Telecom stocks have been struggling due to fierce competition
Telecom stocks, meanwhile, haven’t seen similar returns compared to tech stocks. In this article, we’ll talk about the returns of the top four carriers. The telecom sector has seen fierce competition recently, which has squeezed the margins of the carriers and thus their returns.
T-Mobile (TMUS) has been the best-performing large-cap telecom stock in the trailing-one-year period. The company has returned 33.4% in that period. T-Mobile has seen decent growth in its customer base and has overtaken Sprint (S) as the third-biggest carrier in the United States. The company’s revenue has risen 10% YoY in the most recent quarter.
Sprint, Verizon, and AT&T stocks have been struggling
Sprint has returned 20.7% in the same period but is down 3% year-to-date. The carrier has seen declining subscriber growth. The company generated revenues of $8.2 billion in fiscal 1Q17 (quarter ended June 2017), rising by 1.8% YoY.
Verizon (VZ), the biggest carrier in the US, has fallen 5.3% in the last 12 months. The company has seen negative revenue growth. Revenues fell 2% YoY in the most recent quarter.
Meanwhile, AT&T (T) stock has fallen 6.3% in the last 12 months. The company announced last year that it will be acquiring Time Warner (TWX) in a massive $85 billion deal. In the most recent quarter, the carrier’s revenues fell 1.7% YoY.