Secular growth trends are everything these days. Among the most popular secular trends in Canada today, 5G technology is one of the top trends that I would suggest investors consider right now.
In this context, I will discuss why I think Rogers Communications (TSX: RCI.B) (NYSE: RCI) is the best way to play 5G right now.
Fast and efficient deployment
Rogers is ahead of its competition in terms of 5G deployment. The company’s partnership with Ericsson has allowed Rogers to take the lead in building its infrastructure and providing the best possible service to its customers.
This lead may seem unimportant at the moment, given how new to 5G is at the moment. That said, capital spending in this area will be the main focus for investors, and I think Rogers has the upper hand in that regard. Rogers, unlike some of its competitors, is able to fund most of its deployment with existing operating cash flow. If more debt is needed, there is no better time to raise money now than in this environment. It’s a big win for investors in capital-intensive companies like Rogers.
Ability to spend huge more for investors
Rogers has a great growth plan for long-term investors, and I think investors should focus on this closely. The amount of capital expenditure in the telecommunications sector will be enormous in the years to come. Companies that are able to allocate the best resources are likely to win the race in the hearts of 5G users. Right now, Rogers is ahead and increasing its lead in this important growing segment of the market.
Rogers has a considerable number of resources to accomplish this deployment faster than its competitors. Due to the company’s massive cash flow and integrated business model, I expect Rogers to outperform its competition in 2021. Therefore, this stock is expected to deliver above-market returns for investors.
At the end of the line
In a few years, 5G will be the only thing that matters to telecom investors. The 5G experience is exponentially better than what came before. With the majority of consumers having access to 5G starting this year, telecoms around the world will continue to scramble to gain market share. A market share advance is therefore now a massive operation, as it paves the way for a growth trajectory that will greatly benefit long-term investors.
The integrated nature of the company’s business model has made this title a top notch short contender throughout the pandemic. For example, the company’s athletic activity has plummeted due to the pandemic, although we should see a marked increase in 2021 with the return to “near-normality” in professional sports arenas.
These other stocks also have major secular trends that support their success. Check them!
Motley Fool Canada issues 5G buy alert
5G is one of the greatest technological advances since the birth of the Internet. We could see many new opportunities for wealth creation in 2020 that may eclipse those that come their way.
5G has the potential to drastically change our lives and society as we know it, but if you’re an investor the implications are even greater – and potentially much more lucrative.
To learn more about this and its revolutionary potential to change the industry – and potentially your bank account – click on the link below to learn more.
Silly contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends ROGERS COMMUNICATIONS INC. CL B NV.