NASDAQ:TMUS
T-Mobile US (TMUS)
Financials 
Technical Analysis 
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Premium contentPremium contentTMUS is reasonably priced at 19X earnings. Growth looks good; EPS has gone from 99c in 2015 to an expected $10.02 next year. 2024 growth vs 2023 is expected at more than 40%. 2025 growth will not be that high but should still be quite decent. Debt is fairly high but cash flow is secure and growing. Certainly we would prefer it over the larger, slow growth incumbents in the sector. There is no dividend, however, as it focuses on growth. But we would be comfortable owning it.
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Premium contentAccording to Stockchaser Michael O'Reilly, TMUS checks off several boxes: has 113 million customers, is the only American standalone 5G mobile network, and has a deal with Amazon AWS (the #1 cloud service) to provide 5G to their customers. Also consider that TMUS took a leap forward on April 1, 2020 when it officially absorbed Sprint to add their 33.84 postpaid subscribers to T-Mobile's existing 47 million subs.
Premium contentWe reiterate TMUS, the second largest wireless operator in the US with over 113 million customers operating the country's sole stand-alone 5G network, as a TOP PICK. They just announced a deal with Amazon AWS to provide 5G services to customers. It trades at 2.6x book. It has been prudently using some cash reserves to retire debt and buy back shares. We recommend keeping the stop at $135, looking to achieve $180 -- upside potential over 20%. Yield 0%
(Analysts’ price target is $180.17)Premium content
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Our PAST TOP PICK with TMUS is progressing well. To remain disciplined, we recommend trailing up the stop (from $159) to $169 at this time.