Are These 5G Stocks On Your 2020 Watchlist?
Telecommunication stocks can refer to many different types of companies. This includes cell phones, radio, television, media, and more. Top telecommunications stocks like many other stocks were hit very hard by the economic crisis. This is due to the lack of physical sales for many companies. Another factor is companies staying in operation.
When the market fell, investors were unsure about the state of telecommunications stocks. Now, many telecommunications companies are starting to rise back up in the market. Some have made full recovery, while others are close to it. It will be interesting to see how telecommunications stocks advance in the future.
Which potential telecommunications stocks are the best to invest in? Well, the telecommunications companies reporting good news, and better financials tend to go up. Telecommunication is always growing with technology constantly advancing over time. So let’s look at two telecommunications stocks that are rising in the market and trying to recover.
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Top 5G Stocks To Buy [Or Avoid]: Nokia
The first telecommunications stock to watch is Nokia Corporation (NOK Stock Report). Nokia is a telecommunications company from Finland that focuses on consumer electronics and networking equipment. Nokia was founded in 1865 and is the largest worldwide company and brand from Finland. In 2019 it brought in around $26 billion in revenue. As of 2020, Nokia employs more than 98,000 people. According to the Fortune Global 500 Nokia is the 415th largest company.
Before the economic crash, NOK stock price was around $4 a share on average. Then, NOK stock fell to around $2.50 a share in March. Since this 37.5% decrease, NOK stock price has been on the rise. In fact, NOK stock has managed to make a full recovery. As of July 15th, NOK stock is at $4.31 a share on average. This places NOK stock price 72.4% higher than its low in March.
Nokia recently announced that it can update its 4G towers to 5G without having to revisit sites or do tower climbs. This will save lots of money and time for Nokia. Nokia plans to have 3.1 million 5G towers by the end of 2020. With 5G on the rise, this is great news for Nokia. It will be great to see how this affects NOK stock in the coming months.
Top 5G Stocks To Buy [Or Avoid]: Verizon Communications
The second telecommunications stock to watch is Verizon Communications Inc. (VZ Stock Report). Verizon Communications is a telecommunications corporation that operates Verizon Wireless. Verizon Wireless is the second-largest wireless telecommunications provider in the United States. Its 4G LTE network covers 98% of the US population. In the last 5 years, Verizon Communications acquired AOL and Yahoo. In 2019 alone, Verizon Communications brought in over $131 billion in revenue. It is also the second-largest telecommunications company by revenue.
VZ stock like many communications stocks was affected by the economic crisis. Verizon had to slow its 5G tower production. The demand for new cell phones is low due to the economic effects of the pandemic as well. Before all of these events, VZ stock was at around $59 a share on average. Then, VZ stock price fell as low as $49 a share on average. This drop-in share price for VZ stock isn’t as bad as some other telecommunications stocks though. VZ stock price has gone up 12% from its low. As of July 15th, 2020 VZ stock is at $55.19 a share on average.
If Verizon can increase sales and 5G tower production, VZ stock could potentially rise more. The same case for Nokia, if they can increase its production as well. That is why VZ stock and NOK stock are two potential telecommunications stocks to buy. Staying updated with reports from these two companies could help you figure out the right time to potentially invest.