Washington-based 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. With a market cap of $211.7 billion, the company provides services for postpaid, prepaid, and wholesale customers and is extensively deploying 5G and 4G LTE networks. T-Mobile is a prominent player in the fiercely competitive telecom industry, where it goes head-to-head with its rival Verizon Communications Inc. (VZ).
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. The wireless behemoth has invested heavily over the past decade to expand its customer base, construct its network, acquire wireless spectrum licenses, and promote its services.
TMUS stock is just 1.1% below its 52-week high of $182.67, which it touched recently on June 6. Shares of T-Mobile gained 10.2% over the past three months, outshining the broader S&P 500 Index’s ($SPX) 4.6% returns over the same time frame.
In the longer term, TMUS is up 12.7% on a YTD basis, and the stock has soared 37.6% over the past 52 weeks. By contrast, SPX is up 12.4% in 2024 and 24.7% over the past year, underperforming T-Mobile’s performance.
To confirm its bullish trajectory, T-Mobile has been consistently trading above its 200-day moving average since November, and also the 50-day moving average with some fluctuations.
T-Mobile's impressive stock performance over the past year can be attributed to its strong customer retention rate and 5G network buildout, which is ahead of its competitors. Besides, T-Mobile's industry-leading postpaid net customer additions and successful expansion into home internet have been key drivers of its growth.
On May 28, TMUS made waves with its $4.4 billion acquisition of a majority stake in rival U.S. Cellular (USM). This included gaining USM's mobile phone customer base, retail network, and a portion of its wireless spectrum. The move aims to enhance TMUS’ internet coverage in rural America by leveraging USM’s spectrum assets. Following the announcement, TMUS stock saw a slight surge.
To emphasize the stock’s robust performance over the longer term, it is worth noting that T-Mobile outshines its top rival, Verizon. Shares of Verizon have surged 13.9% over the past 52 weeks and 7.2% on a YTD basis.
Despite T-Mobile’s mixed price action, analysts are optimistic about the stock’s future. The stock has a consensus rating of “Strong Buy” from 19 analysts covering it, and the mean price target of $187.24 is a premium of 3.6% to current 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.
