Should You Buy T-Mobile US Inc (TMUS) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
186.250
1 Day change
0.95%
52 Week Range
276.490
Analysis Updated At
2026/01/26
T-Mobile US Inc. (TMUS) is not a strong buy at the moment for a beginner investor with a long-term focus. The stock is facing heightened competition, declining financial metrics, and mixed sentiment from analysts and Congress trading data. While hedge funds are buying, the technical indicators are bearish, and the options data suggests a cautious trading sentiment. Given the user's preference for long-term investments and the current market conditions, holding off on purchasing TMUS is recommended until there are clearer signs of recovery or growth.
Technical Analysis
The technical indicators for TMUS are bearish. The MACD histogram is negative and contracting, the RSI is neutral at 33.397, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 183.08, with resistance at 198.887. There is no clear upward momentum, and the stock has a 50% chance of declining further in the short term.
Options Data
Bullish
Open Interest Put-Call Ratio
Bearish
Option Volume Put-Call Ratio
The options data shows a cautious sentiment, with a higher put-call volume ratio (1.13) indicating more bearish bets in the short term. Implied volatility is at 27.85, with an IV percentile of 71.6, suggesting elevated uncertainty.
Technical Summary
Sell
8
Buy
2
Positive Catalysts
Hedge funds are significantly increasing their buying activity, with a 691.88% increase over the last quarter. The company continues to expand its fixed wireless access broadband business and has potential exposure to the fiber broadband market.
Neutral/Negative Catalysts
T-Mobile faces heightened competition in the telecommunications industry, with worsening dynamics and aggressive pricing from competitors like Comcast and Verizon. Financial performance in Q3 2025 showed declining net income (-11.28% YoY) and EPS (-7.66% YoY). Congress trading data indicates more selling activity than buying, reflecting cautious sentiment. Analysts have been lowering price targets, citing competitive pressures and slowing growth.
Financial Performance
In Q3 2025, T-Mobile reported an 8.90% YoY increase in revenue to $21.96 billion. However, net income dropped by 11.28% YoY to $2.71 billion, and EPS decreased by 7.66% YoY to 2.41. Gross margin also slightly declined to 49.33% (-0.36% YoY). These metrics indicate pressure on profitability despite revenue growth.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts have been lowering their price targets for TMUS, reflecting concerns about heightened competition and slowing growth. Recent ratings include Bernstein lowering the target to $245 with a Market Perform rating and Scotiabank lowering the target to $270.50 with an Outperform rating. While some analysts maintain a Buy rating, the overall sentiment is cautious, with limited signs of relief in the competitive landscape.
Wall Street analysts forecast TMUS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TMUS is 265.42 USD with a low forecast of 220 USD and a high forecast of 310 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
Wall Street analysts forecast TMUS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TMUS is 265.42 USD with a low forecast of 220 USD and a high forecast of 310 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Buy
6 Hold
0 Sell
Moderate Buy
Current: 184.490
Low
220
Averages
265.42
High
310
Current: 184.490
Low
220
Averages
265.42
High
310
Wells Fargo
Overweight
downgrade
$260 -> $225
AI Analysis
2026-01-26
New
Reason
Wells Fargo
Price Target
$260 -> $225
AI Analysis
2026-01-26
New
downgrade
Overweight
Reason
Wells Fargo lowered the firm's price target on T-Mobile to $225 from $260 and keeps an Overweight rating on the shares. Discussing the wireless sector, the firm says it expects fundamentals to be better than feared in Q4, with upside to subscriber numbers, even if ongoing concerns around incremental competition are likely to weigh down sentiment, leading Wells to lower price targets across the board. T-Mobile remains the firm's top pick.
Bernstein
Market Perform
downgrade
$265 -> $245
2026-01-16
Reason
Bernstein
Price Target
$265 -> $245
2026-01-16
downgrade
Market Perform
Reason
Bernstein lowered the firm's price target on T-Mobile to $245 from $265 and keeps a Market Perform rating on the shares. The firm believes we are entering a new era of competition in the industry. Each quarterly update in 2025 reflected worsening competitive dynamics, erasing much of the Telco gains achieved in the first half of the year, while Cable companies continued to decline through the second half, Bernstein argues. This heightened competitive intensity is set to persist in 2026, with little sign of relief given recent strategic actions, it adds.
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