The 5G industry held the headlines in the last years with its huge growth perspective and impressive CAGR rates. Companies involved in the sector have benefited from increased media exposure, and this list provides the best 5G penny stocks to consider when investing.
Overview of the 5G Penny Companies
5G takes it from where 4G left, and the arrival of the new technology is expected to unleash a major revolution in the Internet of Things (IoT) space. Currently, the 5G services market is impacted by the COVID-19 pandemic as many projects around the world are postponed. However, the future potential growth of the industry attracted many investments from both the private and the public sectors. The 5G industry is a competitive landscape, with rivalry among big players that spills over to the penny stock companies too. Continuous innovation is the name of the game, and the one that innovates faster is the winner.
What Are the Trading Hours for 5G Penny Shares?
Most 5G penny stocks presented in this article are listed on the U.S. equity market. As such, make sure that you are aware of the U.S. market hours and, if the broker offers futures on these names, trading is continuous.
Where Can I Buy 5G Penny Shares?
5G penny shares are available to trade at many brokerage houses for the simple reason that their price is acceptable to the regular retail investors. Naturally, a company with a share price of $4 is more attractive, at least from a psychological point of view, than, say, a company with a share price of $400.
Brokers earn a fee in the form of the spread or difference between the bid and ask prices – the prices used for selling, respectively buying shares. However, it is only normal because they run a business and when the business is also regulated, additional costs intervene. The brokers presented in the comparison table displayed next to this section have stable spreads and normal commissioning.
We've shortlisted the best 5G penny stocks to buy in 2021 and you can start trading them in our recommended brokers by clicking on the buttons of the following table.
Top 10 5G Penny Shares to Buy
The ten companies listed below are the best 5G shares to buy in 2021 based both on their growth potential and on financial strength.
- Communications Systems
- ASE Technology
Based in Espoo, Finland, Nokia is a global corporation engaged in technology businesses. It is involved in various 5G strategic partnerships across the globe, such as the one with Zain KSA to rollout 60k FastMile 5G Gateway 3.1 with eSIM in Saudi Arabia.
- Market capitalization: $24.22 billion
- It is cheap and active in a fast-growing industry
- Listed on the New York Stock Exchange and part of various ETFs that track the 5G industry
- Down 29% in the last five years
- Up over 4% for the year and doubled in price since the 2020 lows
- Recently gained a contract with Deutsche Telekom to modernize its optical transport network
Founded in 2003 and based in the United States, Globalstar is a mobile satellite services provider that operates globally, as its name suggests. It had a base of about 800k subscribers at the end of 2019 and its main product is a duplex two-way voice and data product, including mobile voice and satellite communication services.
- Market capitalization: $1.95 billion
- It is one of the cheapest global companies in the world, as it traded below $1 for a long time
- Listed on the Nasdaq Global Select Market under the symbol GSAT
- In a steady downtrend in the last five years, but it is currently up over 250% in 2021 alone
- Recently included in Nokia deal for Port of Seattle
Based in Florida, United States, Vislink provides wireless communications solutions on almost all continents. Formerly known as xG Technology, it changed its name in February 2019 into Vislink Technologies.
- Market capitalization: $100.49 million
- Under pressure recently due to a $50 million stock offering
- Listed on Nasdaq under the ticker VISL
- Up 177% this year alone
A Chinese company, UTStarcom develops technology for bandwidth from mobile, streaming, and other applications in Japan, Taiwan, but also internationally. It serves cable service providers around the world and telecommunications services providers as well.
- Market capitalization: $74.73 million
- Its share price recently climbed above $2
- Listed on Nasdaq under the ticker UTSI
- In a downtrend in the last five years, but up over 50% this year
- It recently announced that it expands collaboration with a mobile operator in Europe
Involved in connectivity infrastructure products and services for broadband networks, this American company sells them via a large network of distributors, resellers, and integrators.
- Market capitalization: $50.61 million
- Missed on revenue on the last earnings and thus looks cheaper at current levels
- Listed on Nasdaq under the ticker JCS
- Down 24% in the last five years
- Up over 18% year-to-date
From San Diego, California, the United States, Inseego is a corporation involved in areas such as cloud solutions for large enterprises, Internet of Things, or mobile solutions. Among its numerous products, it also manufactures and sells 5G fixed wireless routers and gateways.
- Market capitalization: $1.96 billion
- In a steady bullish trend since 2017, barely correcting during the 2020 stock market selloff
- Up 1860% since 2016
- Already up 27% this year alone
- Last December it announced that it expands its relationship with Vodafone Qatar
An Indian company, Wipro is an IT company that operates worldwide and offers third-party IT products, networking solutions, and end-user computing solutions.
- Market capitalization: $31.91 billion
- It had beaten EPS by $0.01 recently and delivered revenues in-line with expectations
- Signed a multi-year contract with Verifone
- Listed on the New York Stock Exchange under the ticker WIT
- Recently declared a dividend of $0.0141/common share
- Up 46% in the last five years
- Up over 13% in the current year alone
A Taiwanese company, ASE was founded in 1984 and provides electronic manufacturing services internationally. It also offers IS wire bonding packages, among other products.
- Market capitalization: $16.12 billion
- Up 33% year-to-date
- It had beaten EPS by $0.06 recently
- Listed on the New York Stock Exchange under the ticker ASX
- Offers a dividend yield of 1.75%
From the Netherlands, Veon is a company that provides fixed-line telecommunications services. It serves over two-hundred million customers and is active in telecommunications services for almost three decades.
- Market capitalization: $2.94 billion
- It recently partnered with Mastercard to boost digital financial services globally
- Listed on Nasdaq under the ticker VEON
- Down over 50% in the last five years
- Up 11% year-to-date
Another Chinese company, Borqs offers software solutions for Android-based devices across various markets. It also sells hardware products.
- Market capitalization: $60.26 million
- Signed an agreement for a 5G industrial park last December
- Listed on Nasdaq under the ticker BRQS
- In a steady downtrend in the last five years
- Up over 57% this year alone
Expert Tip On Investing in 5G Penny Shares
Try to follow the news between earnings. Major contracts signed with big telecommunication networks typically lead to aggressive market movements. Ensure you also properly manage your risk exposure to this market due to its potential volatility.
Why Invest in 5G Penny Shares?
5G penny shares present a double incentive to own them. On the one hand, the price is accessible to all categories of retail traders. On the other hand, the 5G industry CAGR for the next five years is compelling enough to attract major interest from all categories of investors and traders.
Frequently Asked Questions
Inseego Corporation. While not a 5G “penny stock” anymore, Inseego has a strong balance sheet and potential for further growth as T-Mobile made MiFi its first 5G hotspot.
This is a fast-growing industry as big data becomes bigger by the day and the 5G offers the perfect infrastructure to cope with it.
That would be Wipro. It has a solid balance sheet with $1.9 billion in cash and cash equivalents, while the receivables and payables are fairly balanced.
Investors that believe in the need for faster infrastructure and the power of cloud services.
That would be Globalstar – for a little over $1 investors get exposure to a fast-growing company in a fast-growing industry
The 5G services market is projected to grow at a CAGR (Compounded Annual Growth Rate) or 155.5% in the next five years.