Last Updated on February 22, 2021 by Henry John
5G Technology is identified as a key growth driver for 2021 and in the next five (5) years. And according to a report by Allied Market Research, “the global 5g technology market is anticipated to be at $5.53 billion in 2020 and is projected to reach $667.90 billion by 2026, registering a CAGR of 122.3% from 2021 to 2026”.
You can capitalize on this projected growth by investing in 5G stocks. And there are more promising opportunities for massive growth by investing in 5G penny stocks.
2021 is the year for 5G to truly start taking off and stocks with a great degree of exposure to 5G are most likely to take off in the consumer tech sector this year.
The first beneficiaries of the 5G wave are most likely 5G infrastructure stocks and at the other end are companies that will use 5G to massively improve their offerings technologically.
Update: Since publishing this article back in March 2020, most of the stocks listed have gone ahead to produce at least a 50% return, the article is continuously being kept up to date. Beyond penny stocks plays, check out my three best 5g stocks for 2021. When considering one of the stocks below, ensure you enter at a price you consider ‘low’, because cheap stocks, like listed below, are spiking crazily as a result of irrational speculation by a lot of traders lately.
If you are interested in investing in 5G Technology Companies, here are cheap 5G penny stocks under $10 and $5 to consider:
1. Nokia Corporation
Nokia (NYSE: NOK) is a major player in the global 5G infrastructure space, and it’s stock currently trades under $5.
The company engages in the provision of network infrastructure, technology, and software services. It has secured 145 commercial 5G deals and its 5G Infrastructure technology is currently being deployed live by 55 Network Operators worldwide.
Nokia is expected to benefit from the trade tension between the US and China, as many countries have banned the use of network equipment from Huawei, a Chinese Telecommunication powerhouse and the leader in the 5G infrastructure market.
However, the company is yet to realize this potential, failing so far to serious capitalize on the non-participation of Huawei in the 5g infrastructure market and has even lost 5G contract bids to the likes of Samsung.
Nonetheless, its recent quarterly report offers long-term promise. Having recently won a five year deal to supply network equipment to T-Mobile, a major US Network Operator.
Sentiment around the NOK stock is not favourable at the moment, and this is largely because of the CEO’s uninspiring 2021 guidance. “We expect 2021 to be challenging, a year of transition, with meaningful headwinds due to market share loss and price erosion in North America,” said Pekka Lundmark, Nokia’s CEO.
However, the CEO also noted that the company will be forced to sacrifice short term margins in 2021 to make more 5G Research and Development investments while maintaining market share. And this will help the company long-term, as they could potentially have superior 5g network infrastructure tech.
At less than $5, the company is a cheap long-term 5G play that could pay off massively.
2. ASE Technology Holding Co., Ltd.
ASE Technology Holding Co., Ltd. (NYSE: ASX) is one of the companies that are set to benefit from the global shortage of chips and 5G in 2021, and it currently trades under $10. As expeceted, the shortage of chips is going to increase demand for chip makers products, especially in the US and EU.
The company provides a range of semiconductors packaging and testing, and electronic manufacturing services in the United States, Taiwan, Asia, Europe, and internationally.
Moreover, the company’s wide range of semiconductor packages are used in 5G Network towers and 5G electronic devices. And as such it is one of the companies expected to benefit from the 5G boom.
Its P/E ratio is under 30 and it has a stock price that’s under 10, all of which makes it a relatively cheap 5G semiconductor penny stock.
3. ADDvantage Technologies Group Inc.
With many network operators upgrading their 4G technology to 5G tech, ADDvantage Technologies Group (NASDAQ: AEY) is one of the companies expected to see significant revenue and potentially, earnings growth.
The company engages in the installation and upgrade of technology on communication towers and small cell sites for wireless carriers, national integrators, tower owners and major equipment manufacturers.
It also engages in the construction of new small cells for 5G, and offers telecommunication networking equipment.
AEY is a micro-cap stock with a market cap of around $40M, the stock is currently up over 18% YTD, and reporting an earnings growth rate of 210.8% over the past 12 months before taxes and interest.
4. Communications Systems Inc.
Communications Systems, Inc. (NASDAQ: JCS) has been in the communication (connectivity) business since 1969, and although it’s a figment of its former self, it is still in the game. The company takes a niche approach today, primarily focusing on the manufacturing and distribution of connectivity infrastructure products and services for voice, data, and video connections.
JCS is a micro-cap stock that has a market cap of around $50 over the past few months. It pays a relatively ‘insignificant’ dividend yield of 1.29% annually, however, its stock price can rise by as much as 30% in 2021, and this makes it one of the best 5G penny stocks in 2021.
5G is expected to radically transform the development and adoption of Internet of Things (IoT), and one doesn’t need a soothsayer to know that because of 5G technology there will be much more IoT devices in demand.
The demand for IoT devices will in turn increase demand for IoT connectivity solutions and JCS should be able and is expected to capitalize on the 5G boom to sell and offer more connectivity products and services to its wide range of customers.
5. Wireless Telecom Group, Inc.
Wireless Telecom Group, Inc. (NYSE: WTT) engages in the design and manufacture of radio frequency and microwave devices used in wireless communication networks. The company has a stock price that is currently under $5, and is a player in the 5G mobile network space with specialized expertise in the development of specialized 5G radio access network solutions.
When it comes to the broader 5G market that is expected to be worth around $46.61 billion in 2021, Wireless Telecom is a niche player that provides its 5G hardware and software solutions for industrial private network deployments, building transportation solutions, and 5G testbeds, amongst other niche applications.
5G niche players are expected to benefit massively as many niche applications that were not realistic in other generations of mobile network of 5G are springing up, and Wireless Telecom Group should be one of the companies benefiting from this trend.
The company has demonstrated that its technology is up to the 3GPP standards for 5G New Radio (NR), Release 15, and this proves that they could compete technologically for a piece of the 5G niche pie.
With a market cap that has floated around $50M lately, the company’s stock is a micro-cap 5G stock with promising upsides. It has an average daily trading volume of 206,223 and is currently up over 35% YTD.
At the time of upgrading this piece, its 52 weeks high stood at $3.06 and its stock price is $2.42, which implies that it is almost 30% away from its previous 12 months high. Just getting back to its 12 months high of $3, will see it return a handsome 30%. The stock is doing pretty well so far, and there’s little suggesting it can continue with this upward momentum.
6. EXFO Inc.
EXFO Inc. (NASDAQ: EXFO) provides test, monitoring, and big data analytics solutions for fixed and mobile telecommunications networks. The company offers a variety of instruments used to monitor the quality of optical signals, diagnose and repair problems within an optical network.
The company has specific solutions for telecom service providers, network equipment manufacturers, government agencies, and web scale companies and data centers amongst few others.
EXFO is the leading company offering fiber optic test solutions globally, over 90% of the world’s top communications service providers use its testing solutions. And as the entire telecommunication industry is transitioning to 5G networks, EXFO’s testing and monitoring solutions for 5G mobile networks will drive the company’s growth for the foreseeable future.
The company’s stock price is currently under $5 and is up over 40% YTD. It generated a revenue of $265.6M in 2020 and has a market cap of $266.51M, with an average daily trading volume of 61,644.
EXFO has had quite a great run since November 2020, when it traded as low as $2.56. I expect a pullback from the stock soon, however, it has the potential to bounce back from any pullback and go as high as $6 per share in 2021.
7. Wipro Limited
Wipro Limited is a multinational information technology headquartered in India. It has products and services targeted to different IT spaces from network management to IT consulting and design.
The company has over 180,000 employees spread across six continents dedicated to providing clients with products and services that will help them adapt to the technological changes of the digital world.
Wipro has been in the IT business for decades, going all the way back to the 1980s. However, the company which was found as “Western India Palm Refined Oil Limited” and later abbreviated to “Wipro”, started as a manufacturer of refined oils. And since the transition into an IT company, the company has largely stayed so.
Today, It serves customers in various industry verticals with its wide range of IT products and services primarily in the Indian market. Customers in verticals such as banking, financial services, and insurance; health business; consumer business; energy, natural resources, and utilities; manufacturing; technology; and communications; and even government/defense departments.
In 2020, the company launched its 5G edge services solutions suite which was targeted at 5G tower companies, telecom operators, cell site infrastructure providers, and enterprises. The suite comprises offerings such as EdgeCent, Digital Design Studio, BoundaryLess Universal Edge platform – BLUE, and Tririga.
Wipro’s stock that trades in the New York Stock Exchange as WIT, has a stock price under $10, with its exposure to 5G and the IT space in general, it is expected to benefit directly and indirectly from the 5G boom. The company has a market cap of over $35 billion and its stock is currently up over 14% YTD.
8. VEON Ltd
VEON Ltd. (NASDAQ: VEON) through its subsidiaries, provides wireless connectivity and internet services in Russia, Pakistan, Ukraine, Kazakhstan, Georgia, Kyrgyzstan, Algeria, Bangladesh, and Uzbekistan. It offers voice and data telecommunication services through a range of mobile and fixed-line technologies to over 200 million customers.
The company provides these services through five of its brands Beeline, Kyivstar, Jazz, Djezzy, and banglalink.
In 2019, the company through one of its joint-venture, KaR-Tel, which operates under the Beeline brand, launched a large-scale 5G network trial in Kazakhstan as part of its efforts to develop a viable 5G ecosystem in Kazakhstan and Central Asia. VEON is currently developing its 5G ecosystem in partnership with Nokia.
The company focuses more on growing its 4G network than deploying 5G at the moment. Based on its Q3 2020 report, it had just reached 50% 4G penetration in Kazakhstan which has driven double-digit revenue growth for the company.
It’s clear to see that VEON is not a 5G play for the now, however, it is a long-term 5G play. Understandably, 5G will not be deployed at the same time across the globe, the most advanced countries will adopt 5G technology years before it gets to less advanced countries, like the Central Asian countries VEON serves.
VEON’s stock price trades under $5 and is up 15% YTD, it sees an average daily trading volume of 3,502,458 and has a market cap of $3.2 billion.
9. KT Corporation
KT Corporation provides telecommunications services in Korea and internationally.
The company offers local, domestic long-distance, and international long-distance fixed-line and voice over Internet protocol fixed-line telephone services, as well as interconnection services; broadband Internet access service and other Internet-related services; and data communication services, such as leased line and broadband Internet connection services.
It also provides media and content services, including IPTV, satellite TV, TV home shopping, digital contents distribution, information and communication technology platform consulting, digital music streaming, and downloading and online advertising; and credit card processing and other financial services.
In addition, the company offers information technology and network services, and satellite services; sells handsets and miscellaneous telecommunications equipment; develops and sells residential units and commercial real estate; and rents real estate properties.
Further, it maintains public telephones; security, B2C and B2B, investment fund, software development and data processing, value added network, system integration and maintenance, mobile marketing, PCS distribution, satellite broadcasting, cloud system implementation, network installation and management, and data center development and related services.
Additionally, the company is involved in the Internet banking ASP and security solutions, residential building development and supply, sports group management, music contents investment, technology business finance, software development and supply, foreign investment, and electronic communication businesses.
As of December 31, 2019, the company served approximately 21,922,000 mobile subscribers and 8.4 million IPTV subscribers.
The company was formerly known as Korea Telecom Corp. and changed its name to KT Corporation in March 2002. KT Corporation was founded in 1981 and is headquartered in Seongnam, South Korea.
10. Sequans Communications S.A.
Sequans Communications S.A. develops and provides 5G and 4G chips and modules for massive, broadband, and critical Internet of Things (IoT) markets.
For 5G/4G massive IoT applications, the company provides a comprehensive product portfolio based on its flagship Monarch LTE-M/NB-IoT and Calliope Cat 1 chip platforms featuring low power consumption, a set of integrated functionalities, and deployment capability.
For 5G/4G broadband and critical IoT applications, Sequans Communications S.A. offers a product portfolio based on its Cassiopeia Cat 4/Cat 6 4G and high-end Taurus 5G chip platforms optimized for residential, enterprise, and industrial applications.
SQNS has gone up over 12% YTD, and growth not expected to be massive in 2021 (like a 100% return), however the stock has been relatively stable and would be a good pick for investors that are looking to avoid excessive risks in their portfolio. It has a market cap that hovers over $200 million over the past couple of months, it small-cap company that plays a leading role in providing critical chips and modules for 4G and 5G market.