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Note: even if you are not a 5G fan, give this article a chance – you never know when you will have a good deal of luck.
5G connection is a poignant topic for the current generation. A couple of years ago, every second headline promised that this technology would be available to everyone in just under a year. However, since then the world has switched its attention to more vital issues, leaving 5G business in the shade. But, this technology has continued to develop in the background and is likely to come back into focus at some point. So, is it about time for investors to dig into the 5G market?
When we say 5G stocks, we mean the many companies that develop 5G technology. Apple or Intel are not something new and rare, these are household names. But there are less-known brands that analysts think could be a welcome surprise for you over the next twelve months. So, let’s talk about them.
The first one is owned by Genius, Billionaire, Playboy, Philanthropist. Ok, ok, ok – just kidding! Marvell Technology, Inc. has nothing to do with Tony Stark, though the name obliges. This company is engaged in the provision of data infrastructure and semiconductor solutions.
Besides cloud and automotive infrastructure development, which have the potential to see impressive growth in the near future, one of the most promising directions for the company as you may have guessed is 5G infrastructure.
One of the possible reasons for Marvell’s growth potential is a recent deal that saw the brand join Vodafone and Samsung Electronics to accelerate work on 5G networks across Europe – the key here is Marvell’s advanced System-on-a-Chip, which gives smartphone users access to a faster and more reliable 5G connection.
For those of you who have already labeled Marvell Technology as a land flowing with milk and honey we have bad news. The company has lost around 41% in the last year. But, that means many analysts consider this a great time to invest. The average forecast for Marvell is +65% in the next 12 months.
Another 5G stock loved by market experts is Liberty Broadband, which is engaged in a broad range of communications businesses. Please keep in mind that it’s not a hugely popular stock for market analysis so there are fewer reviews, therefore we see it as a second choice to Marvell.
To put it mildly, the past year wasn’t great for Liberty Broadband — the stock has lost about 45%. If Liberty doesn’t have a place in your portfolio, that could be good news for you. The average forecast for Liberty Broadband stock is for around 60% growth in the next twelve months.
Well, we couldn’t help but mention three other companies, you’ve definitely heard of, that are connected with 5G technology and offer growth potential. May I introduce Alphabet, Vodafone, and Broadcom to you. Numbers say it all – average analyst coverage implies that Alphabet can expect growth of 31%, Vodafone may gain around 29%, and Broadcom may will see nearly 26%.
Quite a pot of gold, isn’t it? Not really. The enormous world crisis going on right now cannot be simply ignored. The consequences of Covid-19, the military confrontation between Russia and Ukraine, the energy crisis, and accelerating (despite all efforts) inflation do not fall under growth drivers category.
Therefore, general predictions about the future of the world and American market aren’t particularly bright. Wanna proof? Ok, take a look. Here is the S&P 500 index, which lists the 500 biggest American companies and how it has performed in the last twelve months.
Despite this frightening scene, many experts still think that the American market is overvalued and expect further declines.
However, there’s no way any of us can say for sure how things will unfold in the stock market, and you should remember happiness can be found even in the darkest times, if only one remembers to turn on the light (Harry Potter fans shed a few tears). Translated into market lingo, that means that even the market crashes, there’s always an opportunity somewhere. But, before making any decision, remember to do your own analysis. That’s rule #1 to help you be a successful investor.
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