2 5G Stocks to Buy Before They Break Higher
The potential economic fallout of the coronavirus pandemic hung heavy over Wall Street going into the second quarter 2020 earnings season, but with earnings season winding down indications are that the performance was not as bad as feared. According to RBC Capital Markets, Q2 earnings results were largely better than analysts' expectations, with 83% of S&P 500 firms estimated to have trounced forecasts.
Profit declines were also lower than expected, indicating that businesses may have weathered the impact of COVID-19 to some extent. The technology sector was one of the biggest winners during the earnings season, accounting for the highest number of names beating earnings estimates and upward estimate revisions per RBC. That's not surprising as tech companies are benefiting from lucrative trends such as 5G wireless networks, remote working, artificial intelligence, and data centers, among others.
In fact, tech names such as Qorvo (NASDAQ: QRVO) and Micron Technology (NASDAQ: MU) also managed to complete their turnarounds during the quarter thanks to favorable business conditions, the 5G rollout, and higher demand for data center equipment. More importantly, it is likely that these two chipmakers will be able to sustain their impressive runs in the forthcoming quarters. Let's see why.
Source Fool.com