital Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with High West Capital Partners, LLC’s internal lending policies. High West Capital Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Singapore

168 Robinson Road,
Capital Tower, Singapore 068912
+65 3105 1295

Taiwan

5th Floor, No. 1-8, Section 5, Zhongxiao East Road, Taipei

Hong Kong

R91, 3rd Floor,
Eton Tower, 8 Hysan Ave.
Causeway Bay, Hong Kong
+852 3002 4462

Australia

44 Martin Place, Sydney 2000 Australia
+02 8319 3232

Indonesia

Millennium Centennial Center, 38th Floor, Jl. Jend. Sudirman Kav. 25
Jakarta 12920, Indonesia

Market Coverage