The mobile communications industry is poised for significant growth, with analysts predicting a 2.80% compound annual growth rate until 2029. This surge is expected to propel the market’s annual value from $1.65 trillion in 2021 to an estimated $2.07 trillion by 2029. Goldman Sachs has taken notice, upgrading its outlook on three major telecom stocks: AT&T, Verizon, and T-Mobile.
AT&T, a legacy player in the industry, is expected to continue delivering strong results. Goldman’s analysts predict improved revenue in the wireless sector and a possible stock buyback. The company’s management has expressed a positive outlook, which has boosted investor confidence.
Verizon, another giant in the mobile communications market, is set to have a strong quarter thanks to upgraded wireless service and increased new subscriptions. While there is room for improvement in some areas, Goldman remains bullish on Verizon’s prospects.
T-Mobile rounds out Goldman’s top picks, with analysts predicting upside to street estimates for postpaid phone net additions and an uptick in 2024 guidance. The company’s long-term performance potential has been overlooked by some investors, making it an attractive opportunity.
For investors who prefer to avoid the volatility of the stock market, real estate investment trusts (REITs) like American Tower and Digital Realty Trust offer an alternative. These REITs operate satellite towers and communications infrastructures, providing exposure to the growing wireless sector while offering share value appreciation and passive income through dividends.
In addition, certain private market real estate investments are providing retail investors with high-yield opportunities. The Ascent Income Fund from EquityMultiple, for example, targets stable income from senior commercial real estate debt positions and has a historical distribution yield of 12.1% backed by real assets.
With the mobile communications industry poised for significant growth, investors have a range of opportunities to capitalize on this trend. Whether through traditional stocks or alternative investments like REITs and private market real estate, there are ways to tap into this booming sector.
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