The market is in a challenging condition right now, but it’s the perfect time to start finding some companies for the watchlist as the valuations begin to get more attractive during this market selloff.
The fastest-growing sector in tech is, without a doubt, 5G. Some estimates place the growth at around 47%-122% CAGR over the next few years, meaning that there's a lot of room to grow and money to be made in the industry. Even right now, the US government has pushed forward a $65B infrastructure bill including the development of 5G across the US. One company I've been looking at, $ESTW.V (EasTower Wireless), is a company aiming to provide 5G infrastructure services across the US.
- $ESTW.V already has numerous relationships with many major telecom and technology giants due to their long history in the industry.
- Current operations only in Florida with plans to expand to surrounding states within the next 24 months.
- They provide both maintenance and construction of cell tower infrastructure allowing them to continually generate revenues over the long term.
The recent financial results showed a decrease in revenues, however, profit margins were consistent year over year despite the focus on the IPO and supply chain difficulties. I’m interested to see how they can perform as they now focus on expansion here. With 2022 revenue estimates at $3M, the current market cap of $5.4M is very interesting at these levels. $ESTW.V is definitely one to keep an eye on for the long-term as they continue to expand operations.