Over the past few years, communications companies have been rolling out 5G technology to improve the quality of their networks. Buying shares of 5G companies could result in huge returns later on as the industry continues to grow.
Because this technology is new, many of the top 5G stocks right now are penny stocks.
This means investors can buy into these companies without breaking the bank.
We’ve rounded up some of the top 5G penny stocks to watch right now.
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Best 5G Penny Stocks
Nokia (NYSE: NOK)
Nokia is a Finnish telecommunications company that was one of the world’s first providers of cell phones and the networks that power them.
This company has been in business since 1865, although they were originally a pulp mill in western Finland. They didn’t start making electronics until the late 1960s.
Nokia was initially one of the most successful mobile phone brands on the market, but over time, they were overshadowed by other manufacturers who invested more heavily in smart technology.
Their stock price dropped off as a result of these changing trends.
However, Nokia remained invested in the wireless infrastructure that was powering smartphones, including the 5G network.
5G service has been very lucrative for Nokia, and they had a very strong first quarter earnings report as a result.
On top of that, the company recently announced that they had adjusted their financial guidance for next quarter, indicating that they will likely be exceeding earnings expectations yet again.
Nokia stock has been steadily increasing in price over the last few months, but this latest announcement sent the stock rising even higher.
Borqs Technologies Inc. (NASDAQ: BRQS)
Borqs Technologies is a US-based company that develops IoT technologies and products. They have partnered with major technology companies like Android and Qualcomm on projects in the past.
In particular, Borqs has worked on smartwatches and other wearable devices, but their technology could be applied to many different types of devices.
The company has a global presence, with research centers in China, India, and Korea as well as in the United States.
Over the last month, Borqs has received a lot of attention from retail investors on Reddit and Twitter.
This buzz from social media resulted in a price spike at the end of June and high trading volume. However, Borqs’ share price dropped back down again over the next week.
While the social media hype has died down, Borqs Technologies stock has maintained a high average trading volume, which is a positive sign for any penny stock.
If Borqs can maintain their partnerships with major communications companies moving forward, they could experience another breakthrough in the future.
UTStarcom Holdings Corp. (NASDAQ: UTSI)
UTStarcom is a Chinese company that makes a variety of telecommunications products. Although UTStarcom does not power 5G networks directly, their products provide direct access to 5G connectivity.
The company is based in Beijing and serves the booming Chinese market, but they also have a global presence, with clients throughout Asia, Latin America, Africa, and the Middle East.
Like many other 5G penny stocks, UTStarcom’s pricing has been up and down this year.
Their share price has spiked multiple times as a result of hype around 5G technology, but hasn’t been able to maintain this increase in performance.
However, this stock could still be a good option for investors who are willing to take a risk.
Despite their status as a penny stock, UTStarcom’s products have a wide range of potential applications, and they have a global customer base.
Both of these things bode well for the future of the company.
Inseego Corp. (NASDAQ: INSG)
Inseego makes products that provide access to the 5G network and expand its capabilities.
Some of the products they make include mobile hotspots, routers, USB modems, and much more. They make products for enterprises as well as the general consumer.
Inseego’s products are very versatile and can be used in many different industries and settings. They extend the 5G network and provide improved speeds.
Inseego’s share price dropped back in March as a result of concerns around the transition from 4G to 5G.
Inseego had previously relied on 4G products for a large source of their revenue. They recently launched 5G products, but the transition between the two will take time.
However, their most recent earnings report beat consensus estimates for both revenue and earnings per share numbers.
Once demand for Inseego’s 5G products becomes more stable, we can expect to see more growth from this stock.
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Wipro Limited (NYSE: WIT)
Wipro Limited is another company that provides IT services for the 5G era.
As network providers slowly extend 5G coverage around the globe, businesses will need to adapt their technology. Wipro uses modern technology like cloud computing and automated systems to make this process easier.
Wipro is based in India and is currently one of the largest employers in the country.
The Indian technology market is growing very quickly, and Wipro has positioned itself as a leader here.
However, they also have operations in the United States and in other countries around the world.
While Wipro doesn’t directly provide 5G coverage, their services will be essential as we transition to this new era.
Wipro has seen very steady, consistent growth this year, which is very exciting for investors.
They also currently have a dividend yield of 0.17%. While this isn’t huge, it’s still an added bonus for income investors.
5G Network Penny Stocks
Globalstar Inc. (NYSE: GSAT)
Globalstar Inc. is a satellite communications company that runs their own low-orbit satellite constellation.
This satellite constellation powers satellite phones and other communication devices that use this network.
There has been a lot of hype around Globalstar over the past year as many people have realized just how effective their network could be for powering 5G devices.
In particular, many retail investors on platforms like Reddit were excited about this stock.
After trading for less than $0.50 per share for most of 2020, Globalstar stock spiked at the beginning of 2021. It reached a high point in February when the stock market was extremely volatile, and has been up and down since then.
Investors that buy this stock at the right time could see huge short-term returns because of this stock’s relative volatility, although this strategy can be risky.
Many people think this stock could also be a strong long-term buy as well.
While Globalstar is known mostly for their satellite communications network, they also develop commercial IoT technology as well.
This technology could be used for emergency response or even to monitor alternative energy sources, just to name a few potential applications.
There are so many different ways this company could expand its operations in the future, which could increase their revenue and push their share price up.
Veon Ltd. (NASDAQ: VEON)
Veon is a Dutch telecommunications company that is currently one of the top 10 mobile providers in the world.
Right now, Veon provides service in Europe, Asia, and Africa, and has a particularly large customer base in Russia.
They currently provide 4G service throughout much of their network, but could eventually expand to 5G in the future.
This stock has been performing very well this year after struggling in 2020. In fact, their share price spiked in June as analysts realized that it could be undervalued.
Veon could potentially provide 5G service to places around the world that otherwise wouldn’t have access to it, which could give them a strong foothold in a competitive market.
Veon also recently released a digital payment card option, which gives customers around the world easy ways to pay when they shop.
Those who invest in this stock are betting on Veon’s eventual adoption of 5G technology. There’s some risk involved here, as we aren’t yet sure when the company will start providing 5G service.
Communications Systems Inc. (NASDAQ: JCS)
Communications Systems provides the physical infrastructure necessary to run broadband systems. They work with clients around the world to develop efficient internal networks.
This company currently has clients located in dozens of countries around the world. Digital connectivity has become so important over the past few years, making this company’s products and services increasingly essential.
This stock has been steadily increasing in price over the past few months.
They are currently trading at a year-long high point. Prospective investors may want to wait for the share price to dip slightly before making a purchase.
This company is set to capitalize on the growth of the global 5G network.
Their performance on the market this year has been excellent so far – only time will tell if they can maintain this upward trajectory.
Ribbon Communications (NASDAQ: RBBN)
Ribbon Communications is a Texas-based telecom company that provides support for mobile networks, cable providers, and more.
In particular, Ribbon Communications helps providers modernize their networks to provide the fastest and most efficient service.
Their solutions create secure network connections that work with a wide range of IoT devices and can be used in many different industries.
As mobile providers around the world switch from 4G to 5G, Ribbon Communications can provide the necessary tools and services to help with modernization.
Ribbon Communications also gives large enterprise clients a way to build their own internal networks that are efficient and secure.
This stock hit a five-year high point in February 2021, although it has dropped off slightly since then. However, their price-to-earnings ratio is still relatively low, meaning the stock is relatively inexpensive given the company’s most recent earnings report.
This means now could be a good time to add this 5G penny stock to your portfolio.
Should You Buy 5G Penny Stocks?
5G technology has completely changed the communications industry. This fifth-generation mobile network provides much faster connectivity than previous generations.
In today’s society, we rely heavily on smartphones, Internet of Things, and other network-enabled pieces of technology.
As a result, 5G connectivity is in high demand around the world.
The 5G penny stocks listed in this article are in a great position to benefit from this expansion around the world.
Since these stocks are still trading for less than $10 per share, investors can easily add them to their portfolio without breaking the bank.
It’s important to be cautious when trading penny stocks. Although you can purchase them for a very affordable price, they do come with some added risks.
Penny stocks tend to have a fairly low trading volume, which means they are more volatile and susceptible to sudden price jumps.
When purchasing penny stocks, you’ll want to take a look at their trading volume as well as their most recent financial data. Looking at these pieces of information ahead of time can help you avoid this volatility.
Luckily, many of the stocks in this article have relatively high volume for a penny stock due to the hype around 5G and the communications industry in general.
If you’re on a budget but still want to invest in 5G, these penny stocks are a very affordable way to do so.
5G Penny Stocks: Final Thoughts
For the companies listed in this article, 5G technology could serve as a huge source of revenue over the next few years.
If 5G technology does prove to be this lucrative, these stocks could easily break out of the $10 range.
While there is some risk involved, now could be the time to buy if you want to take advantage of this booming industry.
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