T-Mobile US, Inc. (TMUS), headquartered in Bellevue, Washington, is a major player in the telecommunications industry, known for its innovative wireless communication services and customer-centric approach. With a market cap of $232.96 billion, T-Mobile has established itself as a key force in the telecom sector by providing advanced mobile connectivity solutions and expanding its 5G network.
Companies valued at $200 billion or more are typically classified as "mega-cap" stocks, and T-Mobile rightly fits into this category, highlighting its significant growth, stability, and impact in the telecommunications industry. As one of the leading wireless carriers in the U.S., T-Mobile exemplifies the strength and agility of a major telecom player, driven by its expanding 5G network, strong subscriber growth, and commitment to innovation and customer-centric services.
TMUS shares are trading 3.2% below their 52-week high of $205.28, which they hit on Aug. 28. TMUS has gained 11.7% over the past three months, significantly outperforming the broader Nasdaq Composite ($NASX), which has gained 1.4% over the same time frame.
In the longer term, TMUS is up 24% on a YTD basis, and the shares have gained 44.8% over the past 52 weeks. In comparison, the Nasdaq has gained 13.8% in 2024 and rallied 21.8% over the past year.
To confirm the recent bullish price trend, QCOM has been trading above its 50-day moving average since late July and its 200-day moving average since late October 2023.
On Jul. 31, TMUS shares gained 3.1% after the company reported its Q2 results. Its EPS came in at $2.49, beating the consensus estimates of $2.27. The company’s revenue was $19.77 billion, surpassing Wall Street expectations of $19.51 billion. Its postpaid net customer additions were 1.3 million during the quarter, crossing the 100 million postpaid customers' mark. Moreover, it reported a record-high adjusted free cash flow of $4.4 billion, up 54% year over year.
Highlighting the contrast in performance, TMUS' competitor, Verizon Communications Inc. (VZ), has underperformed both TMUS and the broader market indexes. VZ has gained 19% over the last 52 weeks.
Analysts are optimistic about TMUS' prospects, given the strong price performance. The stock has a consensus rating of "Strong Buy" from 22 analysts in coverage. The mean price target is $202.44, suggesting a premium of 1.8% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
