With a peak speed 20 times faster than 4G -- some say even 100 times faster -- 5G will definitely transform the way we connect to the internet in the coming years. But right now, there is no wide coverage of the new network yet, so there's a real opportunity now to get in on the trend early and invest in companies that will make 5G connectivity happen. In this article, we named our top 10 picks of the best 5G stocks under $10 that will position your portfolio for long-term growth.
What Are 5G Stocks Under $10?
By 2025, it's estimated that about 1.7 billion people will be subscribed to the 5G network, which means that it could still be behind 3G and 4G in terms of global mobile connections. And this year, about 438 million 5G connections are expected, providing headway to mass coverage. This is the onset of the 5G era.
Now, it is beyond question how a bunch of companies will be well on their way to profit from the wider 5G rollout. However, their stock price may be beyond the average investor's budget. Therefore, 5G stocks under $10 provide investors with exposure at a relatively affordable level to companies that have the potential to outperform the broader market.
What are the trading hours for 5G stocks under $10?
5G stocks below $10 can be traded during market hours, and the exact timings vary by the exchange where the stock is listed. Some brokers can offer before and after market hours trading but know that there is low volatility during these periods.
Trading 5G Stocks Under $10 in 3 Steps
Open a Trading Account
To trade 5G stocks under $10, you're going to need a reliable and well-regulated broker to execute trades for you. And that broker should also help you make sound investment decisions. The ideal broker should offer cutting-edge tools, dedicated trading support, and insightful market research.
Choose 5G Stocks Under $10
When you have a broker that supplies you with the right kind of tools and research, you'll have the data necessary to successfully trade a 5G stock. So, in this step, make sure you utilize your chosen broker's resources to their full capacity in analyzing the 5G stock you'll trade or invest in.
Place Your Trade
The last step is to select the stock you deem will be a profitable trade for you. When your transaction is processed, and you now have funds exposed to the stock, you'll switch to an active role in managing your position. This means that your trade exit should conform to either your predefined risk or set profit target.
Where Can I Trade 5G Stocks Under $10?
So, as mentioned, you need a broker to help you open your trading account. However, there are also other ways for you to trade 5G stocks, like through a Dividend Reinvestment Plan (DRiP) or a Direct Stock Purchase Plan (DSPP).
But these options, particularly with DSPP, come with greater upfront costs and low liquidity. On the other hand, with DRiP, the stock choices are limited since not all companies offer this scheme.
The best option is still to avail of a broker's services. Because for only a small fee for each trade, you'd be able to purchase the 5G stocks you want and keep them for as long as you choose. This means that you can either actively trade 5G stocks or hold them until it meets your investment objective.
And what's even better is the industry-standard now is that brokerage commissions and account minimums are reduced to basically nothing, making stock trading affordable for everyone.
Which is the Best 5G Stock to Trade?
- ASE Technology Holding Co., Ltd.
- Communications Systems Inc
- Nokia Corp
- ADDvantage Technologies Group, Inc.
- Limelight Networks, Inc.
- Wireless Telecom Group, Inc.
- Wipro Limited
- VEON Ltd
- Borqs Technologies Inc.
- Globalstar Inc.
ASE Technology Holding Co., Ltd.
ASE Technology Holding Co., Ltd. stock price has been on an unceasing rally since September last year, pushing its stock price to a 102% gain and trades at $8.34 at present. This Taiwanese company offers assembly and testing services. It provides outsourced assembly, semiconductor testing, and semiconductor packaging, and other services.
And the 5G-rollout looks to benefit its semiconductor manufacturing through its "smart factory" powered by the 5G Wave network that the company introduced in December last year.
Communications Systems Inc.
Communications Systems Inc. provides infrastructure products for broadband and voice communications. It operates three business segments, Transition Networks, JDL Technologies, and Net2Edge, serving customers from North America, Europe, the Middle East, Africa, and other countries.
The company's stock has been in a 4-month rally, jumping 45% from its October dip, and trades right now at $5.94.
Before there was an iPhone, there was Nokia. The old cellphone maker that connected people in the 90s and early 2000s still sells phones, but it now aims to connect the world through 5G. This Finnish company has secured contracts to build 5G networks in Belgium and Taiwan in Q3. And at $4.19 a share, the stock price is well within the $2.34 - $5.14 price range of last year.
ADDvantage Technologies Group, Inc.
ADDvantage Technologies Group, Inc. operates in two business segments: Wireless Infrastructure Services and Telecommunications. The company builds and upgrades wireless networks and provides network communications equipment to the telecom industry.
Its investment in foundational elements through Fulton Technologies allows it to further 5G for its customers. ADDvantage currently trades at $3.37 with a market cap of $40.5 million.
Limelight Networks, Inc.
Limelight Networks, Inc. is a content delivery network (CDN) provider for digital media content and software, with a customer base that includes Amazon Prime Video, HBO Max, and plenty of others. Limelight also launched EdgeFunctions, its venture into edge computing, which is expected to benefit from 5G. The company has a market cap of $608 million and currently trades at $4.85 a share.
Wireless Telecom Group, Inc.
Wireless Telecom Group, Inc. is a manufacturer of electronic noise sources and electronic testing and measuring instruments. It also operates a business segment called Embed Solutions, which provides stack software for 4G and 5G mobile network applications.
Now, its stock is still a shadow of its former glory in the 90s, but it was a significant gainer last year, soaring 265% from March. Wireless Telecom Group is now valued at $54 million at $2.49 a share.
Wipro Limited is an Indian information technology, consulting, and business process service company. It helps its clients acclimate to the digital landscape by offering its various IT services, including 5G implementation.
Wipro is a large-cap stock with outstanding shares worth $37.46 billion. The stock is currently trading 13 cents short of its all-time high set last month at $6.72.
VEON Ltd. is a Dutch company that provides mobile and fixed-line telecommunications services. It already serves more than 200 million customers from different countries, including Russia, Pakistan, Algeria, Uzbekistan, Ukraine, Bangladesh, Kazakhstan, Kyrgyzstan, Armenia, and Georgia. VEON also launched a large-scale 5G trial on Kazakhstan two years ago.
As far as its stock goes, it's still near its lows at its present price of $1.81, but some analysts put as high as a $2.20 price target for this company.
Borqs Technologies Inc.
Borqs Technologies Inc. sells phones, tablets, automobile systems, home appliances, wearables, and other devices. It is known for developing the "OPhone," or Open Mobile System (OMS), for China Mobile.
The company recently signed a project agreement with the Board Committee of Huzhou South Taihu New Area for a 5G industrial park in China. Borqs Technologies moved higher in the past few months from its lows and now trades at $1.73.
Globalstar Inc. is a satellite communications company that provides mobile voice and data communications services. The company and its business partner Nokia recently entered into an agreement in January to deploy its mid-band spectrum resource or Band 53 at the Port of Seattle. This agreement was with software company Tideworks Technology, Inc.
The market's reaction has been positive for the company's stock for two-straight months as the price went from $0.33 a share to $2.40 as of writing.
Expert Tip on Investing In 5G Stocks
It is essential to be familiar with the risk in investing in some 5G companies, especially the up-and-coming ones looking to get a slice of the market share. After all, 5G is more in the technology scene than it is in communications. Therefore, something new and more innovative is always bound to come up that might uproot the industry's unproven firms. In fact, 5G hasn't fully rolled out, but people are already theorizing a potential 6G future. So, the best thing you can do to grapple with risk is to diversify between 5G companies. If you plan to have some exposure to market newcomers, you may also want to put some funds in proven companies in the 5G space like Verizon and Sprint to even out your risk in this industry.
Why Trade 5G Stocks Under $10?
5G is not just a big upgrade to connectivity, but it's also viewed as disruptive and transformational, possibly serving as a launchpad for even newer technologies that we haven't even heard of. Therefore, investing in 5G stocks under $10 is your way to board the 5G train for a cheaper ticket.
Still, reiterating what we touched on earlier, the risk component in unproven businesses is too high. While you have a chance to see your money multiply three-fold, you could also end up losing your entire investment if you're so bought in a company that turns out to be a bust.
Frequently Asked Questions
5G ETFs is a fund composed of a basket of 5G stocks, whereas 5G stocks under $10 are individual equities. The biggest difference between the two is that individual stocks will carry higher risk as opposed to investing in a diversified fund.
5G stocks under $10 can be profitable investments, but it depends on so many factors and one of which, of course, is a reliable underlying business.
ASE Technology Holding Co., Ltd. is the most profitable company on our top ten list. The company generated a $17 billion revenue in 2020 and converted about $984 million into net profit.
The safest to trade for beginners would be ASE Technology Holding Co., Ltd because of its strong fundamentals.
5G stocks under $10 can be an excellent opportunity to position a beginner's investment portfolio for potential growth in a 5G future.
No. But some brokers offer pre-and post-market hours trading.