5G Technology is expected to revolutionize communications worldwide through low latency connectivity and faster data transmission speeds than any other technologies. The rise in the number of IoT devices, widespread adoption of edge computing, and a surge in demand for content streaming services and industrial automation are driving the growth of the 5G standard globally…
Indeed, the global 5G technology market is projected to reach $667.90 billion by 2026, registering a CAGR of 122.3% beginning this year. Companies are now racing to integrate 5G services with satellite communications and to increase their strategic partnerships to exploit the new standard.
With the scramble in connection with this wireless transition now underway, we think 5G companies such as Telefonaktiebolaget LM Ericsson (ERIC – Get Rating) and Skyworks Solutions, Inc. (SWKS – Get Rating) are well-positioned to exploit burgeoning opportunities. With deep customer engagements, underpinned by decades of technology investments and scale, these stocks are uniquely positioned to lead the market.
Telefonaktiebolaget LM Ericsson (ERIC – Get Rating)
ERIC provides information and communications technology solutions through the following segments: Networks, Digital Services, Managed Services, and Emerging Business. The company’s offerings include cloud services, software, and infrastructure for broadband and telecommunications.
On January 26, ERIC launched a 5G network slicing solution for radio access networks (RAN) that will enable communications service providers to deliver customized 5G services to consumers and enterprises. This newly launched scalable and flexible architecture is expected to spur ERIC’s 5G business growth.
ERIC’s net sales have increased 4.8% year-over-year to SEK69.59 billion in the fourth quarter ended December 31, 2020. Its operating income has increased 79.7% from the year-ago value to SEK11 billion, while its EPS has improved 68.7% over the three-month period to $2.26.
Analyst expects ERIC’s revenues to rise 26.9% year-over-year in the first quarter ending March 31, 2021. A consensus EPS estimate for the current quarter represents a…
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