The transition to 5G has been in the works for a while now, leaving investors scrambling to figure out which firms will be at the forefront of the revolution. Now February is here, many companies have released their earnings reports from the last quarter (or will be soon). xIt’s the perfect time to try and spot which 5G stocks are heading in the right direction. T-Mobile (TMUS) stood out, earning $2.79 billion in total revenue for the quarter — a significant increase from the $1.96 billion revenue from the period ending in September 2021.
However, it’s not the only 5G stock worth watching. Here are three more that should be on the radar of every investor. T-Mobile’s performance is particularly impressive considering the company’s rocky road over the last year. In late January, its stock was priced at $101.62 — the lowest point since June 2020. Yet by early February, its value bounced up to $120.94.
What happened? Previously, T-Mobile had been plagued by concerns about the profitability of its 2020 merger with Sprint and whether competitors like AT&T and Verizon Communications would overtake it. However, the recent earnings report has played a part in allaying these fears. In addition to the total revenue results, its EBITDA (earnings before interest, taxes, depreciation, and amortization) for Q1 was $6.3 billion, which represented an increase of 9.6% compared to the previous quarter.
Apple (AAPL) might not be responsible for deploying 5G, but it’s still directly involved due to its role in introducing tailored 5G phones. There have been concerns that the performance improvements between iPhone model updates have become less significant, but access to 5G could change all of this and lead to an upgrade boom — meaning high profitability.
When it comes to the 5G rollout, it’s not just household names like T-Mobile and Apple that are involved. The companies providing the equipment and materials needed as part of the deployment stand to benefit just as much — and among them is the semiconductor company Analog Devices (ADI).
Axcelis Technologies (ACLS)’s market-cap of $2 billion means that it’s not a Fortune 500 company like the others on this list. However, its role in manufacturing materials for the semiconductor industry could mean that it will stand to benefit hugely from 5G.