Telecommunications’ long-awaited switch to 5G technology is well underway, prompting many investors to search for the best 5G stocks to leverage this trend.
While it will be a growth category, set your expectations accordingly – just like actual users of the technology should early on.
Washington Post technology columnist Geoffrey Fowler recently speed-tested 5G phones against old, clunky 4G phones. What it found was that the new phones weren’t much faster than the new ones. Worse still, in some locations, 5G was slower.
“RootMetrics, a network-analysis firm owned by IHS Markit, said that in the first half of the year, median AT&T 5G speeds were 46 Mbps, only slightly faster than the 4G LTE speed of 43 Mbps,” he writes. “At T-Mobile, speeds increased more as a percentage, but its median 5G speed of 25 Mbps still can’t even compete with its rivals’ 4G LTE speeds.
That’s not what you want to hear when you’re talking up a 5G revolution. Not in the slightest. But that reality is expected to change over the next few years as the technology progresses.
For investors looking to bet on some of the winning 5G stocks, that means you might not enjoy rip-roaring gains right out of the gate. But that’s OK – it’s a marathon, not a sprint, after all. Patient investors in the right picks, however, should be rewarded handsomely over time.
Here are seven of the best 5G stocks to buy. All of them should eventually benefit from the shift to 5G, not just in the U.S., but worldwide.