Top 3 Technology Stocks Under $ 20- Ericsson

 

2-Ericsson

Ericsson (NASDAQ: ERIC) is the world's third largest manufacturer of telecom equipment after Huawei and Nokia (NYSE: NOK). All three companies are currently helping their customers expand their new 5G networks, but Ericsson is unquestionably stronger than its two major competitors for a variety of reasons. Huawei faces blacklists and sanctions that damage 5G equipment and 800G business. Nokia's $ 16.6 billion acquisition of Alcatel-Lucent in 2016 has focused too much on reducing costs. As a result, Huawei and Nokia fell behind Ericsson in their 5G investments. And today they are still grappling with the consequences of this. Nokia lost several major 5G contracts in China during the trade war. Suspended its dividend to allocate more cash for 5G investments.

As a result, Nokia CEO Rajeev Suri resigned last year.

In return, Ericsson kept its contracts in China, continuing to pay dividends. In the midst of an unprecedented crisis, he did not abruptly change his CEO.

Analysts expect revenue to increase by 15 percent and earnings by 16 percent this year as Ericsson has sold more 5G products, Huawei tackles regulatory challenges, and Nokia benefits from implementation issues.

These are robust growth rates for a stock traded with only 14x forward earnings. Ericsson also provides a reasonable return of 1.7 percent.   Top 3 Technology Stocks Under $ 20- Ericsson Source: https://www.fool.com/ You may also be interested in:

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