Page 13 - Bloomberg Businessweek - November 19, 2018

Bloomberg Businessweek The Year Ahead 2019 50 Companies to Watch

▷ 5G’s Delayed Entrance

Is the dawn of fifth-generation mobile network-builder Ericsson AB estimates that Smart glasses next five years. The
networks, which will move greater volumes the number of internet-of-things device main motivation:
of data more quickly, finally here? For connections will jump more than threefold by cost reduction.
several years, carriers and tech companies 2023, most of that increase will come from Meeting data
have talked about the great 5G possibilities fixed network connections, not cellular ones. demands with 4G
involving augmented reality and the internet The main hurdle to 5G investment is the lack networks through
of things—including factories that adapt of a clear business case, given low demand 2025 would be
automatically to demand and self-driving cars for fast data, according to a Moody’s survey about twice as
that talk to each other. The reality is likely to of European telecommunications companies. expensive as with
be a lot more mundane, for now at least. A rapid 5G rollout is unlikely, particularly 5G, the Boston Consulting Group estimates.
The first 5G networks are coming online in Europe, where 4G adoption is still relatively For all the technological promise, the
in 2019, and 5G-enabled smartphones are low. Carriers such as Vodafone Group Plc will real driver of 5G in the short term will be the
expected in the second half of the year. While more gradually add 5G capabilities over the bottom line, not growth. ——Alex Webb

48 Wabtec Corp. ▲ WAB US
Industrials Est. sales 18.1% Total 12-month 1-year total Female board
Est. EPS
sales
return
assets
growth
growth
membership
$6.7b
$4.2b
7.8%
5.2%
8.3%
The rail transport equipment company—formed in 1999 U.S. freight car orders
through the merger of Westinghouse Air Brake Co. and 40k
MotivePower Industries Inc.—will double in size in 2019,
once its acquisition of GE Transportation closes. The 95
merger, plus a recovering freight transport sector and
technological innovations, positions Wabtec for growth. 20
0
Q3 2011 Q3 2018
DATA: RAILWAY SUPPLY INSTITUTE
49 WPP Plc ▼ WPP LN

Est. sales Est. EPS Total 12-month 1-year total Female board
growth growth assets sales return membership
Media -2.3% -7.1% $43.9b $20.7b -32.7% 27.3%

Lagging revenue growth, major account losses, and competition from technology consulting firms like
cuts in client spending are adding up to trouble for the Accenture and Deloitte. Getting a good price for its
advertising giant’s new CEO Mark Read. WPP needs Kantar data unit is essential to reduce debt and provide
to revamp its business model to catch up with main funds for targeted acquisitions.
rivals Omnicom, Interpublic, and Publicis, and to repel

50 Xylem Inc. −XYL US
Engineering Est. sales 23.4% Total 12-month 1-year total Female board
Est. EPS
return
sales
growth
growth
membership
assets
0%
20%
$7.2b
8.1%
$5b
After a streak of acquisitions, Xylem has become a tech- Margins may improve materially in 2019 as robust order
driven leader in equipment and services for water and intake converts to sales and incremental investment
wastewater utilities. The stock price has underperformed ends. A large federal infrastructure spending bill could
in the past year, after doubling in the four years prior. provide further upside.