The penny stock market is like the minor leagues in professional baseball. In this space, former high- and mid-priced stocks compete for the possibility of returning to a higher level. Also, it is where new stocks vie for a big break.
The emergence of 5G — 5th generation — communication technology has energized investor interest in 5G penny stocks. Any company with a connection to super-fast 5G communication technology has a chance of sharing in the growth. Are you interested? Here is a list of 5G penny stocks with great growth potential.
Highlighted 5G Stocks
- Nokia (NYSE: NOK)
- ASE Technology Holding Co (NYSE: ASX)
- BlackBerry (NYSE: BB)
- Cheetah Mobile (NYSE: CMCM)
- Wipro Limited (NYSE: WIT)
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Overview: 5G Penny Stocks
Investors once considered penny stocks to be any security trading under $1. The Securities Exchange Act of 1934 changed that. The Securities Exchange Commission used this law to establish the penny stock trading rules and set the penny stock price classification at $5 and under. You can trade these stocks over the counter (OTC) or through any of the major exchanges.
Penny stocks’ low prices allow easy acquisition. This helps investors control their risk while gaining exposure to possible exponential gains. In many cases, you can buy 5,000 shares of a penny stock for $200 — $0.04 per share. A $0.20 per share increase would give you a 500% profit or $1,200. If the company goes bankrupt, you only lose $200.
Installing 5G super-fast networks has the power to boost the fortunes of technology and telecom companies — big and small. Penny stocks provide investors a low-cost way to share in this growth.
Trading in the penny stock market, however, can be highly risky. Relying on luck and tips is a strategy for failure. 5G penny stock trading requires you to be as informed as you can.
Best Online Brokers for 5G Stock
Finding relevant information on certain 5G penny stocks can be challenging. By providing extensive research material and historical data, online brokers can help you improve your due diligence. Here’s a list of some of the best online brokers.
Features to Look For in 5G Stock
- Earnings per share: Many 5G penny stocks have poor earning-per-share numbers. However, this metric is a good way to access the strength of the 5G company. It earmarks the amount of money available to pay shareholders after discounting all expenses, taxes and deductions. The calculation for the earnings per share is the net income minus the preferred stock dividend divided by the outstanding stockholder shares.
- Transparency: When investigating a penny stock, get accurate information. Exchange-traded penny stock companies must meet minimum listing standards. However, over-the-counter (OTC) traded companies have no minimum requirements. Some of the companies haven’t built a track record yet. Others may have products in the development stages. Either way, your risk factor tends to be lower with transparent 5G penny stocks.
- Net revenue: Net income is a sound financial measure of success for a 5G stock. It is the amount of revenue remaining after you subtract all deductions, taxes and costs. Many times, it is the most solid metric you can find for many 5G stocks. Net income can give you a good indication of a penny stock’s past performance. But, it only hints at how a stock will do in the future. Use it with other factors.
5g Stocks to Watch Out for This Year
As the 5G rollout continues, these 5G stocks show promise of moving up the charts.
Nokia (NYSE: NOK)
Nokia offers software, services, network equipment and licensing opportunities to customers worldwide. This Finland-based company is a front runner in the development and deployment of 5G networks. It has 2 main business-to-business customers: communication service providers and enterprise companies.
Enterprise companies develop, sell and install business software. The communication service providers support over 6.4 billion subscriptions to Nokia’s radio network — the enterprise customers have launched over 1,300 industrial networks throughout the world.
With 93,000 employees worldwide, this company intends to use its global 5G acquisition strategy to become the leader in the industry. Part of this strategy is the addition of award-winning Bell Labs. This acquisition has an unrivaled history of technological breakthroughs including lasers, UNIX and transistors.
Nokia’s 2019 year-end net income was $1.85 billion — the earnings per share was $0.11.
ASE Technology Holding Co (NYSE: ASX)
ASE Technology Holding Co is a joint venture of Advanced Semiconductor Engineering and Siliconware Precision Industries. The company provides semiconductor manufacturing services in assembly and testing. Also, it does IC packaging and electronic manufacturing services. ASE aspires to offer advanced technical support to companies and organizations with 5G applications.
This Taiwan-based company has plants and offices in China, the U.S., Japan, Malaysia and Singapore. It has over 92,000 employees. ASE Technology’s year-end net revenue for 2019 was $16.8 million — up 4.1% from 2018. It posted an earnings per share of $3.96.
BlackBerry (NYSE: BB)
BlackBerry is a leading provider of end-to-end mobility solutions. This includes artificial intelligence (AI), cybersecurity and the Internet of Things. The Internet of Things defines the process of connecting any type of device to the internet — including laptops, alarms systems and mobile gadgets. Today, BlackBerry has secured 500 million endpoints. An endpoint is any device customers use to communicate with a network.
To meet growing consumer demand, BlackBerry has an extensive partnership program for enterprise companies. The partners have access to BlackBerry’s vast technological resources. The Canadian based 5G company operates in 30 countries. BlackBerry’s 2019 year-end net income was $93 million. It recorded $0.17 earnings per share.
Cheetah Mobile (NYSE: CMCM)
This Beijing, China, industrial internet firm concentrates on consumers seeking to upgrade their homes and public spaces for 5G and the artificial intelligence (AI) era. Using AI and robotic technology, Cheetah Mobile makes and sells AI empowerment systems and robot devices designed to improve human-machine interaction, analytics and data management.
Cheetah Mobile proprietary voice, vision and multimodal technologies form the basis for smart home appliances, smart public services and smart customer services. It develops and markets voice-based service bots capable of greeting customers, providing information, vending and data delivery.
Cheetah Mobile’s systems have over 3 million voice interactions per day. For the 4th quarter 2019, this 5G company took a net income loss of $125 million. However, Cheetah’s stock price remained steady in the $3.50 range. The company posted a $-0.09 earnings per share.
Wipro Limited (NYSE: WIT)
Wipro Limited is a global information technology company that offers consulting and business services. This company helps its clients adapt to the 5G era with the strength of robotics, cloud technology, cognitive computing and hyper-automation. With over 175,000 employees, this company services clients across 6 continents.
This penny stock company operates within 26 industries — including aerospace and defense, health care, consumer electronics, retail and consumer electronics. As a result, it has many revenue streams. Wipro’s headquarters are in Bengaluru, India. Its net income for 1st quarter 2020 was $1.29 billion — 8% higher than the year before. The company reported earnings per share of $0.22.
Biggest 5G Penny Stock Movers of the Day
Being on the lookout for a promising 5G stock on the movers of the day list is a good idea. It may be its first sign of potential.
Buy BB Stock – Trade for Free
Buy GPRO Stock – Trade for Free
Buy WIT Stock – Trade for Free
Buy NOK Stock – Trade for Free
Qualities of a 5G Penny Stocks Investor
The penny stock market can be treacherous for the unprepared and reckless. It takes an investor with a high-risk tolerance to trade these securities. Developing a good risk management strategy will serve you well. With the proper preparation, you can use 5G penny stocks to gain exposure to the growth potential of the 5G era.
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