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.
