The 5G industry held the headlines in the last years with its huge growth perspective. Companies involved in the sector have benefited from increased media exposure as this technology is expected to revolutionise numerous business activities. 5G refers to a new generation of mobile activity that will connect everything and everyone, including people, objects, and machines.
If you want to know more about the best 5G penny shares to buy this year, the following sections contain a list of ten companies that might be suitable for your portfolio. It also includes a step-by-step guide that helps beginners purchase their first shares.
Where Can I Buy 5G Penny Shares?
5G penny shares are available to trade at many brokerage houses. To access these, you should sign up with a well-regulated broker. You may also consider this list containing several hand-picked stockbrokers that offer you access to 5G penny shares.
Overview of the 5G Penny Companies
The arrival of the new technology is expected to unleash a major revolution in the Internet of Things (IoT) space. The 5G services market was impacted by the COVID-19 pandemic as many projects around the world were 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 alike. Continuous innovation is key in this dynamic sector, and the one that innovates faster is the winner. Our chosen 5G penny stocks are currently involved in this dynamic industry while having a low share price that makes them attractive to small investors or active traders.
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, they are available from 9:30 A.M. to 4:00 P.M. (ET). If a company you want to invest in is traded on another stock exchange, such as the London Stock Exchange, it is available from 8:00 A.M. to 4:30 P.M. in the local timezone.
How to Trade And Invest in 5G Penny Shares?
Open a Trading Account
The first step is to open a trading account. Choose an online broker and register with them by providing your personal information. Additionally, you will be required to provide a form of personal identification, such as your driver’s license or ID.
Once your account is open, you can have a closer look at our listed 5G penny shares to identify which ones align with your trading objectives. Alternatively, you can choose stocks from your broker’s offering.
Place Your Trade
Once you narrowed down your options, you should fund your account using one of the payment methods available. Next, place your trade by selecting the chosen stock, adding the number of shares you want to purchase, then click on “buy”.
Top 10 5G Penny Shares to Buy
The ten companies listed below are the best 5G penny shares to buy based both on their growth potential and financial strength. We’ve also selected the first five stocks to provide a better insight into why they might be an excellent addition to your trading portfolio.
- Communications Systems
- ASE Technology
Based in Espoo, Finland, Nokia is a global corporation engaged in the technology industry. It is involved in various 5G strategic partnerships across the globe, such as the one with Zain KSA regarding the rollout of 60,000 FastMile 5G Gateway 3.1 in Saudi Arabia, and has recently signed a contract with Deutsche Telekom to modernise its optical transport network. Nokia comes with the low price of a typical penny stock, but with the security of an established business in this fast-growing industry, unlike other penny stocks that might be new on the market.
Nokia’s share price decreased by 29% in the last five years, but investors might be able to earn significant returns as the company has already doubled its price compared to the 2020 lows.
Founded in 2003 and based in the United States, Globalstar is a mobile satellite services provider that operates internationally, as its name suggests. It has a base of approximately 800,000 subscribers, and its main product is a duplex two-way voice and data product. It also provides mobile voice and satellite communication services.
GlobalStar is one of the cheapest global companies in the world, as it traded below $1 for a long time. Despite the steady downtrend in the last five years, it increased by 250% in the first half of 2021.
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 to Vislink Technologies. The company currently collects, delivers, and distributes crisp live video and data.
The company is under pressure due to a $50 million stock offering, while its share price increased by 177% in the first half of 2021.
A Chinese company, UTStarcom develops technology for bandwidth from mobile, streaming, and other applications in Japan, Taiwan, and other countries. It serves cable service firms and telecommunications services providers around the world. UTStarcom has recently announced its collaboration with a mobile operator in Europe.
Although it’s been in a downtrend for a few years, its share price has recently climbed above $2, increasing by more than 50% in 2021.
5. Communications Systems
Involved in connectivity infrastructure products and services for broadband networks, this American company sells them via an extensive network of distributors, resellers, and integrators. The business activates in the B2B industry and provides network solutions to eliminate downtime, improve data transfer and security, and more.
Although the company’s share price was down 24% in the last five years, traders might find this an excellent opportunity to generate returns as it’s already increased more than 18% this year.
Expert Tip on Investing in 5G Penny Shares“ Keep in mind that major contracts signed with telecommunication networks typically lead to aggressive market movements. Therefore, ensure the proper management of your risk exposure to this market due to its potential volatility. Generally, you should not invest more than 2% of your capital in only one type of stocks, so it’s best to diversify your portfolio by adding other financial assets. ”- Mircea Vasiu
Why Invest in 5G Penny Shares?
5G penny shares present a double incentive to own them. Firstly, the price is accessible to all categories of investors. Then, the expected growth of 5G stocks and the popularity of the industry are compelling enough to attract major interest from all categories of investors and traders. This is due to the advancements of the Internet once 5G services become widely available, connecting devices, machinery, and objects.
Frequently Asked Questions
The best 5G penny stock depends on your trading objectives and portfolio. You should keep in mind that penny stocks, typically priced below $5 per share, come with high daily fluctuations, so investors should make these investment decisions after thorough research.
As big data takes over all industries and businesses, 5G services will allow users to collect and process all of this information. As a result, investments in the 5G industry are essentially supporting the future of the IoT, making for an excellent choice for tech-focused investors.
Wipro has a solid balance sheet with $1.9 billion in cash and cash equivalents, while its receivables and payables are fairly balanced.
Risk-taking individuals who believe in the need for faster infrastructure and the power of cloud services usually invest in this industry. Also, investors who want to diversify their portfolios by purchasing fast-growing stocks may find this industry suitable for their needs.
Globalstar or Nokia might be great penny stocks for beginners due to the low price. However, make sure you do your research and analysis before choosing a penny stock. There are numerous risks involved when trading such volatile assets.
The 5G services market is projected to grow at a compounded annual growth rate of 29% in the next five years. This makes it one of the fastest-growing industries nowadays, especially as it will improve all internet-related operations across all other industries.