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3 Stocks Poised to Soar With Incoming 5G

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Do you remember dial up? It seems like only yesterday I would have to ask my parents to hang up the phone if I wanted to work on a school project via internet. Yet today, here I am, communicating with people around the world, writing articles and sending them off within moments thanks to today’s internet connection.

Yet things are set to get even faster. The introduction of 5G is being touted as a huge boost for tech executives around the world, providing the ability to usher in even more tech applications. For example, you can’t have an autonomous car if it needs to wait and download the map ahead. With 5G, that’s now possible as the download would be all but instantaneous. And that’s only the beginning.

Canada won’t be left out. In fact, here are three companies that stand to gain quite a bit with the introduction of 5G.

Sierra Wireless

Let’s start with the obvious with Sierra Wireless (TSX:SW)(NASDAQ:SWIR), the company that would be actually creating the 5G modules many people would be using. Sierra already provides device-to-cloud services for the Internet of Things (IoT) and is now working with Qualcomm to create this new module. Sierra has a proven track recording of providing top of the line services in IoT, aiming to “reduce complexity, turn data into intelligence and get [clients] connected products and services to market faster.”

Yet despite this news, the company has lagged recently as Sierra continues to go through restructuring. This had led investors to fear the company won’t produce the profits it once had, even with 5G introduced. However, as 5G is introduced and the company continues to cut back, Sierra should see some serious gains in the near future.

Telus

Another company set to make some serious gains with 5G is Telus (TSX:T)(NYSE:TU). In fact, most telecommunications companies are set to soar because of 5G, as it’s incredibly likely each client will have to upgrade their services to keep up. With 5G, everything will be so fast that data usage will soar, making it unlikely someone will want to have anything less than a 10 GB data plan.

The reason Telus should benefit in the extreme is because it is the most focused on its wireless sector, rather than trying to also be in the internet and television markets as well. That has created a company that has created the “largest and fastest” network of the telecommunications companies, according to the company. As 5G is introduced, more and more customers could come over to Telus to take advantage of that network.

BlackBerry

Another no brainer to benefit from 5G is BlackBerry (TSX:BB)(NYSE:BB). The company has been trending on the lower end of its share price, but that should all change if BlackBerry just continues doing what it’s been doing. Rather than providing the hardware like Sierra, BlackBerry has moved to the software side. And this could be huge for recurring revenue in the future.

The company has turned its focus on cybersecurity in the IoT. With pretty much every company on the face of the earth needing internet to run its business, that leaves them open to cyber threats. With 5G, those threats could come stronger and faster, meaning these businesses will need BlackBerry to help protect them. Also, as mentioned earlier autonomous cars are now being introduced, and BlackBerry has been working with numerous companies to bring this dream to reality. Given it’s continued to trade below $10 per share, this stock is an absolute steal right now.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. David Gardner owns shares of Sierra Wireless. Tom Gardner owns shares of Qualcomm. The Motley Fool owns shares of BlackBerry, BlackBerry, Qualcomm, and Sierra Wireless. BlackBerry is a recommendation of Stock Advisor Canada.

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