Investors are always looking to invest in the next hot technology stock.
The problem, however, is that these companies often overheat long before wide-scale deployment of their technologies around the world.
For example, 5G technology has unleashed a wave of investor interest.
But the last two years have been marked by speculation on which companies will win the race to 5G battle.
At Money Morning, however, we are able to cut out all the noise from the market.
Using a simple tool that we designed, we can tell which 5G and other tech stocks are ready to break out at any time...
It's called the Money Morning Stock VQScore™.
This proprietary system rates every profitable public company using a variety of metrics. Then it assigns each stock a score from 0 to 4.9.
The higher the score, the more likely the stock is to break out in the weeks and months ahead. A score above 4 puts the stock in our "Strong Buy Zone."
This week, one of the market's best 5G stocks and telecommunication companies popped up with a perfect VQScore of 4.9.
It has "first mover advantage" in one of the most important pieces of real estate around the world.
In this article, I'm going to tell you how it could climb 50% or more in the year ahead.
Let's get started...
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Shaw Communications Inc. (NYSE: SJR) is one of the largest providers of residential communication services in Canada. It is also one of the fastest-growing infrastructure companies for wireless communications - targeting more than 18 million Canadians who live within the firm's wireless network area.
And it stands to be one of the bigger players in 5G as the rollouts come in the year ahead.
The company only has about 4% of the wireless market in Canada (compared with a collective 90% for Rogers, BCE, and Telus).
But it's time to bet on this underdog in the race for 5G.
Shaw was largely ignored and wasn't considered one of the "must own" 5G stocks back in 2018. That's odd to me, considering the progress it made...
Roughly 18 months ago, the company completed its first 5G technical trials in Calgary.
The firm conducted the trials with partners Nokia, CableLabs, and Rohde & Schwarz. And overall, the firm showed the ability to leverage 28 GHz mmWave and 3.5GHz spectrum to deliver the lightning-fast speed for 5G technology.
Even before 5G takes off, Shaw Communications is a deeply underappreciated stock.
The company maintains very strong cash flow - with more than $606 million alone returned to investors in fiscal 2019 in dividends. Shaw reported year-over-year free cash flow of $545 million for the year, a figure that represented 41% growth in that area.
The company announced that its free cash flow will increase to $700 million in fiscal 2020.
The firm has also been putting its money to work wisely...
While Canada has a population that is roughly one-tenth the size of the U.S. population, consumer trends are very similar, as is demand for best-in-class wireless communications.
Shaw expanded into 19 new wireless markets this year, adding another 1.4 million Canadians to its network area.
The firm's sustained expansion into Western Canada will bring a wave of new customers into its base, allowing it to package other services like satellite, phone, video, and Internet services.
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But looking forward, Shaw looks like a dominant player in 5G communications in Canada. Earlier this year, the firm paid 492 million Canadian dollars for 11 paired blocks of 600 MHx spectrum for its Freedom Mobile division.
The company obtained 30 MHz in each of three provinces: Alberta, British Columbia, and Southern Ontario. It also picked up 20 MHz in Eastern Ontario.
Shaw will use this spectrum as the foundation to its 5G expansion. This is why analysts expect that the firm will have "first mover advantage" in Canada on 5G.
In April, IDC Canada Communications Research Vice President Lawrence Surtees predicted that Shaw's Freedom Mobile would beat rivals Bell, Rogers, and Telus to the punch and deploy a potential "unlimited" data plan that would help it boost its existing 4% market share in the wireless markets.
Even if the company doubles its market share or becomes a potential acquisition target for one of the larger companies, shares are poised to surge.
Shaw Communications currently trades for about $20 per share with a rock-solid dividend of 4.6%.
It also has a perfect VQScore of 4.9. That makes it a screaming buy in this environment.
The company has potential upside of $30 per share over the next 12 months.
That figure represents upside of nearly 50% from current levels.
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