Industry Overview - The Zacks Wireless Non-US industry is positioned to benefit from strong demand trends driven by the increasing need for connectivity, despite facing challenges such as high capital expenditures, margin erosion, and supply chain disruptions due to geopolitical conflicts [1][5] - The industry includes mobile telecommunications and broadband service providers that offer voice services, IoT solutions, content streaming, and various IT services [3] Future Trends - Network convergence is driving significant investments from telecom and cloud service providers to meet the growing demand for coverage, speed, and quality in mobile broadband and home internet solutions [4] - Continuous network upgrades and optimization are essential to maintain performance standards, as telecom services are considered necessities with weak correlation to macroeconomic factors [4] Challenges - The industry is currently facing high production costs due to a shortage of chips and increased raw material prices influenced by geopolitical conflicts, which have negatively impacted profitability [5] - Price-sensitive competition is expected to intensify, affecting customer retention and overall financial results [5] Growth Strategies - Companies in the industry are focusing on subscriber growth, churn management, and enhancing customer loyalty through unlimited plans and improved network connectivity [6] - Strategic acquisitions and geographical expansion are key strategies for increasing market presence and revenue [6] Industry Performance - The Zacks Wireless Non-US industry has a Zacks Industry Rank of 44, placing it in the top 18% of over 250 Zacks industries, indicating positive near-term prospects [7][8] - However, the industry has underperformed compared to the broader Zacks Computer and Technology sector and the S&P 500 over the past year, with a gain of only 3.3% [9] Valuation Metrics - The industry has a trailing 12-month Price/Book (P/B) ratio of 1.06X, significantly lower than the S&P 500's 7.82X and the sector's 9.09X [12] Notable Companies - TIM S.A. is a leading communication service provider in Brazil, focusing on aggressive 5G rollout and aiming for a long-term earnings growth expectation of 16.1% [15] - Ceragon Networks Ltd. specializes in wireless backhaul and fronthaul solutions, providing efficient network rollout and optimization services [16] - PLDT Inc. is the leading telecommunications provider in the Philippines, expanding its fiber network and aiming for a long-term earnings growth expectation of 7.5% [19]