The 2 Best 5G Stocks to Buy This Week

If you've been following Money Morning, you already know how bullish we are on the best 5G stocks to buy out there. In fact, we've been looking at the market every week to help our readers find the best 5G stocks without having to get bogged down in all the noise.

"5G" is the fifth generation of the latest wireless technology, and it stands to be as much as 100 times quicker than 4G networks. That type of speed means little to no delay, and it'll even enable us to connect our computers, tablets, and phones together regardless of where we are.

It's a revolutionary technology that will benefit several technology sectors. In fact, with companies working on 5G, we'll see everything from self-driving cars, wearable IoT devices, AI medical diagnosis, and even virtual reality.

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And with the 2020 5G rollout just six months away, 5G stocks are inching ever-closer to their immense potential. Companies like AT&T Inc. (NYSE: T), T-Mobile US Inc. (NASDAQ: TMUS), and Verizon Communications Inc. (NYSE: VZ) have already implemented 5G networks in places like Indianapolis and Los Angeles. But over the last 12 months alone, 5G networks have expanded to at least 30 different cities in the United States.

And these companies are just a small percentage of the total 5G market.

According to MarketWatch, 5G services are already valued at $21.53 billion. Within the next four years, that value is forecast to soar to $85.84 billion. In the next six years, ResearchandMarkets says it'll triple to $252 billion. That's a whopping 1,000% increase from right now.

That could mean a life-changing windfall for investors who know where to look.

Luckily for you, we're up to date on the latest and greatest 5G stocks to buy.

Below, we have the two best 5G stocks to buy this week. Our Money Morning Stock VQScore™ system has even given both of them our highest possible score - meaning they're definite buys right now.

The Best 5G Stocks to Buy This Week, No. 2

Our first pick is International Business Machines Corp. (NYSE: IBM).

You already know this American information technology firm as a computing pioneer with operations in roughly 170 countries.

IBM has been at the forefront of the IT industry for over 100 years. And it originally started as a record-keeping company in New York. Nowadays, it has its hands in everything from nanotechnology to computer hardware, software, AI, cloud computing, network management, semiconductors, and 5G.

This means literally everything the company does will be directly impacted by 5G. In fact, nanotechnology is poised to make 5G phones even faster. The company's semiconductors are already being used by a variety of major companies. It even has a deal with Vodafone Group Plc. (NASDAQ: VOD) to manage its 5G networks.

IBM is also partnered with big companies like United Continental Holdings Inc. (NASDAQ: UAL), Apple Inc. (NASDAQ: AAPL), Exxon Mobil Corp. (NYSE: XOM), and Walmart Inc. (NYSE: WMT) for AI, cloud services, network service management, semiconductors, 5G networks, and more.

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Not only is IBM tapped directly into the coming 5G revolution, it's a fantastic stock to buy right now.

Its steady growth in combination with its experience and history means it makes more than enough to reward its shareholders. In Q1 2019 alone, IBM made $18.18 billion in revenue and $1.6 billion in net income. And the company gives that back to shareholders with a handsome 5% dividend yield.

Plus, shares are poised to break out soon, especially once 5G explodes.

Its current EPS is $3.07, but by December, Nasdaq expects it to jump to $5.09. IBM's shares currently trade for $128.27. But they're forecast to jump to $173 over the next year. That's a great 33.34% upside. Plus, it has a perfect VQScore of 4.75, which means this 5G stock could jump even higher. Money Morning believes Wall Street is seriously underestimating it.

But our top pick has a potential 61% upside...

The Best 5G Stocks to Buy This Week, No. 1

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Our top 5G stock this week is Intel Corp. (NASDAQ: INTC).

This is also an extremely well-known American technology company, but it's the second biggest semiconductor chip manufacturer in the entire world behind Samsung Electronics Co. Ltd. (OTCMKTS: SSNLF).

INTC has developed and supplied for computer manufacturers like Lenovo Group Ltd. (OTCMKTS: LNVGY), HP Inc. (NYSE: HPQ), Dell Technologies Inc. (NYSE: DELL), and Apple Inc. (NASDAQ: AAPL).

And while it's no longer a supplier for Apple following Apple's latest deal with Qualcomm Inc. (NASDAQ: QCOM), INTC has shifted its attention from 5G smartphone modems to 5G PC modems, IoT devices, 5G hardware, and 5G network infrastructure.

In fact, with its latest announcement of its 10-nanometer Ice Lake mobile central processing unit (the brain of the smartphone), its stock has gone up 1.38%. The company even laid out a new road map for its seven-nanometer graphics processing unit, which powers smartphone displays. The technology will be used for high-performance computing and data center AI that'll launch within the next three years.

This means Intel is poised to lead the vanguard for the 5G revolution. Plus, it has 50 years of success and profitability under its belt. So, the company has the experience necessary to navigate a new technological shift.

And the best part is the stock has huge upside potential.

With its fairly steady growth over the last decade, this company also makes more than enough money to give back to investors. In fact, with revenue of $16 billion and a net income of $4 billion, INTC pays a modest 2.9% dividend.

INTC stock is also forecast to boost the amount of money investors make per share. The company's 12-month EPS is already up 91.34% to $4.42. By 2020, its annual EPS is expected to reach $4.53 - resulting in a 2.5% bump on earnings per share.

This means investors who buy INTC stock now can expect steadily increasing cash flow throughout the year from their shares.

INTC stock currently trades for $43.30, but its price target is as high as $70. That would be a 61.7% increase within the year. But on top of that, it's also received a perfect VQScore of 4.75 as well. Which means Money Morning thinks this 5G stock is seriously undervalued and could soar much higher.

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About the Author

Daniel Smoot is a Baltimore-based editor who helps everyday investors with stock recommendations and analysis. He regularly writes about initial public offerings, technology, and more. He earned a Bachelor's degree from Towson University.

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