Stocks to Buy To Profit From 5G Offer Strong Growth Potential

Bryan Perry

Stocks to buy to profit from the adoption of 5G services include semiconductor and telecommunications equipment companies, as well as an under-the-radar satellite manufacturer and services provider.

The term 5G stands for fifth-generation cellular network technology that is intended to offer vast improvements in download speeds and to facilitate expanded use of the internet of things (IoT), which encompass mobile phones, gaming devices and other electronics that need additional bandwidth. A study by the TMG consultancy for the GSMA, which represents more than 750 mobile operators worldwide and organizations in related industry sectors, estimated that 5G is expected to yield $2.2 trillion in gross domestic product (GDP) and $588 billion in tax revenue between 2020 and 2034.

Indeed, 5G is expected to deliver substantial network improvements that will feature enhanced connection speeds, mobility and capacity, along with reduced latency for downloads that will enable new applications for a variety of industries. In the United States, the Federal Communications Commission (FCC) Chairman Ajit Pai tweeted on Nov. 18 that he decided that the agency should hold a public auction of the 280 megahertz spectrum of the C-band that previously had been allocated to satellite operators to provide video and radio programs to the United States.

FCC Decision on C-Band Spectrum Spurs Shareholders to Flee Satellite Stocks

A C-Band Alliance, consisting of satellite, wireless and other telecommunications companies, had been seeking FCC permission to share the spectrum and for satellite operators to be paid by the others via private auction to accommodate their 5G spectrum needs. However, Pai’s plan bypassed that proposal and called for splitting the revenue from a public auction between the federal government and the satellite operators.

Fixed satellite services giant Intelsat (NYSE:I) plunged in price 40.1 percent on Nov. 18 and 24.2 percent on Nov. 19. Between Nov. 1 and Nov. 19, Intelsat shares dropped 75 percent, while the France-listed shares of rival satellite operator SES lost 35 percent, even though the S&P 500 Index climbed 2.8 percent during that time.

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Paul Dykewicz,, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce,Seeking Alpha, GuruFocus and other publications and websites. Paul is the editor of and, a writer for both websites and a columnist. He further is the editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. Follow Paul on Twitter @PaulDykewicz.

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