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Apple has finally rolled out 5G iPhones. This points to a multiyear effort to build actual working 5G networks. You might think the best way to play this trend is to focus on the largest network infrastructure players, but some smaller companies can be very rewarding for investors. Jamie Cuellar, who co-manages the Buffalo Small Cap Fund
named five companies he expects to benefit from “the increased demand for communications bandwidth,” including 5G, over the next several years.
The 5G rollout has been long touted, but the new technology, which will move data at 100 times the speed of current 4G networks, is only available within some cities. However, Apple Inc.’s
rollout of two 5G-enabled iPhones phones this week, with starting prices unchanged from last year’s iPhones, underlines how quickly demand for the faster networks will grow. Here are five small-cap companies that Cuellar believes are primed to take advantages of “a good multiyear spending environment” for 5G network construction, sorted alphabetically. Scroll the table at the bottom to see all the data.
Total return – 2020 through Oct. 13
Market cap. ($mil)
Forward Price/ earnings ratio
Estimated change in sales – calendar 2020
Change in …
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