Substantial price performance of T-Mobile
In the previous part of the series, we looked at the scale of operations of T-Mobile (TMUS) and the other top US mobile players. The list included AT&T (T), Verizon (VZ), and Sprint (S). We also looked at earnings multiples of T-Mobile and some of its peers in the United States. Here, let’s look at the stock price performance of the company as of December 10, 2015.
As we can see in the chart above, the price performance of T-Mobile has been significant in the past 52 weeks as of December 10, 2015. During this period, T-Mobile’s price rose by a significant 43.6%.
Meanwhile, the rise in AT&T’s stock price over the comparable period was 4.7% as of the same date. However, the 52-week returns on Verizon and Sprint were negative. Verizon’s 52-week price fell by around 0.6%. Meanwhile, the same metric for Sprint was 3.2% as of the same date.
Analyst recommendations and target prices
Now let’s look at the expectations of Wall Street’s analysts for T-Mobile’s stock. In the current month, nine analysts gave a “strong buy” recommendation, 12 recommended a “buy,” six recommended a “hold,” and only one analyst gave T-Mobile’s stock an “underperform.”
Meanwhile, the median of target prices of Wall Street’s analysts for the stock was around $46.5 as of December 10, 2015. The range of these target prices was from $25 to $80. Please note that the median target price of the company was about 28% above the closing price of the stock as of the same date.
You may consider taking a diversified exposure to T-Mobile by investing in the PowerShares Dynamic Large Cap Growth Portfolio (PWB). The ETF had ~1.2% of its holdings in the US wireless telecom company at the end of November 2015.