Investing in 5G companies now is like investing in Internet companies in the early 90’s.
But while most investors are researching the fancy new 5G chip companies, I’m focused on the most significant piece of the 5G puzzle…
The web of networking cables crisscrossing the country that will bring information from all over the world right to your fingertips.
You see, the infrastructure for 5G hasn’t even been fully built out yet. And the parts that have been built aren’t even fully being utilized yet…
In order to generate the insane processing speeds, thousands of new cell phone towers still need to be constructed.
Unlike 4G, 5G will require towers within several hundred yards of the connected device to ensure signal strength and speed because the radio frequency waves are shorter.
And every major telecommunications provider, like Verizon, AT&T, T-Mobile, Comcast, and even the Department of Defense will all have to pay the firms that build and manage these cell towers rent every month.
That’s my favorite way to profit in the 5G space today. And most of Wall Street is completely missing it.
Investing in a 5G tower stock is like owning tollbooth that major corporations have to pay a fee to use every time one of their customers connect to one of the cell towers you own…
And since they’re normally structured as REITs (real estate investment trusts), they’re legally required to pay out at least 90% of their taxable income as dividends to shareholders.
Here are my two favorite 5G tower stocks flying under the radar now…
The Second Most Promising Tower Stock in the 5G Market
SBA Communications Corp. (NASDAQ: SBAC) is a cellular infrastructure REIT with about 30,000 cell towers in North, Central, and South America.
The company leases space on its towers to cellular service providers under long-term contracts.
And it’s biggest clients include AT&T, Verizon, Sprint and T-Mobile.
SBA Communications also has a huge presence in Brazil. But it generates about three quarters of revenue in the US.
The company’s revenues of just over $2 billion last year represent steady growth since 2003 – that’s the last time revenues were down year-over-year.
SBAC’s key differentiator is its size, which is both a blessing and a curse. Here’s why I think it’s more of an advantage for investors now…
Smaller companies can grow faster and SBA Communications (with its $35 billion market cap) has past returns that are even better than those of American Tower Corp. (NYSE: AMT) and its $107 billion market cap.
Don’t get me wrong, American Tower is a great company doing many of the same things as SBA.
But at over three times the total valuation, there’s much less room for it to grow.
For example, American Tower is forecasting 20% earnings growth over the next five years.
But SBA Communications is projected to grow at a better than 80% annual clip.
SBAC is really a growth stock disguised as a real estate investment trust. It’s up 29% this year, compared to just 5% for AMT.
SBAC in the right place at the right time, making it one of my top 5G tower stocks to own now.
And if you thought that was good, wait until you check out my No. 1 pick…
It’s a single play that will let you earn money from every single company in the 5G sector.
But get this, I’m guessing that only one in 36,000 people even know this company exists.
This is your chance. This company is poised to go vertical. They’ve already inked contracts with some of the biggest, most successful media companies.
Huge corporations — T-Mobile, Cox, Sprint, and dozens more — are all ready to cough up billions of dollars for just a piece of the tech this small company has to offer.
But here’s the kicker:
This company is still trading for less than $10 a share.
If you’ve got a ten in your pocket (or, better yet, $20!) you can get your foot in the door with this unbelievable profit opportunity.
I’ve compiled all of my research on this firm, data, statistics, the ticker symbol, and even my target buy and sell prices.