On August 23, T-Mobile (TMUS) stock closed at $76.48, which implies a fall of 4.3% since it announced its second-quarter earnings results on July 25.
T-Mobile’s stock performance
Currently, T-Mobile stock is trading at a discount of 10.3% to its 52-week high of $85.22. The stock is trading at a premium of 27.6% to its 52-week low of $59.96.
T-Mobile stock has delivered a strong return this year. The company has returned 20.2% year-to-date. T-Mobile stock has risen 66.4% in the last three years and 154.3% in the past five years. The company’s market cap is $65.4 billion.
Analysts’ recommendations on T-Mobile stock
Overall, analysts favor a “buy” rating for T-Mobile. Among the 21 analysts that cover T-Mobile, 85.7% recommended a “buy” rating, while 14.3% recommended a “hold” rating. None of the analysts recommended a “sell” rating. Currently, analysts have a 12-month target price of $88.53. As of August 23, the company was trading at a discount of 15.8% from analysts’ 12-month target price. The stock’s median target price is $90.00 as of the same date.
T-Mobile’s attractive valuation
T-Mobile stock is trading at 19.1x its 2019 estimated EPS of $4.00 and at 15.8x its 2020 estimated EPS of $4.83. Both of the estimates look attractive based on the company’s projected EPS growth rates of 19.2% for 2019 and 20.8% for 2020.
Based on the closing price on August 23, T-Mobile stock was trading 2.0% below its 20-day moving average of $78.03, 1.2% below its 50-day moving average of $77.44, and 0.9% above its 100-day moving average of $75.82. On the upside, the company’s immediate key resistance lies near $77.78, while $75.65 could act as an immediate key support level on a daily basis.
T-Mobile’s 14-day relative strength index score was 44, which suggests investors are neutral towards the stock.
In the trading session on August 23, T-Mobile stock closed near its lower Bollinger Band level of $74.98. The value suggests that the stock is oversold. Investors could take the value as a “buy” signal.
Last month, the Department of Justice officially approved the proposed merger agreement between T-Mobile and Sprint (S). Please read Why Critics Want Public Review of T-Mobile–Sprint Merger to learn about the merger deal.
In the second quarter, T-Mobile posted an adjusted EPS of $1.09, which beat analysts’ estimate of $0.97. The company’s revenues were $10.98 billion, which missed analysts’ estimate of $11.13 billion. To learn more about T-Mobile’s second-quarter performance, read T-Mobile: A Look at Q2 Results as It Awaits Merger Approval.
On August 23, Sprint stock fell 1.89% and closed at $6.74, while AT&T stock fell 1.61% to $34.82.