Apple (NASDAQ:AAPL) has been one of the most rewarding stocks in the last decade. It rose by 81% in 2020 and is trading with 8% gains in January. The company’s efforts to make its products nearly perfect have made it one of the world’s most valuable brands.
In the last decade, Apple stock yielded solid 1,070% positive returns. The company is considered immensely successful not only by tech enthusiasts but also by the world’s greatest investors like Warren Buffett. That’s why Apple is the single largest stock holding of Buffett’s investment firm Berkshire Hathaway. Currently, Berkshire Hathaway holds about 944.3 million Apple shares.
Apple is slated to release its latest quarterly results on Wednesday. Analysts expect the company to report adjusted earnings of $1.41 per share in the first quarter of fiscal 2021. It would be about 13% higher than its earnings of $1.25 in the first quarter of fiscal 2020.
The American tech giant has already raised its bets on the 5G technology as its recently released iPhone 12 — its first smartphone with 5G support. As the 5G technology becomes widely available, it could help Apple continue ruling the smartphone market in North America.
However, it’s not just Apple that’s betting big on 5G technology, here are two great Canadian stocks that you can buy to benefit from the 5G revolution. These stocks could even beat Apple stock in the medium term.
Telus (TSX:T)(NYSE:TU) is a Vancouver-based telecommunication giant. In the next few years, most Canadians will be using the 5G mobile technology, which is why Telus is betting high on it. The company currently makes more than half of its revenue from the wireless network segment. 5G technology adaptation is likely to boost its revenue from the segment further.
The recent trend in Telus’s financials is strong. It continued to report positive sales growth in the first three quarters of 2020, despite the COVID-19-related challenges. While its fiscal 2020 earnings are expected to fall due to the pandemic-related headwinds, analysts expect it to report about 21% earnings growth in 2021.
Telus stock ended the year 2020 on a mixed note without any major change. Nonetheless, its recently increased investments in 5G infrastructure and stable growth from the wireline segment could help it outperform the broader market in 2021.
Sierra Wireless (TSX:SW)(NASDAQ:SWIR) is another great TSX stock if you want to benefit from the upcoming 5G boom. The company makes wireless communication equipment — including machine-to-machine modules and gateways.
In the last decade, the company’s stock has soared as the 4G communication technology went mainstream. As the 5G technology goes mainstream, you can expect even a bigger rally in Sierra Wireless stock. In October last year, the company announced its AirLink MG90 5G platform’s availability, which is the world’s first multi-network 5G vehicle router.
With the rising demand for electric and autonomous cars, the demand for 5G networking devices for vehicles could skyrocket in the coming years. That’s why I find its stock a great buy right now.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
David Gardner owns shares of Apple and Sierra Wireless. The Motley Fool owns shares of and recommends Apple and Berkshire Hathaway (B shares). The Motley Fool recommends TELUS CORPORATION and recommends the following options: short March 2021 $225 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.