The Internet of Things: The Opportunity of a Lifetime?
Oct 18th 2011 3:28PM
Updated Oct 18th 2011 3:30PM
The "Internet of Things" is a term that describes the many objects in the physical world that are now connected to the web. It also describes an industry that is expected to earn mobile device operators nearly $1.2 trillion in revenue by 2020.
When discussing The "Internet of Things" we refer to connected devices that are part of systems tuned into larger systems, or information bases, that the Internet offers. The devices "talk" with each other, exchanging services and data. Such connected devises range from smartphones and tablets, to TVs and DVD players, security systems, GPS and tracking systems, and much more.
There are roughly 9 billion devices connected to the Internet, 6 billion of which are mobile devices, reports Giga.com. That number is projected to reach 24 billion total devices by year 2020, half of them mobile.
The growth in connectivity and data storage -- along with the $2.1 trillion in anticipated revenues -- could mean a big opportunity for wireless communication stocks prepared to meet the growing demand for devices and infrastructure.
So we were wondering, which wireless communications stocks are expected to see significant earnings growth over the next year?
To find out, we compiled a list of wireless communication stocks with market caps over $50 million and searched among them for five-year EPS estimates over 15%.
Do you think these stocks should be trading higher? Use this list as a starting-off point for your own analysis. (Click here to access free, interactive tools to analyze these ideas.)
1. China Unicom (Hong Kong) Limited (NYS: CHU) : Engages in the provision of GSM and WCDMA cellular, and related telecommunications services in the People's Republic of China. Market cap at $45.06B. EPS growth rate for the next five years at 32.45%. Share price as of 10/17 at $19.56.
2. MetroPCS Communications (NYS: PCS) : MetroPCS Communications,, a wireless telecommunications carrier, together with its subsidiaries, provides wireless broadband mobile services in the United States. Market cap at $3.26B. EPS growth rate for the next five years at 26.58%. Share price as of 10/17 at $9.06.
3. Neutral Tandem (NAS: TNDM) : Provides voice, Internet protocol (IP) transit, and Ethernet telecommunications services worldwide. Market cap at $336.09M. EPS growth rate for the next five years at 20%. Share price as of 10/17 at $10.33.
4. NII Holdings (NAS: NIHD) : Provides wireless communication services to businesses and individuals primarily in Mexico, Brazil, Argentina, Peru, and Chile. Market cap at $4.90B. EPS growth rate for the next five years at 19.32%. Share price as of 10/17 at $28.
5. NTELOS Holdings (NAS: NTLS) : Provides integrated communications services primarily in Virginia, West Virginia, and Tennessee. Market cap at $767.13M. EPS growth rate for the next five years at 19%. Share price as of 10/17 at $17.85.
6. Knology (NAS: KNOL) : Provides video, voice, data, and advanced communications services to residential and business customers in the southeastern and midwestern United States. Market cap at $532.75M. EPS growth rate for the next five years at 17.7%. Share price as of 10/17 at $13.8.
7. Telephone & Data Systems (NYS: TDS) : Provides wireless and wireline telecommunications services in the United States. Market cap at $2.28B. EPS growth rate for the next five years at 16.3%. Share price as of 10/17 at $21.79.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Rebecca Lipman does not own any of the shares mentioned above. Data from Finviz.
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