The race to 5G dominance hasn’t slowed down and penny stocks have clearly demonstrated that. Even the pandemic hasn’t placed a hard stop on new technological advancements in the new type of communications technology. But what exactly is 5G and which stocks have the market begun focusing on?
5G or “fifth generation” technology is a telecommunications standard for broadband cellular networks. This is the logical successor to the previous standard “4G”, which, by the way, is set to be deployed on the moon (more on that later). All devices on a 5G network are connected to the internet and phone networks by radio waves via an antenna system. Benefits of 5G include higher rates of speed, increased bandwidth, and generally wider accessibility benefiting higher traffic areas. While there’ve been concerns over the physical impact of 5G by some groups, the market is focusing more on the positives of this new tech, which has begun rolling out on a larger scale.
When it comes to 5G stocks, you’ve got your clear market juggernauts like Verizon (NYSE:VZ), Qualcomm (NASDAQ:QCOM), and even American Tower Corp. (NYSE:AMT). But what about cheaper stocks? Obviously, for the Robinhood army, penny stocks continue to remain a focus. For reference, we’re talking about listed stocks and not OTC penny stocks.
High volatility trading and the potential of “getting in early” are two of the main attractions of stocks under $5. While there’s plenty more risk of choosing lower-priced names, the obvious rewards may be much greater compared to some of the blue-chip peers. Here’s a list of 5G penny stocks trending recently. Will they be the best to buy right now or is it better to wait?5G Penny Stocks To Watch
- Globalstar Inc. (NYSEAMERICAN:GSAT)
- UTStarcom Holdings (NASDAQ:UTSI)
- Borqs Technologies Inc. (NASDAQ:BRQS)
- Veon Ltd. (NASDAQ:VEON)
Last week Globalstar was the center of attention for those looking for 5G penny stocks. The company and business partner Nokia (NYSE:NOK) entered into an agreement with Tideworks Technology to deploy Globalstar’s Band 53 spectrum at the Port of Seattle, Terminal 5. This was the second collaboration between Globalstar and Nokia at a US Port.
While most of 2020 was relatively quiet aside from a few select days last summer, recent weeks have seen a much more consistent uptick in GSAT stock. Then we see the obvious jump last week. Aside from the latest deal with Nokia, Globalstar has gained a bit more attention following November’s financial results and business update. Aside from its clear focus on 5G, the market should also note the company’s reach in other areas of tech and connected services. Dave Kagan, Chief Executive Officer of Globalstar, explained several notable initiatives that the company has in place.
“Our relationship with Fiat Chrysler and the Jeep brand continues to expand on multiple fronts, with the launch of our Spot Gen 4 Jeep edition, the addition of South America as a licensed territory, and promotional opportunities with other Jeep brand partners. The connected car market is a large and growing opportunity for the Company and we are looking to add additional partners beyond FCA and Jeep,” Kagan said in Globalstar’s Q3 business update.UTStarcom Holdings
Another one of the 5G penny stocks to watch is UTStarcom. In fact, the company has just released a new update that could be a point of focus this week. On Monday, the company announced the expansion of a cooperation with a mobile operator in Europe. The comapny will supply an advanced networking platform in support of the operator’s 5G deployment requirements.
UTStarcom also released its NetRing® TN704E metro access platform. This is the newest piece of the company’s SDN-enabled packet optical transport network product portfolio. This platform will be one of the main components of the mobile backhaul network expansion project with this mobile operator, in Europe.
Over the last few months, the company has been reaching new 5G milestones, which has contributed to the stock’s meteoric rise since November. In fact, shares of UTSI stock have climbed over 80% in that time. Certain things including progress in the development of its 5G optimized disaggregated router platform as well as new agreements with major mobile network operators have added to positive momentum for the company. Monday’s latest update continues adding to this string of progress.Borqs Technologies Inc.
This weekend we discussed Borqs among other tech penny stocks to watch this week. This came as the BRQS stock price saw its first meaningful move in over a month. Shares jumped from $1.07 to highs of $1.34 during Friday’s trading session. The move came as Borqs seemingly benefited from a move that the broader tech sector experienced. One of the things that have helped boost interest in the company in light of excitement for 5G penny stocks is what was announced in December.
The company signed an official agreement for a 5G industrial park project in China. Borqs reported that it signed with the Board Committee of Huzhou South Taihu New Area for the project. A joint venture will be set up in the area that will serve as Borqs’ China headquarters for 5G projects. This would add to the company’s growing list of infrastructure projects signed in the 3rd quarter. Borqs and SkyCentrics previously announced plans for a joint venture for manufacturing and delivering CTA-2045 technology-based products. These are for utility-scale automated smart controls.Veon Ltd.
One of the 5G penny stocks that have also jumped during November and December is Veon Ltd. Shares have risen from $1.23 at the start of November to highs last week of $1.75. This 40%+ move was also accompanied by several key updates. Many included raising copious sums of capital for investments into its subsidiaries.
Veon provides more than 210 million customers with voice, fixed broadband, data, and digital services. Its operations span 10 countries including Russia, Pakistan, Algeria, Uzbekistan, Ukraine, Bangladesh, Kazakhstan, Kyrgyzstan, Armenia, and Georgia. One of the larger developments over the last few months included details on Veon’s Russian unit, VimpelCom. It withdrew its wireless networks from Huawei and Nokia management in order to handle communications quality itself. Prior to this, the company had outsourced its management and network development to these two companies in 2017.