The 5G industry is experiencing continuous growth due to increasing demand for faster data speeds and services, changing industry sentiment, and technology advancements. Also, supportive government initiatives and rapid adoption of modern technology will increase demand and open more avenues to the market in the future.
Given the industry’s promising outlook, investors may consider buying blue-chip 5G stocks Qualcomm Inc. (QCOM) and Verizon Communications Inc. (VZ) for the next technology revolution.
Among the current technological advancements around the world, 5G technology has mainly triggered a wave of innovation across multiple fields. This technology is transforming various sectors and changing the way they operate. Additionally, this technological revolution is set to continue to scale in the coming years.
Since its rollout in 2019, 5G technology has grown by leaps and bounds. More than 62% of smartphones now have 5G connectivity, and the number of networks is increasing, with major internet service providers offering 5G connectivity for homes and businesses.
Additionally, the Federal Communications Commission (FCC) has established the 5G Fund for Rural America. This makes up to $9 billion in Universal Service Fund support available to deploy advanced 5G mobile wireless services in rural America. This will once again increase the importance of 5G networks in the modern era.
With this, the global 5G services market size is expected to reach approximately $2.21 trillion by 2030, growing at a remarkable CAGR of 59.4%. The need for high-speed data connectivity for integrated Internet of Things (IoT) applications, such as smart home energy management, is driving market growth.
Given the robust outlook for the industry, it may be wise to invest in QCOM and VZ, two fundamentally strong 5G stocks.
Let’s discuss the fundamentals of these stocks in detail.
Qualcomm Inc. (QCOM)
QCOM is committed to developing and commercializing foundational technologies for the wireless industry worldwide. The company operates in three segments. Qualcomm CDMA Technologies. Qualcomm Technology License; Qualcomm’s Strategic Initiatives.
On October 16, QCOM announced a quarterly cash dividend of $0.85 per common share, payable on December 19, 2024 to shareholders of record as of the close of business on December 5, 2024. are.
QCOM’s annual dividend is $3.40, giving it a yield of 2.02% at the current stock price. The average dividend yield over four years is 2.09%. Additionally, the company’s dividends have grown at a CAGR of 7.1% over the past three years. QCOM has increased its dividend for 20 consecutive years.
On September 25, Aramco, a subsidiary of QCOM, and the Saudi Arabian Research, Development and Innovation Authority (RDIA) announced the launch of Design in Saudi Arabia (DISA), a Saudi Arabian incubator program aimed at supporting startups implementing AI and the internet. ) has been announced. Objects of Things (IoT) and wireless technologies for industrial use cases.
QCOM’s revenue for the third quarter ended June 23, 2024 was $9.39 billion, an increase of 11.2% year over year. Non-GAAP operating income was $3.02 billion, an increase of 19.7% from the prior year period. The company’s non-GAAP net income and EPS were $2.65 billion and $2.33, respectively, up 25.8% and 24.6% year over year.
Analysts expect QCOM’s fourth quarter EPS (ending September 2024) to be $2.57, up 27% year over year. The company’s revenue for the quarter is expected to be $9.93 billion, up 14.6% from the same period last year. What’s more, the company has surpassed consensus revenue and EPS estimates in each of the trailing four quarters, which is great.
QCOM stock has increased 2.7% over the past six months and 53.7% over the past year, closing at $168.10.
QCOM’s POWR rating reflects its solid outlook. The stock has an overall rating of B, which equates to a Buy according to our proprietary rating system. POWR ratings are calculated by considering 118 different factors, each weighted to the best degree.
The quality of the stock is A grade. Ranked #2 out of 91 stocks in the Semiconductor and Wireless Chips industry.
Click here to access additional QCOM ratings on Stability, Momentum, Value, Sentiment, and Growth.
Verizon Communications Inc. (VZ)
VZ provides communications, technology, information and entertainment products and services to consumers, businesses and government agencies around the world. The company operates through the Verizon Consumer Group and Verizon Business Group segments.
On October 23, Verizon Frontline announced two new deployable asset prototypes designed to support the mission-critical communications needs of first responders during public safety operations. Two new Verizon Frontline prototype assets can establish their own off-grid networks, allowing first responders to communicate with each other even in difficult situations.
On October 22, VZ updated its broadband strategy, adding new fixed wireless subscriber targets, household targets, and broadband products. This will facilitate premium broadband and mobility services to millions more customers across the country.
For the third quarter ended September 30, 2024, VZ reported total operating revenue of $33.33 billion and operating income of $5.93 billion. Net income and EPS for the quarter were $3.41 billion and $0.78, respectively.
Additionally, the company’s cash and cash equivalents were $4.99 billion as of September 30, 2024, compared to $2.06 billion as of December 31, 2023.
Analysts expect VZ’s fourth-quarter sales (ending December 2024) to be $35.45 billion, up 0.9% year-on-year, and EPS for the same period to be $1.11, up 3% year-on-year. I am doing it. It also beat consensus EPS estimates in three of the trailing four quarters.
VZ stock has increased 6% in the past six months and 22% in the past year, closing at $41.86.
The fundamentals of the VZ’s sound are reflected in its POWR ratings. The stock has an overall rating of “B”, which equates to a “buy” according to our proprietary rating system.
Stock stability is B grade. In the Domestic Telecommunications industry, VZ ranks 3rd out of 19 stocks.
Click here to access other ratings for VZ on Momentum, Sentiment, Value, Quality and Growth.
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QCOM stock was trading at $170.68 per share on Friday afternoon, up $2.58 (+1.53%). Year-to-date, QCOM has gained 19.71%. In comparison, the benchmark S&P 500 index rose 23.06% during the same period.
About the author: Rjkumari Saxena
Rajkumari started her career as a writer, but with her academic background in the commercial field, she gradually shifted her focus to financial journalism. Fascinated by the interplay of business and economic changes in equities, she hopes to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to provide investors with insights that lead to profitable decisions. more…
