The Internet of Things: The Opportunity of a Lifetime?

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(By Rebecca Lipman)

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 devices range from smart phones and tablets, to TVs and DVD players, security systems, GPS and tracking systems, and oh-so-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 5-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.

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1. China Unicom (Hong Kong) Limited (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 5 years at 32.45%. Share price as of 10/17 at $19.56.

2. Meru Networks, Inc. (MERU): Engages in the development and marketing of a virtualized wireless LAN solution. Market cap at $122.32M. EPS growth rate for the next 5 years at 28.33%. Share price as of 10/17 at $6.81.

3. MetroPCS Communications, Inc. (PCS): MetroPCS Communications, Inc., 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 5 years at 26.58%. Share price as of 10/17 at $9.06.

4. Alvarion Ltd. (ALVR): Supplies top-tier carriers, Internet service providers (ISPs), and private network operators with wireless broadband solutions. Market cap at $56.81M. EPS growth rate for the next 5 years at 25% . Share price as of 10/17 at $0.98.

5. UTStarcom, Inc. (UTSI): Designs and sells Internet protocol (IP)-based telecommunications infrastructure products to telecommunications service providers and operators worldwide. Market cap at $209.21M. EPS growth rate for the next 5 years at 22% . Share price as of 10/17 at $1.33.

6. Neutral Tandem, Inc. (TNDM): Provides voice, Internet protocol (IP) transit, and Ethernet telecommunications services worldwide. Market cap at $336.09M. EPS growth rate for the next 5 years at 20%. Share price as of 10/17 at $10.33.

7. NII Holdings Inc. (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 5 years at 19.32%. Share price as of 10/17 at $28.

8. NTELOS Holdings Corp. (NTLS): Provides integrated communications services primarily in Virginia, West Virginia, and Tennessee. Market cap at $767.13M. EPS growth rate for the next 5 years at 19%. Share price as of 10/17 at $17.85.

9. Knology, Inc. (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 5 years at 17.7%. Share price as of 10/17 at $13.8.

10. Telephone & Data Systems Inc. (TDS): Provides wireless and wireline telecommunications services in the United States. Market cap at $2.28B. EPS growth rate for the next 5 years at 16.3%. Share price as of 10/17 at $21.79. 



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , Technology


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