Wireless phone and data services giant T-Mobile US has strong ratings and its stock has risen steadily and steeply since last June. On Monday, T-Mobile stock got an upgrade for its Relative Strength (RS) Rating, from 69 to 73.
T-Mobile stock closed at 124.92 on June 2. On Monday it was up fractionally for the day and about 30% higher since June. Although its stock got a Relative Strength Rating upgrade that puts it among the top 27% of all stocks for price performance, some of its other ratings shine even brighter.
TMUS stock has an 85 Composite Rating out of 99. And it boasts a 91 Earnings Per Share Rating. Additionally, T-Mobile stock has a C+ Accumulation/Distribution Rating on an A+ to E scale, showing that slightly more big funds are buying its shares than selling. It ranks No. 2 in the Telecom Services-Wireless industry group, and the group itself has an outstanding Group Relative Strength Rating of A on an A-to-E scale with A superb and E dismal.
Looking For Winning Stocks? Try This Simple Routine
T-Mobile stock traded in a fairly narrow range, consolidating for a little over a year starting in November 2022. It rose above that range in December and has continued to climb. It hasn't formed a clear pattern that could set it up for a breakout yet, so now may not be an ideal time to jump in. See if the stock goes on to form a chart pattern and break out.
Bellevue, Wash.-based T-Mobile US saw both earnings and sales growth rise last quarter. It reported a 19% year-over-year earnings increase to $1.83 per share, on a 1% gain in revenue to $20.5 billion.
Earnings growth was generally strong over the prior three periods, ranging from 28% to 64%, 6% and then 19% last quarter. The 1% rise in revenue marked a small turnaround for T-Mobile. Its revenue dipped 2%, 3% and 1% the prior three stanzas before the +1% gain last quarter. Watch for stronger sales growth for the current quarter.
T-Mobile stock earns the No. 2 rank among its peers in the Telecom Services-Wireless industry group, according to IBD Stock Checkup. Tiny Spok Holdings, with about $35 million sales per quarter, ranks No. 1. And regional wireless services company US Cellular, which operates in 21 states, is No. 3 among the group's highest-rated stocks.
When searching for the best stocks to buy and watch, its relative price strength vs. other stocks is a good indicator.
IBD's unique Relative Strength Rating measures market leadership by using a 1 (worst) to 99 (best) score that identifies how a stock's price performance over the last 52 weeks matched up against all other stocks.
History shows that the market's biggest winners typically have an 80 or better RS Rating as they launch their largest price moves. See if T-Mobile US can continue to rebound and clear that threshold.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
