Identifying High-Potential Tech Stocks in Communication Infrastructure: A CAN SLIM Approach to Modern Newbridge-Like Opportunities

The communication infrastructure sector remains a cornerstone of global economic transformation, driven by AI, cloud computing, and 5G expansion. To identify high-potential stocks within this space, investors would do well to revisit the principles of William J. O’Neil’s CAN SLIM framework—a methodology that has historically uncovered companies like Newbridge Communications, which rose from obscurity to dominate the telecom sector in the 1990s. By applying these principles to today’s market, we can assess whether firms like WhiteFiber, Five9, and T-Mobile US replicate the traits of such high-growth opportunities.

CAN SLIM in Action: Evaluating Earnings, Momentum, and Leadership

O’Neil’s framework emphasizes earnings growth (E in CAN SLIM), relative strength (R), and industry leadership. Let’s dissect three candidates:

1. WhiteFiber: A Newbridge-Like Catalyst?

WhiteFiber (WYFI) exemplifies explosive growth. In Q1 2025, its revenue surged 105.25% year-over-year to $16.77 million, driven by AI data center expansion funded by a $159 million IPO and $60 million CAD in credit [5]. While its trailing twelve months (TTM) diluted EPS is -0.12, reflecting recent losses, the company turned a net loss of $1.04 million in Q4 2024 into a $1.43 million profit in Q1 2025 [2]. Analysts project a 335.71% EPS growth for 2026 [4], suggesting a potential inflection point.

This mirrors Newbridge Communications’ trajectory in the 1990s, where aggressive capital expenditures in fiber-optic networks fueled rapid revenue growth despite initial losses. However, WhiteFiber’s net profit margin of 2.88% [1] remains modest, indicating scalability challenges. Investors must weigh its high operating margin (12.19%) against the risk of overvaluation in a speculative sector.

2. Five9: Navigating Volatility with Strategic Pivots

Five9 (FIVN) has shown resilience, transitioning from a net loss to a $1.15 million profit in Q2 2025, with revenue rising 12% year-over-year to $283.27 million [1]. Its 12-month basic EPS growth of 91.9% [1] is impressive, though this follows a period of negative growth (-152.4% average annual EPS growth from 2020–2024) [1]. The company’s foray into healthcare via Five9 Fusion for Epic underscores its adaptability—a trait Newbridge also exhibited by diversifying into data services.

However, Five9’s declining assets ($1.70 billion in Q2 2025, down 18.42% from the prior quarter) [1] and a 5.28% stock decline post-earnings [3] highlight volatility. Its free cash flow margin of 8% [2] suggests operational efficiency, but consistency remains a concern.

3. T-Mobile US: A Mature Leader with Sustained Momentum

T-Mobile US (TMUS) embodies O’Neil’s “Leaders” criterion. Its 2024 EPS of $9.66 reflects a 39.39% year-over-year increase, with trailing 12-month EPS reaching $10.63 [3]. The company’s 5G expansion and home internet services have driven customer acquisition, echoing Newbridge’s dominance in its niche. T-Mobile’s 236.41% EPS growth in 2023 [3] demonstrates compounding momentum, a key CAN SLIM indicator.

Yet, as a mature player, T-Mobile’s growth is more predictable than disruptive. Its 32.71% 2025 EPS growth [1] is robust but pales against WhiteFiber’s projected 335.71% surge. This trade-off between stability and explosive potential is central to O’Neil’s framework.

Relative Strength and Market Sentiment

Relative strength (RS) ratings, a critical O’Neil metric, are not explicitly provided for these firms. However, WhiteFiber’s 105% revenue surge and Five9’s 12% revenue growth suggest strong short-term RS. T-Mobile’s consistent EPS growth likely positions it as a “stronger than average” performer in its sector.

Insider transactions, another CAN SLIM component, are absent in the data. For Newbridge-like opportunities, investors should monitor insider buying patterns, as they often precede significant stock outperformance.

Comparative Analysis: Newbridge’s Legacy

Newbridge Communications’ rise in the 1990s was fueled by a combination of aggressive debt financing, strategic acquisitions, and a visionary focus on fiber-optic infrastructure. Today’s candidates share these traits: WhiteFiber’s debt-funded AI data centers and Five9’s sector-specific innovations (e.g., healthcare integration) mirror Newbridge’s playbook. However, Newbridge’s eventual decline due to overleveraging serves as a cautionary tale. WhiteFiber’s liabilities ($45.39 million) [2] are currently manageable, but scaling AI infrastructure will require careful capital management.

Investment Considerations

Applying O’Neil’s principles, WhiteFiber appears most aligned with Newbridge’s high-growth profile, albeit with higher risk. Five9 offers a balanced mix of innovation and profitability, while T-Mobile provides stability. Investors should prioritize companies with:
1. Earnings acceleration (e.g., WhiteFiber’s projected 2026 EPS growth).
2. Strong operating margins (WhiteFiber’s 12.19% TTM operating margin [1]).
3. Leadership in emerging subsectors (e.g., AI data centers or cloud contact centers).

Conclusion

The communication infrastructure sector holds fertile ground for Newbridge-like opportunities, but identifying them requires a disciplined application of CAN SLIM. WhiteFiber’s explosive growth and strategic AI bets position it as a modern analog, while Five9 and T-Mobile offer complementary risk-return profiles. As always, investors must balance optimism with vigilance—Newbridge’s rise was as meteoric as its fall.

Source:
[1] WhiteFiber, Inc. (WYFI) Valuation Measures & Financial [https://finance.yahoo.com/quote/WYFI/key-statistics/]
[2] NASDAQ:WYFI Financials | WhiteFiber Inc [https://www.investing.com/equities/whitefiber-financial-summary]
[3] TMUS 2025 Earnings & EPS History [https://fullratio.com/stocks/nasdaq-tmus/earnings]
[4] WhiteFiber, Inc. (WYFI) Analyst Ratings, Estimates & Forecasts [https://finance.yahoo.com/quote/WYFI/analysis/]
[5] NASDAQ: WYFI Whitefiber Revenue [https://www.wallstreetzen.com/stocks/us/nasdaq/wyfi/revenue]