With a market cap of $307.9 billion, T-Mobile US, Inc. (TMUS) is a provider of wireless communications services, including voice, messaging, and data, under its flagship brands, T-Mobile and Metro by T-Mobile and Mint Mobile. The Bellevue, Washington-based company offers wireless communications services primarily using its 4G Long Term Evolution (LTE) network and its 5G technology network.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and T-Mobile US definitely fits that description. The company offers high-speed Internet to the nation and affordable prepaid wireless plans for a wide range of devices.
However, the wireless carrier pulled back 1.4% from its 52-week high of $273.40, recorded in the last week. Shares of T-Mobile US have risen 9.5% in the last three months, delivering stronger returns than the Communication Services Select Sector SPDR ETF Fund’s (XLC) 4.2% rise.
In the longer term, shares of T-Mobile US soared 64.7% over the past 52 weeks, outperforming XLC's 29.7% return over the same time frame. Moreover, TMUS spiked 22.2% on a YTD basis, compared to XLC’s 5.4% gain.
TMUS stock has been trading mostly above its 50-day and 200-day moving averages since last year.
After beating Wall Street expectations with Q4 2024 earnings of $2.57 per share and record revenue of $21.9 billion, TMUS stock rose 6.3% on Jan. 29. The company reported 903,000 postpaid phone net additions and issued record-high guidance for 2025, projecting 5.5 million to 6 million postpaid net additions. Additionally, T-Mobile's robust $17.3 billion–$18 billion free cash flow outlook for 2025 and its ongoing $14 billion share repurchase program further fueled investor confidence.
In comparison with its rival, ATN International, Inc. (ATNI) lagged behind TMUS, gaining 2.8% on a YTD basis. In addition, ATN International has declined 48.4% over the past 52 weeks.
Despite TMUS’ outperformance relative to the broader sector, analysts are cautiously optimistic about its prospects. TMUS has a consensus rating of “Moderate Buy” from the 27 analysts covering the stock. As of writing, TMUS is trading above the mean price target of $258.86.
