Wireless communication is one of the most essential tools in the modern age. This is why there’s a rapidly growing market for 5G technology with an estimated 17.8% CAGR until 2027 (with NA growing at a 92% CAGR). Companies like AT&T are pouring hundreds of billions into building the required infrastructure due to the improvements over 4G tech and the increasing number of uses that 5G provides.
I’ve been looking into big and small companies to capitalize on this growth, and one company, in particular, stands out, EasTower Wireless ($ESTW.V). As I said before, companies are investing heavily in the required infrastructure. Since 2015 EasTower has specialized in the construction/installation, and maintenance of this infrastructure. They do this in several different ways:
- Network rollout project management
- Cellular builds and fibre optic installations
- Ongoing maintenance and secure warehouse service
Considering their services can reach a wide variety of customers from the government to wireless telecom providers (they’ve already worked with AT&T and MasTec), I can understand why 2022 revenue projections are at $3M with impressive YOY growth to $11M in 2023. Additionally, they’re only operating in the South East US, so as they expand into more states across the US, they should be able to continuously grow their client base and revenues.
Great coverage here from Equity Guru if you want a more in-depth analysis of the company and the overall 5G infrastructure market: https://equity.guru/2022/03/29/bigger-than-electricity-is-a-bold-call-but-eastower-wireless-estw-is-a-5g-picks-and-shovels-play/
They just had their IPO on the TSXV today and took a pretty big dip on open. However, this provides a fair valuation as they move into the next stage and start delivering results to us.
(TSXV: ESTW)