Monday, July 15, 2024

Is T-Mobile’s stock a buy going into the big October event?

Drivers of TMUS Stock Gains and Bright Spots in Broadband Subscriber Growth

The impressive growth of free cash flow and a significant share buyback have been driving the recent gains in T-Mobile US (TMUS) stock. While the company’s market share gains in the wireless industry have slowed down compared to AT&T (T) and Verizon Communications (VZ), the growth in broadband subscribers is giving a new boost to the company.

In 2024 alone, T-Mobile stock has already seen an 11% increase and reached an all-time high of 182.67. Technical ratings for the stock continue to remain strong.

According to a recent report from Goldman Sachs, T-Mobile is well positioned to benefit from a more favorable competitive landscape in the U.S. wireless industry. The company is also expanding into consumer broadband using a mix of fixed wireless broadband and fiber, which is expected to sustain its growth trajectory.

Moreover, T-Mobile’s parent company, Deutsche Telekom, will be hosting a Capital Markets Day in October 2024 to provide long-term financial guidance. The company’s updated outlook on wireless broadband growth, targeting 7-8 million subscribers by 2025, is seen as a key driver for future success.

In addition to its strategic growth plans, T-Mobile has been actively engaged in deal-making activities. The acquisition of Mint Mobile, joint venture with Lumos, and the agreement to buy wireless assets of U.S. Cellular are all part of the company’s expansion strategy.

Looking ahead, T-Mobile is set to announce its second quarter earnings on July 31. Analysts are expecting updates on recent acquisitions, financial performance, and potential growth areas for the company.

With a strong focus on 5G technology, strategic acquisitions, and a growing subscriber base, T-Mobile is poised for continued success in the wireless and broadband market. Investors are eagerly watching to see how the company’s growth initiatives will translate into long-term shareholder value.

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