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T-Mobile Surges 53.5% in a Year: Reason to Buy the Stock?

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T-Mobile, US Inc. TMUS has gained 53.5% over the past year compared with the Wireless National industry’s growth of 38.1%. The stock has also outperformed the Zacks Computer & Technology sector and the S&P 500’s growth of 7.4% and 9.3%, respectively.

One-Year Price Performance

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Zacks Investment Research


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The company has outperformed its peer, Verizon Communications Inc. VZ, but underperformed relative to AT&T, Inc. T. Verizon has gained 11.8%, while AT&T has surged 63.9% during this period.

TMUS Rides on Portfolio Strength & Customer-Oriented Approach

T-Mobile boasts a leadership position in the 5G market. It is steadily deploying 5G with the mid-band 2.5 GHz spectrum from Sprint and plans to further accelerate 5G spectrum deployment in upcoming quarters. The 2.5 GHz spectrum provides high speed and comprehensive coverage with signals that go through walls and trees, unlike 5G networks that are controlled by the mmWave spectrum. This gives the un-carrier a competitive edge over AT&T and Verizon.

Moreover, the company is actively working to make its network infrastructure more resilient and eliminate network outages during extreme weather events such as hurricanes and wildfires. T-Mobile’s Self-Organizing Network (SON) utilizes AI with real time data to asses nearby cell sites, identify outages. Then it automatically adjusts the infrastructure to continue to provide reliable service during and after the disaster.
 
The company has integrated Dataminr’s AI-powered alert systems to expedite resource mobilization and swift response during extreme situations. T-Satellite brings direct connect satellite-based connectivity, allowing users to send texts regardless of carriers and receive alerts when cellular networks are disrupted. Advancing technology to not only improve everyday services but also create resilient network infrastructure for seamless connectivity in any condition underscores T-Mobile’s strong customer-focused business approach.

Such initiatives are driving customer engagement across T-Mobile’s network portfolio. The company is witnessing solid growth in postpaid customers over the past few quarters. TMUS recorded 1.3 million postpaid net customer additions and 424,000 net high-speed Internet additions. The company’s effort to update and optimize pricing plans as per evolving requirements is also driving customer additions. Its strong focus on network modernization, coverage, and capacity expansion and customer service has helped it to record healthy top-line growth over the past few years.