There exists a cluster of 5G stocks that have been concealed from the prying eyes of investors, waiting to surge in value, presenting a lucrative opportunity this year.
These stocks belong to companies involved in developing and deploying 5G technology, as well as those poised to reap significant benefits from its widespread adoption. This incorporates major telecom operators, equipment manufacturers, and smaller firms specializing in pivotal components like semiconductors, antennas, and network solutions.
As the broader indices, such as the S&P 500 and the Nasdaq, continue their ascent, the valuations of these companies are anticipated to follow, cementing them as robust investments.
Here are three largely unnoticed 5G stocks with the potential to provide substantial gains for investors.
Jabil (JBL)
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Jabil (NYSE:JBL) is a company offering manufacturing services in various segments, including electronics manufacturing services (EMS) and diversified manufacturing services.
The company’s latest forecast for Q1 fiscal 2024 revenue is marginally lower than the previous range. Despite this, the company anticipates delivering more than $1 billion in adjusted free cash flow for the year and continuing its share repurchase program.
Analysts are bullish on JBL’s prospects, forecasting an 18.25% increase in its EPS and a 4.21% increase in its top-line revenue, with its stock price having risen 66.50% in the past year.
Ericsson (ERIC)
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Ericsson (NASDAQ:ERIC) is a global leader in telecommunications services and equipment, supplying vital infrastructure to the 5G industry.
Despite facing certain headwinds, particularly with a 23% year-over-year decline in network sales in Q4 2023, Ericsson is executing a strategy to curtail costs and expand its enterprise and mobile segments.
Having reported a modest operating margin of 9.87%, it stands with negative accounting profits, but its price-to-sales ratio of 0.71 indicates a significant undervaluation with respect to its efforts to improve margins.
Corning (GLW)
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Corning’s (NYSE:GLW) optical communications segment, which manufactures fiber optic cables and related equipment, plays a pivotal role in the deployment of 5G networks.
It is an opportune moment to invest in GLW stock, as the company foresees core sales for the first quarter of 2024 at approximately $3.1 billion, with strong earnings growth expected at around 17% year-over-year in 2024. Trading at just 2.17 times sales, GLW appears to be undervalued, receiving a “Buy” rating from Wall Street.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
