4 Telecom Losers Of 2019 That Could Win Handsomely In 2020
Zacks Investment Research | Dec 26, 2019 08:25PM ET
As curtains fall on an eventful 2019, investors seek to review their portfolio to identify stocks that appear bruised and battered, but hold solid potential for a healthy ROI in 2020. Before we try to do the same for the telecom sector, let us delve a little deep into its overall performance in the outgoing year.
2019: The Year in Perspective
The telecom stocks witnessed a roller-coaster ride in 2019 as President Trump flip-flopped on the trade war. The industry faced a gamut of trade restrictions and tariffs that affected its supply-chain mechanism and dented profitability. The Sino-U.S. tariff war virtually led to intense technology warfare between the two superpowers of the global economy, forcing the industry to get polarized into two distinct halves, bringing an element of uncertainty within the rank and files of the telecom sector. After maintaining his usual tirade against the unfair trade practices by the China, Trump appeared intent to strike a deal on numerous occasions, only to backtrack. The on-again-off-again trade war skirmishes and its cascading effect on the bilateral trade sent confusing signals to the market that bore the brunt of the geopolitical crisis, leading to intense volatility.
The bone of contention stemmed from an innate desire to claim dominance in cutting-edge technologies and the next generation of wireless services as the industry remained on the cusp of 5G boom. Although both the United States and China were on equal footing for 5G readiness by mid-2019, the communist nation seemed to be inching ahead in the later stages of the year with large-scale deployment and commercialization.
However, the industry scripted a remarkable turnaround and witnessed an upward trajectory toward the end of the year, courtesy the last-minute “Phase One” trade deal between the United States and China. Although the two sides are yet to sign the agreement (which is likely to take place in January 2020), the partial trade accord represents a major breakthrough in the 21-month standoff between the world's two largest economies. The trade truce buoyed investor sentiments and propelled the industry to mirror broader equity market performance.
Screening Stocks
We have used the Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.