
NASDAQ:TMUS
This summary was created by AI, based on 7 opinions in the last 12 months.
T-Mobile US (TMUS-Q) has faced a challenging year, with shares experiencing a notable decline, prompting investors to seek answers in the upcoming earnings report. Concerns arise regarding competition, particularly from Elon Musk's satellite initiatives potentially impacting TMUS' margins. Despite past momentum in defensive sectors and a recent surge in high-speed internet service demand, TMUS has seen mixed performance, with some experts recommending a cautious approach while others highlight its potential for recovery if market conditions shift. The company is projected to grow earnings significantly by 2026, trading at a relatively attractive PE ratio, which indicates it offers value amidst its fluctuating performance.
TMUS 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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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.