Call Up These Telecom And Networking Stock For 2022

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Telecommunications stocks run the gamut from rapid growth leaders in tech sectors such as 5G deployment and cloud to more utility-type players in enterprise cell towers and consumer phone services. Our Participating Investment Experts Moneyshow Top Picks 2022 Report Take a look at a diverse range of telecom and networking stocks for those looking to turn a profit in 2022.

Karl Delfeld, Cabot Explorer

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Marvel Technology Group (MRVL) is a lesser known stock that has been on my radar for a while now; It’s a semiconductor, 5G, and software considerations, he explains. The best game on 5G can be smart devices – that is, the “Internet of Things”. It is the name of all web-enabled devices that collect, send and act on data by using sensors, processors and other hardware to talk to each other.

5G is much more than just fast internet. With data rates 100 times higher than 4G technology, it will have a huge impact on a range of industries and services, from robotics to artificial intelligence, self-driving cars and of course, smartphones.

Marvell designs, develops and sells a variety of semiconductor products that are at the core of 5G-enabled networks, processors and devices as they partner with and transition to 5G.

The company’s embedded processors and products are state-of-the-art and are already generating billions of dollars in annual sales. The company’s reputation as a player in this 5G space built, as it revolutionized the digital storage industry by transferring data at speeds that exceed expectations.

New markets are emerging in which Marvel has a first-mover advantage such as virtual reality, drones, data integration and consumer and industrial robotics. These are all big markets, giving Marvel a long runway for growth. With seven of the top 10 automotive original equipment manufacturers (OEMs) buying Marvell chips, the company is poised for a solid growth trajectory in this market.

Jim Kelleher, Argus Research

we believe Qualcomm
qcom
(QCom) is uniquely positioned to profit as 5G goes mainstream, which is one of our key themes for 2022. In a highly positive FY21, Qualcomm benefited from multi-year licensing agreements and sales of Snapdragon processors to major Asian handset makers, as well as continued momentum with Apple.
AAPL
(AAPL).

Although Apple may try to use its own 5G modems to displace Qualcomm chips over time, that change is not imminent. And while the sale of the chip to Apple is worthwhile, in our view the licensing agreement with Apple is the more significant revenue and profit contributor.

Qualcomm — which has been in almost constant litigation over the past two decades we’ve followed the company — has put all or most of the legal issues behind and could focus on leading the 5G market in a multi-year rollout.

We expect 5G to be a large market driver and profitable revenue opportunity for Qualcomm, bringing current market strength to a mature 5G device market. The massive ramp-up of 5G handsets that began in late 2020 should continue to gain momentum in calendar 2022 and beyond.

Jeffrey Hirsch, Stock Trader’s Almanac

We screen for reasonably solid valuations, revenue and earnings growth and relatively low price-to-sales and price-to-earnings ratios. We then look for positive price and volume action as well as other constructive technical and chart pattern signals. Finally, we turn to stocks that fly under Wall Street’s radar, which have a small average number of analysts who follow.

A10 Network
Athens
(ATN) is a leading provider of secure cloud application services and solutions for on-premises, multi-cloud and edge-cloud environments at hyperscale. The firm enables service providers and enterprises to deliver business-critical applications that are secure and efficient for multi-cloud transformation and 5G readiness.

Their products and services future-proof infrastructure to help provide their customers with the most secure and available digital experience. Their portfolio of cutting-edge solutions optimizes, accelerates and secures applications and networks for enterprises, service providers and government organizations. Growing organically with existing customers and adding new business ATNs demonstrate a strong balance sheet and solid growth potential.

Brett Owens, Contrarian Outlook

With faster internet speeds and 5G becoming a non-transferrable US right, American Tower (AMT) is our backdoor development game. The company — a growth-oriented favorite for the year ahead — is a landowner for mobile phone traffic, such as collecting fares from carriers through its 170,000 towers. AT&T
Tea

This company is the “pick and shovel” on broadband. The phrase “pick n’ shovel” dates back to the gold rush of the 1840s, when crowds flocked to California to obtain rich mining for the metal.

The people who made real money didn’t really mine anything. They were entrepreneurs who sold “picks and shovels” as well as alcohol, “entertainment” and housing to hapless speculators.

We are not smuggling liquor. Instead, we are investing in cell phone towers owned by AMT. It is a capital-intensive operation which provides a wide business gap to the firm. It also scales quite well.

Once an AMT has built a tower, it can easily support an additional tenant or two. Check out the example below – it’s as simple as bolting a few extra tools.

The return on investment (ROI) that the AMT generates from a “one tenant tower” is just 3%. However, it jumps with each additional tenant, increasing the ROI to 13% for two tenants and 24% for three tenants!

Plus, this landlord is expanding his empire into data centers. AMT is acquiring Corsight Realty
Corner
(COR), a best-in-breed data center REIT. It’s an interesting extension to AMT as it sports “5G Monopoly”.

AMT is structured as a REIT (real estate investment trust), which means it pays most of its profits directly to investors in the form of dividends.

We’ve owned the stock in our Hidden Yields portfolio (my service dedicated to dividend growth) since the end of 2018 and enjoyed an overall 87% return. Our profits are largely thanks to the fact that AMT increases its dividend every quarter.

The stock’s forward yield is listed at a modest 1.9%, but isn’t up for gold. This dividend is growing 15% annually — and that payout keeps pulling its stock price higher and higher.

Timothy Lutes, Cabot Stock of the Week

For aggressive investors, the technology industry has long offered the most exciting opportunities for rapid growth, as the world’s appetite for data transfer, storage and analysis continues to grow.

Recent years have seen the cloud take center stage and Arista Networks
A trap
(ANET) is a play on that, as its tools operate at the edge of the cloud. Arista has always been a leader in this space, with multilayer network switches and software-driven networking solutions for cloud data centers and other (usually large) computing environments.

In the third quarter, Arista boasted eye-opening sales growth and astute supply chain management, along with an attractive buyback program. The company reported projected-beating revenue of $749 million, up 24% from the prior year and 6% sequentially, with earnings per-share of $2.96 beating the consensus by 23 cents.

Management expressed confidence in the outlook by increasing its share repurchase program to $1 billion (2.5% of its current market cap value) as well as announcing a four-for-one stock split.

More importantly, Arista feels that the best is yet to come. Management sees 2022 sales growth accelerated to 30% (up from 25%-ish this year), well above analysts’ expectations, and revenue growing at a 15% compound annual rate over the next five years (by 2025) Reaching annual revenue of $5 billion) ) based on the growing demand from cloud computing customers.

For the stock — which has been public since 2013 — the earnings report in early November made a big difference, and the stock is consolidating that gain, laying the groundwork for the next advance. Aggressive investors can buy here.

Brian Perry, Hi-Tech Trader

Perion Network Limited (PERI) is poised to outperform in 2022. Based in Israel, Perion provides advertising solutions to brands, agencies and publishers in North America, Europe and elsewhere around the world.

It offers Wildfire, a content monetization platform, search monetization solution, actionable performance monitoring platform and a cross-channel social software as a service platform that provides return on money spent on ads.

The company offers solutions in analytics for marketing campaigns on an artificial intelligence (AI)-powered platform that helps define and optimize how content is created for the highest level of impact on target consumers and business. Perion also markets tools for managing content on websites and for publishers who build websites.

Perion posted Q3 earnings per share (EPS) of $0.40. Which beat estimates of $0.12 on revenue of $121.02 million (+45.1% year/year), up from $12.06 million. The company raised guidance for the fourth quarter and full year.

In 2022, management was expected to generate revenue of $455 million to $465 million (consensus: $438.29 million) and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $59 million to $61 million, versus $415 million to $430 million. Prior guidance is expected. million and $50 million to $51 million, respectively.

Following a $100 million secondary stock offering on December 8, PERI shares are trading at $23. This is far from the most recent high…

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