TMUS Should I Buy
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T-Mobile US Inc (TMUS) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The stock shows strong hedge fund buying, positive sentiment from Congress trading, and a solid technical trend. Despite some financial challenges in Q4 2025, the company's growth outlook for 2027 remains robust, supported by strategic capital enhancements.
The MACD is positive and expanding (2.63), indicating bullish momentum. RSI is at 84.346, signaling the stock is overbought, but this could be indicative of strong buying pressure. The stock is trading near its resistance level (R1: 215.895), with potential upside to R2: 223.612. Moving averages are converging, which supports a continuation of the current trend.
Hedge funds have significantly increased buying activity (691.88% over the last quarter).
Congress members have made recent purchases, indicating confidence in the stock.
T-Mobile raised its adjusted EBITDA forecast for 2027 to $40-$41 billion.
Positive analyst sentiment, with multiple firms maintaining Buy or Overweight ratings and price targets above the current price.
Q4 2025 financials showed a decline in Net Income (-29.45% YoY) and EPS (-26.46% YoY).
Competitive pressures in the telecom industry are expected to persist in 2026, as noted by analysts.
Elevated RSI indicates potential short-term overbought conditions.
In Q4 2025, revenue increased by 11.26% YoY to $24.33 billion, showing strong top-line growth. However, Net Income dropped by 29.45% YoY to $2.1 billion, and EPS fell by 26.46% YoY to 1.89, reflecting margin pressures. Gross Margin also declined to 42.48%, down 6.51% YoY.
Analysts maintain a generally positive outlook on TMUS. Recent updates include price target adjustments ranging from $220 to $266, with most firms maintaining Buy or Overweight ratings. Analysts acknowledge competitive challenges but highlight T-Mobile's strong market position and growth potential in fixed wireless access and broadband.
