Strong Demand For Wireless Equipment Makers: 5 Top Picks

U.S. stock markets have remained highly volatile so far this year. Trade-related conflicts, yield curve inversion, geopolitical concerns, and inflationary fears are primary reasons behind the market instability. However, the wireless equipment industry maintained its bull run even under these foreboding circumstances, surprising many investors.

A growing U.S. economy speeds up the demand for real-time voice, data, and video manifold. The escalation in demand has encouraged wireless service providers to undertake large network extensions while upgrading plans. This, in turn, has provided a boost to the demand for wireless equipment makers. Consequently, it will be a prudent move to invest in wireless equipment makers with a favorable Zacks Rank.

Strong Wireless Infrastructure Market

With the rapid growth in video and other bandwidth-intensive applications, the wireless industry participants are making considerable investments in LTE, broadband, and fiber in order to provide additional capacity and ramp up the Internet and wireless networks. The LTE network has the highest penetration rate of 91% in the North American region. This, in turn, will help wireless equipment manufacturers.

The impending 5G boom is likely to propel the wireless industry to newer heights. The success of 5G technology hinges on substantial investments to upgrade infrastructure in the core fiber backhaul network to support anticipated growth in data services.

The advantage of 5G Wireless Network

The latency period of 5G data delivery will be in milliseconds. Further, 5G technology is designed to be more power efficient than any other standard wireless network available now. In fact, 5G-enabled mobile devices are likely to last a lot longer than their 3G or 4G counterparts.

The rising demand for technologically superior products has been a silver lining for the telecom space in an otherwise tough environment. In this respect, the superfast 5G mobile networks will be of utmost necessity in managing the exponential growth of internet-connected devices, popularly known as the Internet of Things (IoT).

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this ...

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