T-Mobile US Stock: Is TMUS Outperforming the Communication Services Sector?
With a market cap of $307.9 billion, T-Mobile US, Inc. (TMUS) is a provider of wireless communications services, including voice, messaging, and data, under its flagship brands, T-Mobile and Metro by T-Mobile and Mint Mobile. The Bellevue, Washington-based company offers wireless communications services primarily using its 4G Long Term Evolution (LTE) network and its 5G technology network.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and T-Mobile US definitely fits that description. The company offers high-speed Internet to the nation and affordable prepaid wireless plans for a wide range of devices.
However, the wireless carrier pulled back 1.4% from its 52-week high of $273.40, recorded in the last week. Shares of T-Mobile US have risen 9.5% in the last three months, delivering stronger returns than the Communication Services Select Sector SPDR ETF Fund’s (XLC) 4.2% rise.
In the longer term, shares of T-Mobile US soared 64.7% over the past 52 weeks, outperforming XLC's 29.7% return over the same time frame. Moreover, TMUS spiked 22.2% on a YTD basis, compared to XLC’s 5.4% gain.
TMUS stock has been trading mostly above its 50-day and 200-day moving averages since last year.
After beating Wall Street expectations with Q4 2024 earnings of $2.57 per share and record revenue of $21.9 billion, TMUS stock rose 6.3% on Jan. 29. The company reported 903,000 postpaid phone net additions and issued record-high guidance for 2025, projecting 5.5 million to 6 million postpaid net additions. Additionally, T-Mobile's robust $17.3 billion–$18 billion free cash flow outlook for 2025 and its ongoing $14 billion share repurchase program further fueled investor confidence.
In comparison with its rival, ATN International, Inc. (ATNI) lagged behind TMUS, gaining 2.8% on a YTD basis. In addition, ATN International has declined 48.4% over the past 52 weeks.
Despite TMUS’ outperformance relative to the broader sector, analysts are cautiously optimistic about its prospects. TMUS has a consensus rating of “Moderate Buy” from the 27 analysts covering the stock. As of writing, TMUS is trading above the mean price target of $258.86.
On the date of publication, Sohini Mondal 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.