As far as growth sectors of the market go, 5G is one top area many investors are looking at right now as a potential long-term play. Those seeking a top 5G stock may do well to consider Rogers Communications (TSX:RCI.B)(NYSE:RCI) right now.
Well, we’re going to get into that in a second. However, Rogers’s size and market positioning is sublime. For investors looking to take the telecom angle to the 5G trend, Rogers continues to be my top pick right now.
Let’s dive into why Rogers is a great long-term 5G stock that investors should consider right now
Connectivity penetration makes Rogers a top 5G stock
Rogers has stated its focus is shifting toward two primary objectives during the post-pandemic recovery. The first is to provide high-speed connectivity to rural and remote areas. This happens to be aligned with regulator goals and may assist the company in its acquisition attempt for Shaw Communications. So, perhaps no surprise here.
The second key strategic objective the company is after is rolling out its 5G technology in a timely fashion. This is important due to the market share considerations of this rollout. Given the fact that 5G is expected to be roughly 100 times faster than existing 4G technologies, consumers are likely to switch relatively quickly. The telecom with the best 5G network will have the upper hand. And the hope is that Rogers will be able to retain those customers over time.
Rogers’s 5G rollout has been the best in its class thus far. Additionally, the acquisition of Shaw positions Rogers well to continue to take market share away from its peers. This market positioning is the key reason I’m homing in on Rogers as a top 5G stock right now.
Rogers is more than just a 5G play
One of the interesting things about Rogers is the company’s diversified portfolio of businesses. The company’s core telecommunications business is its bread and butter, no doubt. However, the company’s sports and entertainment business is also very large.
The return of sports happens to be a big deal for Rogers and has been the wildcard many investors have pointed to with this telecom play for some time. The pandemic has significantly impacted the company’s Blue Jays and Sportsnet franchises. Advertising revenue plummeted last year, though the recovery has been impressive. This past quarter, Rogers reported $546 million in revenue. That’s a stark 88% turnaround from the same time last year.
Accordingly, Rogers appears to be firing on all cylinders. I’m of the belief this is a great 5G stock to buy right now. But there are other reasons to own this stock as well.
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.
Fool contributor Chris MacDonald has no position in any stocks mentioned in this article. The Motley Fool recommends ROGERS COMMUNICATIONS INC. CL B NV.