Headquartered in Bellevue, Washington, T-Mobile US, Inc. (TMUS) is a prominent leader in the telecommunications industry. With a market cap of $279.5 billion, T-Mobile is committed to providing exceptional wireless experiences nationwide. Renowned for its innovative approach, T-Mobile delivers reliable 5G coverage, top-tier customer service, and a range of advanced mobile solutions that connect millions of customers across the U.S.
Shares of this leading wireless service provider have significantly outperformed the broader market over the past year. The stock has gained 63.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 35.7%. In 2024, TMUS stock is up 50.2%, compared to SPX’s 25.5% returns on a YTD basis.
Narrowing the focus, TMUS’ gains over the past 52 weeks easily overshadow the Communication Services Select Sector SPDR ETF Fund (XLC). The exchange-traded fund has gained about 42.3% over this period. Moreover, the stock’s returns on a YTD basis outshine the ETF’s 33.8% gains over the same time frame.
On Oct. 23, shares of T-Mobile surged over 4% after reporting strong Q3 results, underscoring its industry-leading growth. Service revenues rose to $16.7 billion, up 5% year over year, with postpaid service revenues growing 8% to $13.3 billion.
The company achieved a net income of $3.1 billion and EPS of $2.61, both climbing 43% year-over-year. Core adjusted EBITDA increased 9% to $8.2 billion. T-Mobile also set record highs with $6.1 billion in net cash from operating activities, up 16%, and $5.2 billion in adjusted free cash flow, a 29% increase.
For the current fiscal year, ending in December, analysts expect T-Mobile’s EPS to grow 32% to $9.15 on a diluted basis. Moreover, it beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 27 analysts covering TMUS stock, the consensus rating is a “Strong Buy.” That’s based on 19 “Strong Buy” ratings, three “Moderate Buys,” four “Holds,” and one “Strong Sell.”
This configuration has been almost consistent over the past month.
On Oct. 29, Morgan Stanley (MS) raised T-Mobile's price target from $209 to $239, maintaining an “Overweight” rating following strong Q3 results and a positive outlook.
The mean price target of $241.54 represents a marginal premium to TMUS’ current price levels. The Street-high price target of $271 suggests an upside potential of 12.5%.
