5G Stocks in Canada: What to Buy in 2023?

With 5G networks slowly but surely being rolled out all over the world, there’s no doubt that this new technology will change the way we live and work. This presents a massive opportunity for investors to get in on the ground floor of what is sure to be a significant technological shift.

If you’re thinking about investing in 5G stocks, you’re not alone. Many people wonder which 5G stocks in Canada are worth investing in. Luckily, we’ve done the research for you and compiled a list of the frontrunners in the 5G space.

6 Best 5G Stocks in Canada

Best 5G Stocks to Buy in Canada Right Now

Let’s look at the top 6 companies that have all made significant investments in 5G technology and are well-positioned to take advantage of the coming 5G revolution. 

1. TELUS

• Founded: 1990
• 2021 gross revenue: $4.9 billion
• Ticker: T

Telus is one of the leading Canadian 5G companies and has been at the forefront of its development for several years. Headquartered in Vancouver, Telus provides wireless, Internet, and TV services to nearly 9 million customers across the country.

In addition, the company operates one of the largest fibre optic networks in Canada, which will be crucial for 5G deployment. 

Over the years, Telus has established more precise operating margins than its peers, which gives it more room to develop its technologies and grow its 5G stocks. In fact, data shows that in 2022, 5G could account for as much as 20% of the company’s total network traffic. 

Jumping into the specifics, the corporation’s 5G stock price in Canada had experienced a consistent rise since October 2020, when it had reached a comfortable $22.78. Fast forward to March 2022, the average price tag sits at $33.3, experiencing a 46% surge in that time frame.

2. Sierra Wireless

• Founded: 1986
• 2021 gross revenue: $473.2 million
• Ticker: SW

Sierra Wireless is a cellular communications equipment company based in Vancouver. The company’s primary focus is on connecting people and devices wirelessly, making them a key player in the 5G space.

In particular, Sierra Wireless provides LTE modules and gateways, essential components of any 5G network. Sierra Wireless is one of the few companies that stand to benefit regardless of which standard is ultimately adopted, making it one of the best 5G stocks to invest in. 

The company is expected to dominate the ‘Internet of Things’ module market, estimated to be worth $9 billion by 2025. Sierra Wireless has already partnered with major companies such as Microsoft, AT&T, and Verizon to develop 5G solutions.

As 5G adoption grows, Sierra Wireless is expected to see a significant increase in demand for its products, effectively setting itself apart from the other Canadian 5G stocks. 

Investors have already noticed Sierra Wireless’s potential, and the company’s stock price has surged in recent months. Since March 2020, the stock price has more than doubled and is currently trading at around $20.73. These numbers seem quite promising for long-term investments.

3. BlackBerry

• Founded: 1984
• 2021 gross revenue: $893 million
• Ticker: BB

From its modest beginnings in Waterloo, Ontario, BlackBerry has become a global leader in mobile network security. Today, the company provides software and services to enterprise customers in over 175 countries. This exponential growth is largely thanks to BlackBerry’s focus on security, which is more important than ever in the age of 5G. 

With the introduction of this network, there’s an imminent increase in the number of devices connected to it and a corresponding increase in the amount of data being transmitted.

At first glance, this presents a major challenge for security, as more devices and data mean more opportunities for hackers. Fortunately, BlackBerry’s software is designed to address this challenge by providing a secure platform for 5G providers in Canada to build their applications on. 

In terms of numbers, BlackBerry has some of the best 5G stocks on the Toronto Stock Exchange. It had an impressive run in 2020, starting the year at $6.84 and peaking at $24.32 in December.  In 2022, the average price comes in at $17.14, representing a 149% increase from 2020. 

4. Enghouse Systems Ltd.

• Founded: 1984
• 2021 gross revenue: $467 million
• Ticker: ENGH

This Canadian software company develops enterprise applications for a variety of industries. Its products are used by over 8,000 customers in over 100 countries, making Enghouse one of the world’s leading software and telco providers. This global outreach has helped it become one of the top 5G companies to invest in as of right now.

Enghouse’s focus is on customer management and contact centre solutions, which will continue to be in high demand as 5G adoption grows.

The company’s products are already being used by major 5G service providers such as Verizon and AT&T. This trend is expected to continue as Enghouse’s products are well-suited for the needs of the 5G network.

Enghouse has outperformed the TSX Composite Index by a wide margin when it comes to financials. In 2020, the company’s stock price increased by 33%, while the TSX Composite Index only rose by 5%. Despite experiencing a slight dip at the beginning of 2022, the average stock price stands at a solid $37.29, effectively leading the top Canadian 5G penny stocks.

5. Rogers Communications

• Founded: 1960
• 2021 gross revenue: $12.53 billion
• Ticker: RCI.A

Next up, we have the most prominent wireless voice and data communications services provider in Canada, with 10 million subscribers. Rogers is also the country’s leading provider of cable television, high-speed Internet, and home phone services. Given its track record, it’s no wonder that it’s found its way onto the list of best 5G stocks to buy right now.

As the first company to launch 5G in Canada, Rogers is in a prime position to capitalize on the growing demand for these services. The company has already invested over $2 billion in its 5G network and is committed to expanding its coverage to reach 99% of Canadians by the end of 2022. 

If you get into the official numbers, Rogers’ stock increased by 24% in 2021 and is currently trading at an average price of $75.05. The steady GDP growth is expected to continue in the coming years, easing past the average costs of 5G stocks at the TSX.

6. BCE Inc.

• Founded: 1983
• 2021 gross revenue: $18.71 billion
• Ticker: BCE

BCE provides a wide range of telecommunications services to residential and business customers across Canada. Formerly known as Bell Canada Enterprises, it rebranded itself to the simpler BCE Inc. in 2008. With its headquarters in Montreal, Quebec, the company has managed to leave its mark on the Canadian 5G landscape.

Since the initial introduction of 5G technology, BCE has been working hard to bring these services to its customers. In 2022, it has expanded its 5G network to reach over 90% of the population.

This makes it one of Canada’s most widespread 5G networks and a major player in the Canadian 5G terrain. These factors contribute to its branding as one of the best 5G stocks to buy in the country.

As for stock prices, BCE has experienced substantial growth since January 2021, when the average number stood at $54.24. As of March 2022, the median price reached $70.35, representing a 30% increase. These upwards trends are expected to continue as 5G adoption grows.

5G Stocks: A Glimpse

The term ‘5G stocks’ generally refers to any publicly traded company that stands to benefit from the rollout of 5G technology. This can include companies that make the actual 5G hardware, carriers that develop 5G applications or services, or even those that simply stand to benefit from the increased demand for data that comes with the network.

Investing in these stocks is seen as a way to profit from the 5G revolution, which is expected to bring about a major shift in the way we go about our lives.

These days, there are a number of 5G companies to invest in, making it a lucrative opportunity for those looking to cash in on the craze.

Despite the tempting nature of 5G company stock investments, it’s worth noting that there are also a number of risks to be aware of.

Some of these potential mishaps could cause severe financial losses, so it’s essential to do your research before deciding whether or not to invest. After all, 5G technology is still relatively new, meaning that there’s a chance it could fail to live up to the hype.

But even so, the economic impact of 5G is far-reaching and touches several industries, including healthcare, agriculture, education, and transportation. There’s no doubt that 5G will bring about a new era of innovation and efficiency, making it easier for us to connect and collaborate on a global scale.

So, if you play your cards right and put your money on the best 5G stocks to buy right now, you could see some serious returns in the years to come.

Conclusion

At the end of the day, buying 5G stocks in Canada is a great way to hitch a ride on the technological advancements highway and potentially make some serious profits. Considering its booming economy and favourable dividend returns, 5G is a solid stepping stone for investors looking to make a killing in the stock market.

Of course, there are risks involved, as with any investment, and it’s important to do your due diligence before putting any money down. But if you determine that it’s worth the gamble, then buying some stocks could be a decision that pays off big time.