Industry Overview - The Zacks Wireless Non-US industry is positioned to benefit from strong demand trends driven by the increasing need for connectivity in the digital age, despite facing challenges such as high capital expenditures, margin erosion, and supply chain disruptions [1][5] - The industry includes mobile telecommunications and broadband service providers that offer voice services, IoT solutions, content streaming, and various IT services [3] Growth Opportunities - Companies like América Móvil, TIM, and SK Telecom are expected to capitalize on long-term growth opportunities due to rising demand for scalable infrastructure and the proliferation of IoT and 5G deployment [2] - The industry is focusing on network optimization to meet the growing demand for coverage, speed, and quality, necessitating significant investments in advanced networking architecture [4] Challenges - The industry is currently facing challenges such as a shortage of chips, high raw material prices due to geopolitical conflicts, and increased competition from over-the-top service providers, which are impacting profitability [5] - Price-sensitive competition is expected to intensify, affecting customer retention and overall financial results [5] Strategic Focus - Industry players are taking steps to enhance subscriber growth and manage churn, including geographical expansion and strategic acquisitions [6] - Companies are adopting unlimited plans to improve average revenue per user and are focusing on increasing customer loyalty and handset connections [6] Market Performance - The Zacks Wireless Non-US industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500, gaining 51.7% over the past year compared to 16.5% and 22.9% for the S&P 500 and sector, respectively [9] - The industry currently holds a Zacks Industry Rank of 81, placing it in the top 33% of over 250 Zacks industries, indicating positive near-term prospects [7][8] Valuation Metrics - The industry has a trailing 12-month EV/EBITDA ratio of 4.37X, significantly lower than the S&P 500's 18.88X and the sector's 19.01X, suggesting potential undervaluation [12] Notable Companies - **SK Telecom**: A leading telecommunications provider in South Korea, focusing on 5G and AI technologies, with a stock gain of 38.2% over the past year and a Zacks Rank of 1 (Strong Buy) [14] - **América Móvil**: The largest telecommunications provider in Latin America, with a stock gain of 47.1% and a Zacks Rank of 2 (Buy) [17] - **TIM**: A major communication service provider in Brazil, focusing on 5G rollout and achieving a stock gain of 76% over the past year, with a long-term earnings growth expectation of 18.7% [20]