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Investing in T-Mobile US, Inc.: A Smart Choice for Growth
Introduction
In this weekly post, we want to provide you with a thoughtful investing suggestion that could help you build a stronger portfolio. As we all know, stock investment can be a profitable endeavour, and today we're delighted to highlight a stock that we think offers a good chance for growth and financial success.
Name of the Stock, Headquarters, and Services
Today's spotlight is on T-Mobile US, Inc. (TMUS), a well-known American cellular network provider with offices in Bellevue, Washington, and Overland Park, Kansas. Under the names T-
Mobile and Metro by T-Mobile, T-Mobile US offers a wide variety of wireless voice and data services throughout the United States (T-Mobile, 2023). The business has established itself as a major participant in the telecommunications sector by acting as the host network for several mobile virtual network providers. As the third-largest wireless provider in the US with a history stretching back to 1994, T-Mobile served an astounding 113.6 million subscribers as of Q4 2022 (T-Mobile, 2022).
Why T-Mobile US is a Good Investment
For several convincing reasons, T-Mobile US stands out as a solid investment decision. First off, the business has strong financials, with a forecasted average annual EPS growth rate of +65.5% over the next five years and a current one-year EPS growth rate of +266.4% (Yahoo. finance, 2023). Additionally, T-Mobile has had sustained growth and profitability as evidenced by its three-year average annual revenue increase of +15.2%.
Even the stock's value indicators are intriguing. A potential undervaluation is indicated by the fact that the current P/E ratio of 45.4 is significantly lower than historical norms. Additionally,
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the stock appears to be trading at a favorable price about its projected growth trajectory, as indicated by the forward P/E ratio of 14.3 (Yahoo. finance, 2023).
Current Stock Price and Historical Performance
T-Mobile US, Inc.'s opening and closing prices are currently 137.08 and 138.34, respectively. The stock has shown tenacity and growth over the past year within a band of 124.92 - 154.38 (Yahoo. finance, 2023). Please see Figures 1 and 2 for screenshots of the day's graph and the year's graph, respectively, to visualize this.
Figure 1: Today’s Stock Graph
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Figure 2: One-year Company Stock
Focusing on the Big Picture
When evaluating stock investing, investors must maintain a long-term perspective. In the stock market, daily changes are unavoidable, but concentrating on immediate gains or losses might cause hasty decisions (Rappaport, 2014). Investors may more accurately evaluate a company's entire performance, growth trajectory, and fundamental strengths by focusing on the whole picture, which is particularly crucial in the case of T-Mobile US, Inc.
Conclusion
In conclusion, given its strong financial indicators, undervalued position, and steady growth, T-
Mobile US, Inc. stands out as a solid investment prospect. As your dependable investment consultants, we think that this stock has the potential to help you reach your long-term financial goals. We urge you to think about adding T-Mobile US, Inc. as a wise addition to your stock portfolio. In the realm of stock investment, remember that while daily market swings are interesting, what counts is the company's long-term success and room for expansion.
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References
Rappaport, A. (2014, August). Ten Ways to Create Shareholder Value
. Harvard Business Review. https://hbr.org/2006/09/ten-ways-to-create-shareholder-value
T-mobile. (2022). T-Mobile Achieves U.S. Telecom Industry First (Again): 100% Renewable Energy
. T-Mobile Newsroom. https://www.t-mobile.com/news/community/re100-
achievement
T-mobile. (2023). T-Mobile Delivers Industry-Leading Growth in Customers and Profitability in Q2 2023, Raises 2023 Guidance Again - T-Mobile Newsroom
. T-Mobile Newsroom. https://www.t-mobile.com/news/business/t-mobile-q2-2023-earnings
Yahoo. finance. (2023). T-Mobile US, Inc. (TMUS)
. https://finance.yahoo.com/quote/TMUS/
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