The telecom industry expects to see growth due to innovations and increasing adoption of 5G technology. Thus, foreign telecom stocks Telefónica, S.A. (TEF), Telia Company (TLSNY), Telefônica Brasil (VIV), and Turkcell (TKC), which are currently trading under $10, could be solid additions to one’s portfolio.The global telecom industry is rapidly transforming with carriers upgrading to 5G service which will increase capacity and bandwidth. Furthermore, given the rising dependence on the internet, especially amid the remote lifestyle, the 5G wave is expected to completely radicalize the global telecom industry. As a result, the global telecom services market is expected to grow at a CAGR of 5.4% between 2021 and 2028.
Investors have been betting on telecom stocks amid the gradual 5G network commercialization, which is expected to be the next big thing in the tech space. This is evident from the SPDR S&P Telecom ETF’s (XTL) 41% gains over the past year compared to the broader SPDR S&P 500 ETF Trust (SPY) 32% returns.
Given this backdrop, global telecom stocks Telefónica, S.A. (TEF), Telia Company AB (TLSNY), Telefônica Brasil S.A. (VIV), and Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC), which are currently trading under $10, could be solid bets now.