T-Mobile US, Inc. (TMUS) is a national wireless service provider that offers mobile voice, messaging, and data services under the T-Mobile, Metro by T-Mobile, and Sprint brands. Valued at a market cap of $282.1 billion, the company is based in Washington and provides services for postpaid, prepaid, and wholesale customers and is extensively deploying 5G and 4G LTE networks.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and T-Mobile fits right into that category. Its market cap exceeds this threshold, reflecting its substantial size, stability, and influence in the telecom sector. T-Mobile’s bold investments in network expansion, spectrum acquisition, and customer growth have solidified its position as a trailblazer in U.S. telecom, powered by a cutting-edge 5G network and a flair for innovation.
TMUS stock is just 1.7% below its 52-week high of $248.15, which it touched recently on Nov. 27. Shares of T-Mobile gained 23.7% over the past three months, outperforming the Dow Jones Industrials Average’s ($DOWI) 9.8% gains during the same time frame.
T-Mobile's long-term outlook appears increasingly promising. TMUS gained 52.2% on a YTD basis and has climbed 58.4% over the past 52 weeks. In comparison, $DOWI rose 18.8% this year and has surged 23.9% over the past year, falling short of T-Mobile's impressive performance.
To confirm its bullish trajectory, T-Mobile has been consistently trading above its 200-day moving average since the past year and also over the 50-day moving average since the end of July.
T-Mobile's standout stock performance stems from its advanced 5G network, strong customer retention, industry-leading postpaid growth, and successful home internet expansion. Thanks to its aggressive growth strategy and "un-carrier" approach, T-Mobile continues to outperform its peers by posting industry-leading metrics. The potential acquisition of U.S. Cellular could further boost its growth.
On Oct. 23, shares of T-Mobile surged over 4% after reporting strong Q3 results. The company reported $16.7 billion in service revenue (up 5% YoY), $3.1 billion in net income, up 43% from the same quarter last year, and EPS of $2.61. Core adjusted EBITDA grew 9% to $8.2 billion, while adjusted free cash flow surged 29% to $5.2 billion, supported by record-low churn and robust postpaid service revenue growth.
Highlighting its strong long-term performance, T-Mobile outpaces its key competitor, Verizon Communications Inc. (VZ), whose shares have risen 10.8% over the past year and 12.9% year-to-date.
Despite T-Mobile’s mixed price action, analysts are highly optimistic about the stock’s future. The stock has a consensus rating of “Strong Buy” from 27 analysts covering it, and the mean price target of $244.94 represents a marginal premium to current price levels.
On the date of publication, Kritika Sarmah 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. More news from BarchartThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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