As we move into 2022, analysts expect the 5G boom to kick into a higher gear. With autonomous vehicles and the virtual reality markets gaining traction, 5G technology, which is at least 10 times faster than 4G, could become a hot commodity in the market.
Therefore, some 5G stocks spanning from network and infrastructure providers to chipmakers and software firms, could realise significant gains in stock prices.
Nokia Corp (LON:0HAF) recently won a major Qatari contract allowing it to supply 5G and other technologies to the middle-eastern country. The company launched its next-generation AirScale 5G portfolio powered by ReefShark technology in June, positioning well to capitalise on 5G adoption.
Nokia shares trade at a reasonable forward P/E ratio of 15.35 whilst offering an exciting annual EPS growth rate of nearly 18% over the next five years. Therefore, with the highly expected 5G boom on the horizon, it could be time to buy Nokia shares.
Technically, Nokia shares appear to be trading within an ascending channel formation in the intraday chart. As a result, the stock has rallied closer to the overbought conditions of the 14-day RSI.
Therefore, given the exciting prospects, investors could target extended gains deep into overbought conditions at about $6.76, while $5.89 is a crucial support level.
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software to chipmakers. The company could benefit significantly from the rapid growth of electric vehicles and the continued penetration of smart devices.
The stock trades at a reasonable forward P/E of 18.71 whilst offering an EPS growth of about 14.74% per year over the next five years.
Technically, the stock seems to have recently spiked to trade in the overbought conditions of the 14-day RSI.
However, with shares pulling back to create more room below the trendline resistance, investors could target profits at $688.85 and $714.78, while $642.75 and $615.86 are support zones.
Verizon Communications Inc. (NYSE:VZ) is the largest telecommunications company in the US. The company has invested heavily in 5G technology and recently announced achieving its target for the deployment of 5G cells, thus rapidly expanding its C-band airwaves deployment.
Verizon shares trade at attractive trailing 12-month and forward P/E ratios of 9.90 and 9.76, respectively, making the stock an exciting option for value investors.
Technically, Verizon shares seem to have recently bounced off key support to trade in an ascending channel formation.
However, with the stock yet to reach overbought conditions, investors could target extended gains at about $53.69, or higher at $54.84, while $51.36 and $50.17, are crucial support zones.
The post Best 5G stocks to buy in 2022 appeared first on Invezz.