Verizon Rival Sporting Notable 2021 Gains

However, TMUS is 17% off its July peak

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T-Mobile US, Inc. (NASDAQ:TMUS) is an American wireless network operator and the second-largest wireless carrier in the United States. TMUS provides wireless voice and data services in the United States under the T-Mobile, Sprint, and Metro by T-Mobile brands. T-Mobile also serve as the host network for many mobile virtual network operators. This afternoon, TMUS was last seen trading down 0.3% at $124.18.

T-Mobile stock has increased approximately 28% in price year-over-year and TMUS is up 15% since bottoming at a 52-week low of $107.56 at the end of last October. TMUS has tacked on 17% year-to-date, but is off 17% from its record-high of $150.20, which it reached in mid-July.

On the earnings front, T-Mobile has beat earnings expectations on all four of its most recent earnings reports. For Q3 of 2020, TMUS beat analysts’ estimates by a margin of $0.57, reporting an EPS of $1.00. For Q4 of 2020, T-Mobile's EPS decreased to $0.60, still beating expectations by a margin of $0.09. For Q1 of 2021, TMUS posted an increase in earnings, rising to $0.74 per share. The wireless network company also beat estimates by a margin of $0.17. For Q2 of 2021, T-Mobile reported an EPS of $0.78 and beat expectations by a margin of $0.25.

T-Mobile lacks stability with its fundamentals. For example, T-Mobile's balance sheet is far from ideal, holding just $7.8 billion in cash and a whopping $110.7 billion in total debt. TMUS also has a high valuation, with a price-earnings ratio coming in at 39.75 and its forward price-earnings ratio at 34.97.

Moreover, T-Mobile stock remains an intriguing option for growth investors. Despite TMUS' massive market cap of $155 billion, the stock has a solid price-sales ratio of 1.98. In general, T-Mobile stock offers a greater risk than most large caps but also carries more potential upside.

It's worth noting that the Verizon (VZ) rival looks ripe for a round of bear notes. Heading into today, 13 of the 14 covering analyst sport a "buy" or better rating on the equity. 

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