Crown Castle, Cirrus Logic and Keysight Technologies
Growing demand for better connectivity owing to rapid digitization and continued hybrid working trends have been driving the growth of the 5G market. Therefore, we think fundamentally sound 5G stocks Crown Castle (CCI), Cirrus Logic (CRUS) and Keysight Technologies (KEYS) could be solid bets now. Continue reading.
Ongoing digitalization across industries and increased demand for efficient cloud-based services to support hybrid working arrangements have driven the market for 5G technology. The need for more bandwidth, lower latency, faster download speeds, and efficient performance makes 5G technology an integral part of many businesses.
Although ongoing supply chain disruptions are delaying the delivery of raw materials and input costs have risen lately, significant funding from last year’s bipartisan infrastructure bill sheds light on growth prospects. long term in the industry. Investor interest in this space is evident in the Direxion Daily 5G Communications Bull 2X Shares ETFs (TENG) Gains of 6.6% in the last month. And the 5G technology market is expected to grow at a pace CAGR of 71.9% to $248.40 billion by 2028.
Given the industry’s exceptional growth outlook, we believe 5G stocks are fundamentally sound Crown Castle International Corp. (ICC), Cirrus Logic, Inc. (RAW) and Keysight Technologies, Inc. (KEYS) could be solid bets now.
Crown Castle International Corp. (ICC)
CCI is a Real Estate Investment Trust (REIT) that owns, operates and leases over 40,000 cell towers and approximately 80,000 miles of fiber route supporting small cells and fiber solutions in the US market. Its business provides access, including space or capacity, to its shared communications infrastructure through long-term contracts in various forms, including lease, license, sublease and service agreements. CCI is based in Houston, Texas.
On January 6, 2022, CCI and T-Mobile US, Inc. (TMUS), an American wireless network operator majority-owned by the German telecommunications company Deutsche Telekom AG (DTEGY), signed a new 12-year agreement to support the continued construction of TMUS’ nationwide 5G network with increased access to CCI’s small cell towers and locations. The agreement is expected to extend the reach of CCI’s comprehensive infrastructure, comprised of towers, small cells and fiber, and drive long-term growth.
For its fourth quarter of fiscal 2021, ended December 31, 2021, CCI’s net revenue was $1.65 billion, representing a 10.8% year-over-year improvement . The company had $292 million in Cash and cash equivalents as of December 31, 2021.
Analysts expect CCI’s EPS to improve 53.4% year-over-year to $3.88 for its 2022 fiscal year, ending Dec. 31, 2022. It beat estimates of Street’s EPS in three of the past four quarters. The consensus revenue estimate of $6.88 billion for the same fiscal year indicates an 8.5% year-over-year improvement. The company’s EPS is expected to grow at a rate of 12.4% per year over the next five years. Over the past year, the stock has gained 11.5% and closed yesterday’s trading session at $196.52.
ICC POWR Rankings reflect this promising prospect. The stock has an overall B rating, which equates to a buy in our proprietary rating system. POWR ratings are calculated by considering 118 separate factors, with each factor weighted to an optimal degree.
The stock has an A rating for growth and a B rating for stability and momentum. Click here to see additional ratings for CCI’s value, quality and sentiment.
CCI is ranked No. 10 out of 50 stocks in the REITs – Diversified industry.
Cirrus Logic, Inc. (RAW)
CRUS provides integrated circuits (ICs) for audio and voice signal processing applications. The Austin, Texas-based company offers wearables in smartphones, tablets, digital headsets and wearables. Its non-portable audio and other products include analog and mixed-signal components that target the consumer market, including smart home applications and automotive, energy and industrial markets.
On July 8, 2021, CRUS agreed to acquire Lion Semiconductor, an electronic parts supplier, for $335 million in cash. The acquisition gives CRUS access to Lion’s proprietary fast-charging products and strong intellectual property portfolio and accelerates its growth in the high-performance mixed-signal space.
CRUS’s net sales for its third quarter of fiscal 2022, ended December 25, 2021, increased 12.9% year-over-year to $548.35 million. The company’s non-GAAP gross profit was $289.77 million, an increase of 15.1% over the prior year period. Its non-GAAP operating profit was $174.25 million, up 19.4% from the prior year period. While its non-GAAP net income increased 17.3% year-over-year to $149.80 million, its non-GAAP EPS increased 19.3% to $2.54. The company had $195.12 million in cash and cash equivalents as of December 25, 2021.
The consensus EPS estimate of $6.30 for its 2022 fiscal year ended March 31, 2022 represents a 37.6% year-over-year improvement. It has exceeded Street’s EPS estimates in three of the past four quarters. Analysts expect CRUS revenue to grow 25% year-over-year to $1.71 billion for the same fiscal year. The company’s EPS is expected to grow at a rate of 15% per year over the next five years. The stock is down 8.3% over the past year and ended yesterday’s trading session at $78.86.
CRUS’ strong fundamentals are reflected in its POWR ratings. The stock has an overall rating of B, which is equivalent to Buy in our proprietary rating system.
It has a B rating for Growth, Value and Sentiment. Click here to see additional ratings for CRUS stability, quality and momentum.
CRUS is ranked No. 24 out of 96 stocks in the A rating Semiconductor and wireless chip industry.
Keysight Technologies, Inc. (KEYS)
KEYS of Santa Rosa, Calif., provides electronic design and test solutions to the commercial communications, networking, aerospace, defense and government, automotive, energy, semi-industry industries. -conductors, electronics and education internationally. The Company operates through its Communications Solutions Group and Electronic Industrial Solutions Group segments. It offers product support, technical support, training and consulting services and sells its products through a direct sales force, distributors, resellers and manufacturer’s representatives.
On April 6, 2022, Luxshare Technologies, a global designer and manufacturer of cable, connector, module assembly and subsystem solutions, announced a collaboration with KEYS to provide an advanced solution to validate the interoperability of data center equipment in complex 800 Gigabit networks. Ethernet (GE) environments. As Data Center Operators (DCOs) move towards 800GE to accelerate the switching silicon upgrade cycle to achieve power saving benefits, the combination of Keysight test system G800GE and LuxshareTech’s advanced photonic integration technology addresses interoperability challenges and enables the data center community to accelerate validation of optical transceivers of 112G power paths and network infrastructure. Businesses are expected to experience strong demand in the coming months.
For its first quarter of fiscal 2022, ended January 31, 2022, KEYS revenue increased 5.9% year-over-year to $1.25 billion. The company’s operating income was $271 million, an increase of 27.8% over the prior year period. KEYS’ non-GAAP net income rose 13% year-over-year to $305 million. Its non-GAAP EPS was $1.65, up 15.4% from the prior year period. The company had $1.98 billion in cash and cash equivalents as of January 31, 2022.
Analysts expect the company’s EPS to rise 12.5% from the prior year period to $7.01 for its fiscal 2022, ending Oct. 31, 2022. It topped Street’s EPS estimates in each of the last four quarters. The consensus revenue estimate of $5.28 billion for the same fiscal year indicates a 6.9% year-over-year improvement. KEYS’ EPS is expected to grow at a rate of 10.2% per annum over the next five years. The stock has gained 3.8% in price over the past month and closed yesterday’s trading session at $151.32.
KEYS’ POWR ratings reflect this promising outlook. The stock has an overall B rating, which equates to a buy in our proprietary rating system.
The stock has an A rating for quality and a B rating for stability and sentiment. Click here to see additional ratings for KEYS Growth, Value and Momentum.
KEYS is ranked #5 out of 48 stocks in the Technology – Electronics industry.
CCI shares were unchanged in premarket trading on Friday. Year-to-date, the CCI is down -5.05%, compared to a -5.07% rise in the benchmark S&P 500 over the same period.
About the Author: Sweta Vijayan
Sweta is an investment analyst and journalist with a particular interest in researching market inefficiencies. She is passionate about educating investors, so they can succeed in the stock market.
The post office 3 5G stocks to buy for the second quarter of 2022: Crown Castle, Cirrus Logic and Keysight Technologies appeared first on StockNews.com