Stock Price & Analysis

Analysis and Insights

Fundamental Analysis:

T-Mobile US, Inc. (TMUS) has shown strong fundamental performance, receiving a top rating of 100% from Validea's Twin Momentum Investor model. This indicates robust price momentum and improving fundamentals, making it a favorable choice in the Communications Services industry.

The company has also been recommended by Goldman Sachs as part of its "Domestic Sales" basket, highlighting its resilience to tariff impacts due to its focus on domestic sales. Additionally, TMUS recently agreed to sell its 800 MHz spectrum portfolio, expected to close by April 2025, providing incremental capital benefits.

Technical Analysis:

The stock's technical indicators show mixed signals. The RSI values (36.41 for RSI_6, 45.94 for RSI_12, and 47.91 for RSI_14) suggest that TMUS is in a bearish trend but not oversold. The MACD is positive, indicating potential bullish momentum.

Fibonacci Levels:

The Fibonacci levels show resistance at 268.43 and support at 250.60. These levels are crucial for determining potential trend reversals.

Conclusion:

Given the strong fundamental performance and positive news, T-Mobile US, Inc. (TMUS) is a good buy. The technical analysis suggests caution but overall supports a bullish outlook.

Price Prediction for T-Mobile US (TMUS) Stock in 2025

Based on current analyst consensus and recent performance, T-Mobile US (TMUS) stock is predicted to reach $265 by the end of 2025. This forecast is supported by strong Q4 2024 earnings, subscriber growth, and strategic initiatives such as spectrum sales. However, elevated valuations may limit upside potential.

The S1 support level for TMUS Stock is $256.11 ,The R1 resistant level for TMUS Stock is $268.72.

As of the end of day on 2025-04-01, the price of TMUS Stock was $268.5.

The target price for TMUS Stock according to analyst rating is 266.22, with the highest price target at 290.00 and the lowest at 235.00. Analysts have a Moderate Buy rating on TMUS Stock overall.

The market cap of TMUS is $306.6B.

Analysis and Insights

Valuation Metrics

T-Mobile US Inc (TMUS) currently exhibits elevated valuation metrics compared to industry peers. The stock's price-to-earnings (P/E) ratio ranges between 22.23 and 23.54, which is higher than the average for the telecommunications sector. Additionally, the EV/EBITDA ratio of 8.61 to 9.96 indicates a premium valuation, while the price-to-sales (P/S) ratio of 2.48 to 3.18 and price-to-book (P/B) ratio of 3.1 to 4.09 further suggest that the stock may be overvalued.

Financial Performance

T-Mobile has demonstrated strong financial performance, with total revenue growing steadily from $19.54 billion in Q1 2024 to $21.87 billion in Q4 2024. Net income and gross profit have also shown consistent improvement, reflecting robust operational efficiency. The company's gross margin has remained stable at around 49%, while the net margin has improved to 13.57% to 17.93%. However, the debt-to-equity ratio of 135.95% to 136.47% raises concerns about leverage.

Analyst Sentiment and News

Recent analyst reports show mixed sentiment. While JP Morgan and Tigress Financial have raised their price targets, citing strong subscriber growth and AI-driven initiatives, other firms like Citigroup and Wells Fargo have downgraded the stock due to its elevated valuation. Additionally, TMUS has been highlighted as a domestic sales stock by Goldman Sachs, which could provide insulation from tariff risks.

Technical Analysis

The stock's price trend shows a bullish pattern, with recent highs near $258. However, the current price of $255.99 is approaching key resistance levels, suggesting potential short-term volatility. The relative strength index (RSI) indicates that the stock may be overbought, which could lead to a pullback.

Conclusion

While T-Mobile US Inc (TMUS) has strong growth prospects and improving fundamentals, its current valuation metrics and analyst downgrades suggest that the stock may be overvalued. Investors should carefully consider whether the company's growth trajectory justifies its premium valuation before making investment decisions.

T-Mobile US, Inc. is a provider of mobile communications services, including voice, messaging and data, under its flagship brands, T-Mobile and Metro by T-Mobile in the United States, Puerto Rico and the United States Virgin Islands. The Company provides mobile communications services primarily using its 4G Long Term Evolution (LTE) network and its 5G technology network. It also offers a selection of wireless devices, including handsets, tablets and other mobile communication devices, and accessories for sale, as well as financing through equipment installment plans (EIP). The Company’s primary service plan offering is Go5G Plus, which includes unlimited talk, text and data on its network, 5G access at no extra cost, scam protection features and more. In addition to its mobile wireless communications services, the Company also offers high speed Internet, which includes a fixed wireless product that utilizes the excess capacity of its nationwide 5G network.

T-Mobile US (TMUS) stock is predicted to reach $350-$400 by 2030, driven by its strong 5G network expansion and integration of Sprint. The company's focus on improving customer experience and competitive pricing positions it well for long-term growth. However, risks like regulatory changes and intense competition could impact the stock's trajectory.

TMUS has a total of 67000 employees.