T-Mobile generates nearly $19 billion in free cash flow yet its stock sits near a 52-week low, battered by SpaceX satellite rumors and a surprise post-earnings selloff. Whether Oct. 28 earnings restore confidence or deepen the rout depends on two…
T-Mobile (NASDAQ:TMUS | TMUS Price Prediction) reports third-quarter results on Oct. 28 with shares at $146.54, down 26.25% year to date. The company generates a lot of cash. This report shows whether that cash can steady a falling stock.
Record Margins, Shrinking Share Price
Last quarter delivered revenue of $22.79B, up 7.8%, and EPS of $2.99. Core Adjusted EBITDA rose 12% to $9.54B, with margin expanding to 50.2%. Management raised the Adjusted Free Cash Flow outlook to $18.4B to $18.8B and increased the 2026 shareholder return authorization to $18.2B.
Shares still fell 10.75% on earnings day. Then on Friday they slipped 7.71% after reports that SpaceX is holding cell tower talks for Starlink Mobile (Forbes). That follows SpaceX’s $2.9 billion purchase of Grain Management’s 800MHz spectrum. The stock now trades near its 52-week low of $146.32 at about 18x forward earnings.
Wall Street Expects Double-Digit EPS Growth
Metric
Consensus
Year-Ago Actual
Implied YoY Growth
Q3 2026 EPS
$2.9121
$2.41
20.8%
Q3 2026 Revenue
$23.14B
$21.957B
5.4%
FY 2026 EPS
$10.9535
$9.72
12.7%
FY 2026 Revenue
$94.33B
$88.31B
6.8%
Churn, Pricing and the Starlink Question
Management already lowered the bar for Q3 account growth. It guided to about 250,000 postpaid net account additions, down from 277,000 in Q2, because a rate-plan update should temporarily raise account churn. Postpaid phone churn will be my main focus. It was 0.85% in Q2 versus 0.89% a year ago.
The other side of that trade is pricing. Postpaid ARPA reached $152.91, and the CFO said full-year growth should land “more towards the 3% ARPA growth”. Management also targeted Q3 service revenue of about $19.3 billion and Core Adjusted EBITDA near $9.4 billion, up 8%.
Broadband needs another strong quarter after Q2 net additions in the upper 400,000 range. The company is still aiming for 15 million fixed wireless customers by 2030.
Pay attention to how leadership addresses SpaceX. In July, management called direct-to-device satellite a complementary, table-stakes service that made up for 0.0002% of network usage. That was before SpaceX started talking to tower owners. Updated comments on that threat, plus how management balances buybacks against spectrum auctions in 2027 and 2028, could move the stock as much as the headline numbers.
Cash Has to Outrun the Fear
T-Mobile carries $86.9B in debt and trades at a forward multiple that has compressed sharply over the past year. Steady free cash flow is the strongest answer it has to investors worried about saturation and satellites. If management confirms the $18.4B to $18.8B cash target and keeps churn under control, the selloff starts to look overdone. If it can’t, Starlink fears will keep weighing on the stock.
Contact [email protected] for any questions or corrections.
There were some big moves in telecommunications stocks on Friday. On one hand, shares of cell tower owners Crown Castle (CCI +9.06%) and American Tower (AMT +4.08%) soared, with shares up by about 9% and 4%, respectively, as of midday. On the other hand, the three largest wireless carriers plunged, with Verizon (VZ -1.20%), AT&T (T -7.96%), and T-Mobile (TMUS -7.71%) all deep in the red.
Both moves are due to one company, SpaceX (SPCX +1.89%). On Thursday evening, Bloomberg reported that SpaceX is in talks to secure at least 80,000 cell sites across the United States as it aims to become the fourth nationwide wireless carrier. For context, 80,000 sites would represent about half of all the purpose-built cell towers in the U.S., so it would be a pretty big move.
Image source: Getty Images.
This is the second time in October that SpaceX has sent shockwaves through the telecom industry. First, on Oct. 9, SpaceX agreed to buy $8 billion in low-frequency wireless spectrum, and telecom stocks plunged. So, will SpaceX truly boost the tower companies and cost the telecom leaders money?
Why are the tower companies soaring?First, a little context on how the cell tower business works. The owner builds a tower and then rents space on it to wireless carriers, typically under long-term leases. Next time you drive by a cell tower, take a look at the top. You'll probably see several rings of transmission equipment, and each of those represents a tenant. Since the tower is already standing, adding tenants produces extra revenue with very little additional cost.
CCI Crown Castle$85.97+$7.14 (+9.06%)
NYSE · As of 4:00 PM ET 10/23/26
Ever since Sprint was acquired by T-Mobile, the tower industry has essentially had three wireless customers. The majority of Crown Castle's rent comes from AT&T, Verizon, and T-Mobile. A well-capitalized fourth player would mean more tenants per tower.
This is also a notable expansion of SpaceX's plans. Although the company has made its telecom network ambitions known for some time, as recently as August, management described its network as small cells mounted on rooftops (not traditional towers). But without getting too technical, the low-band spectrum it bought makes large towers far more useful, so it makes sense to add them to the plan.
Of course, this isn't the first time a "fourth carrier" has emerged. Just a few years ago, Dish Network signed long-term tower leases to build its own 5G network. To make a long story short, Dish's parent company sold most of its spectrum in 2025 and began shutting down the network. Of course, SpaceX is a far more deep-pocketed tenant and could easily afford to build a nationwide network.
Should investors forget about the carriers?SpaceX is certainly a threat to the big three wireless carriers, but the recent sell-off appears a bit overdone. After all, SpaceX would be starting with no wireless customers at all, it holds less spectrum than any of the others, and its service isn't expected to launch commercially until late 2027. And building a competitive network would be a multiyear process at a minimum.
Let's be clear. SpaceX could certainly pressure the three major wireless carriers over time, but this isn't exactly a death sentence for them either. All have existed in the past with a fourth competitor (Sprint), and pricing power hasn't changed that much since the number dropped to three.
The bottom lineIf you're thinking about buying tower owners as a momentum play or telecoms at a discount, it might be a smart idea to be patient. For one thing, although Crown Castle was specifically mentioned as a company SpaceX was in talks with, there isn't a signed contract or any official management acknowledgment yet. And the telecom sell-off may be overdone, as all that is happening right now is that a potential competitor (who would be starting from scratch) is negotiating with landlords.
In a nutshell, the market is pricing in a deal that hasn't happened yet, and the reaction on both the tower owner and wireless carrier side may be a bit overdone. I'm keeping an eye on some of the stocks involved, but I'm waiting for further official developments before making any moves.
SpaceX is quietly assembling every piece it needs to become a fourth national wireless carrier, and the stocks of the three companies that would lose the most are already reacting.
A report that SpaceX (NASDAQ:SPCX | SPCX Price Prediction) wants access to 80,000 U.S. cell sites is hitting every major national wireless carrier at once. Shares of T-Mobile (NASDAQ:TMUS) fell 5% to $150.74 during morning trading, a sign of how directly the SpaceX threat lands on its wireless business.
Meanwhile, AT&T (NYSE:T) stock is down 4% to $21.79, a smaller decline that still tracks T-Mobile’s slide. Verizon Communications (NYSE:VZ) stock is trading at $43.70, down 3%, the most resilient of the national carriers.
Losses in the carriers are weighing on the sector fund that holds each of them. The Communication Services Select Sector SPDR ETF (NYSEARCA:XLC) is down 1% to $105.94; for broad-market context, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.5% to $759.90.
Bloomberg Report Puts a Fourth Carrier in Play
Bloomberg reported, citing people familiar with the matter, that SpaceX is in talks with at least one major cell tower owner to secure access to a large network of U.S. cell sites. Such a deal would move SpaceX a step closer to building a fourth nationwide wireless carrier to take on AT&T, Verizon and T-Mobile in their home market. Starlink already serves over 13.6 million consumer subscribers worldwide, giving SpaceX an existing customer base to build from.
SpaceX laid the groundwork earlier this month by agreeing to acquire nationwide 800 MHz spectrum licenses to advance its Starlink Mobile strategy. When that agreement emerged, AT&T, T-Mobile and Verizon shares landed among the S&P 500’s top decliners. The tower talks would fill a separate gap, pairing that spectrum with the ground infrastructure a terrestrial carrier needs.
(we broke down why the tower owners come out ahead no matter which carrier wins this fight in a free report: SpaceX Is Coming for the Phone Companies, but the Tower Owners Win Either Way)
Why AT&T, Verizon and T-Mobile Are Falling Together
National networks at AT&T, Verizon and T-Mobile run on leased tower space, and each carrier makes recurring revenue from phone plans. Starlink delivers connectivity from satellites in orbit, so tower access would give SpaceX the ground-level footprint that space-based service lacks on its own. Adding towers to satellites and spectrum points to a fourth national competitor, which is why the three stocks are moving as a block.
A new nationwide rival would chase the same subscribers that AT&T, Verizon and T-Mobile already serve. That pressure on pricing and churn forms the bear case. Scale anchors the bull case, since AT&T runs its low-band spectrum on indoor building systems in high rises, hospitals and stadiums as well as on macro sites, a reach a newcomer would need years to duplicate.
AT&T CEO John Stankey has downplayed the spectrum threat, saying, “I wouldn’t over rotate on what I would call one carrier of low band spectrum.” Verizon CEO Dan Schulman has argued that satellites face hard limits in dense markets, stating, “It is basically not possible because of physics, not because of execution but because of physics for satellite to effectively compete against the terrestrial network in either mobility or broadband in urban and suburban geographies.” Tower access is exactly the piece that would help SpaceX work around that physical constraint.
T-Mobile’s position carries a twist, since the company already has a direct-to-cell partnership with Starlink. Chief executive Srini Gopalan has described direct-to-cell as “a technology that, in many ways, we worked with Starlink to invent,” and he’s also labeled it “a complementary category.” Those existing ties haven’t spared T-Mobile stock from the steepest drop in the sector.
Signed Tower Leases Would Raise the Stakes for Carriers
The next test for AT&T, Verizon and T-Mobile is whether SpaceX turns the talks into signed tower leases. A finished agreement would give SpaceX a ground network to pair with its satellites and spectrum, strengthening its case as a fourth carrier. Whether the Communication Services Select Sector SPDR ETF keeps trailing the SPDR S&P 500 ETF Trust is worth watching as the carriers digest the report.
SpaceX expects its spectrum purchase to close in the first half of 2027, giving AT&T, Verizon and T-Mobile a defined window before that piece is in place. Position sizes should stay modest until the outcome of SpaceX’s tower talks resolves.
Contact [email protected] for any questions or corrections.
Wall Street analysts expect T-Mobile (TMUS - Free Report) to post quarterly earnings of $2.86 per share in its upcoming report, which indicates a year-over-year increase of 10.4%. Revenues are expected to be $23.31 billion, up 6.2% from the year-ago quarter.
Over the last 30 days, there has been an upward revision of 0.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Bearing this in mind, let's now explore the average estimates of specific T-Mobile metrics that are commonly monitored and projected by Wall Street analysts.
The average prediction of analysts places 'Revenues- Total service revenues' at $19.32 billion. The estimate indicates a change of +5.9% from the prior-year quarter.
The combined assessment of analysts suggests that 'Revenues- Equipment revenues' will likely reach $3.70 billion. The estimate indicates a change of +6.9% from the prior-year quarter.
Analysts' assessment points toward 'Revenues- Other revenues' reaching $246.39 million. The estimate indicates a year-over-year change of -1.8%.
Analysts predict that the 'Revenues- Service revenues- Prepaid revenues' will reach $2.49 billion. The estimate indicates a change of -5.3% from the prior-year quarter.
Analysts expect 'Revenues- Wholesale and other service revenues' to come in at $727.27 million. The estimate suggests a change of -0.9% year over year.
Analysts forecast 'Revenues- Service revenues- Postpaid revenues' to reach $16.10 billion. The estimate suggests a change of +8.2% year over year.
According to the collective judgment of analysts, 'Total postpaid accounts' should come in at 34.95 million. Compared to the present estimate, the company reported 33.98 million in the same quarter last year.
The consensus estimate for 'Postpaid ARPA' stands at $154.16 . Compared to the present estimate, the company reported $149.44 in the same quarter last year.
View all Key Company Metrics for T-Mobile here>>>
Over the past month, T-Mobile shares have recorded returns of -4% versus the Zacks S&P 500 composite's -1.2% change. Based on its Zacks Rank #3 (Hold), TMUS will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
T-Mobile US (TMUS -5.08%) stock fell 5% through 11:15 a.m. Friday as investors panicked over a new report from Bloomberg:
Space Exploration Technologies (SPCX +1.66%) -- already the leading player in satellite-based communications -- is angling to lease 80,000 cellphone towers on the ground, and plans to build a fourth major mobile telecommunications company to compete with T-Mobile, Verizon, and AT&T.
Image source: Getty Images.
What's Elon Musk up to this week?You've heard the first part of this story already. Two weeks ago, SpaceX announced it's paying $8 billion to buy "up to 14 megahertz of paired spectrum in the 800 MHz band" from private equity firm Grain Management (which sounds like an agricultural concern, but apparently isn't). SpaceX predicted this purchase would "pave the way for Starlink Mobile to become a major mobile carrier in the U.S."
Now, SpaceX is taking the next logical step, leasing cellphone towers to bolster its telecom presence on the ground. Assuming the rumors are true, these towers will supplement the 15,000 direct-to-cell Starlink satellites that SpaceX is asking the FCC to let it launch. Once complete, SpaceX will have a robust ground game to cover cell calls in metropolitan areas, plus a globe-spanning satellite constellation to eliminate dead zones and give its network global reach.
TMUS T-Mobile US$150.72-$8.07 (-5.08%)
NASDAQ · As of 11:41 AM ET 10/23/26
What it means for SpaceX -- and for T-MobileIt's pretty clear why SpaceX is doing this. Judging from the numbers we saw in its most recent earnings report, SpaceX is earning 45% operating profit margins from its Starlink "Connectivity" business, versus less than a 6% margin in artificial intelligence -- and negative profits in space launch.
It makes sense SpaceX would double down on the business that's working best for it.
The bad news for T-Mobile: Its operating margins are only 22% today. With new competition from SpaceX, you can expect T-Mobile's margins to fall even further.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy.
Key Takeaways TMUS Q3 2026 revenues are expected to rise on subscriber additions, broadband adoption and wireless demand.Device promotions and zero upfront costs may boost switching, upgrades and recurring revenues.Revenues are projected at $23.31B and adjusted EPS at $2.86, but higher costs may pressure profitability.
T-Mobile US, Inc. (TMUS - Free Report) is set to report third-quarter 2026 results on Oct. 28, after the closing bell. It pulled off a trailing four-quarter earnings surprise of 17.3% on average, beating estimates on all previous occasions.
The wireless service provider is expected to witness year-over-year revenue growth, driven by subscriber additions, higher broadband adoption and strong demand for wireless services. However, higher promotional spending, intense competition and rising operating costs might have weighed on overall performance.
Factors at PlayDuring the quarter, T-Mobile strengthened its customer acquisition strategy by eliminating upfront costs for eligible customers, addressing a major barrier to switching wireless providers. The initiative is expected to have supported third-quarter 2026 revenues by attracting new subscribers, encouraging carrier switching and increasing adoption of its wireless plans.
T-Mobile's “Get iPhone 18 Pro on Us” promotion is likely to have contributed to revenue growth in the quarter under review. The offer might have attracted new customers, encouraged existing subscribers to upgrade their devices and increased demand for postpaid plans, boosting subscriber additions and recurring service revenues.
During the to-be-reported quarter, T-Mobile also promoted the Google Pixel 11 Pro XL and Samsung's new Galaxy foldable smartphones through attractive device offers. These promotions might have encouraged smartphone upgrades, attracted new wireless customers and increased device sales across its retail and online channels.
Despite these growth opportunities, T-Mobile's September earnings could have been affected by higher promotional spending, device subsidies and customer acquisition costs amid strong competition. Continued investments in 5G networks and broadband expansion might also have increased operating expenses and depreciation, limiting profitability.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $23.31 billion, indicating an improvement from the year-ago quarter’s reported figure of $21.96 billion. The consensus estimate for adjusted earnings per share is pegged at $2.86, implying growth from $2.59 reported a year ago.
Earnings WhispersOur proven model does not conclusively predict an earnings beat for T-Mobile for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: T-Mobile carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to ConsiderHere are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Seagate Technology Holdings plc (STX - Free Report) has an Earnings ESP of +2.49% and currently sports a Zacks Rank #1. It is set to release its first-quarter fiscal 2027 numbers on Oct. 27.
The Earnings ESP for Corning Incorporated (GLW - Free Report) is +0.68%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report third-quarter 2026 numbers on Oct. 27.
The Earnings ESP for Intel Corporation (INTC - Free Report) is +2.22%, and it carries a Zacks Rank of 2 at present. The company is scheduled to report third-quarter 2026 numbers on Oct. 29.
Shares of AT&T, Verizon and T-Mobile fell in premarket trading on Friday after a report said SpaceX was in talks with cellular infrastructure companies to secure access to at least 80,000 sites across the United States.
AT&T stock fell about 4.6%, Verizon declined around 4%, and T-Mobile dropped approximately 5% before the market opened.
SpaceX stock was up over 2%.
Bloomberg reported that SpaceX aims to secure a minimum of 80,000 cell sites and is negotiating with at least one major cellular infrastructure company, citing people familiar with the discussions.
The agreements could help the Elon Musk-led company establish a fourth nationwide wireless carrier, intensifying competition for the country's established telecom providers.
One company involved in the discussions is Crown Castle, which, alongside American Tower and Vertical Bridge Holdings, ranks among the largest owners of cellular towers in the US.
Crown Castle shares rose nearly 9% in premarket trading, while American Tower gained more than 6%. Bloomberg said the potential deals could be worth billions of dollars.
Wireless carriers typically lease space on cellular towers to install equipment that transmits signals across their networks.
Sharing tower infrastructure is generally more cost-effective than building and maintaining individual sites.
SpaceX's reported push to secure thousands of locations could therefore create a significant business opportunity for tower operators as the company assembles the infrastructure needed to compete in the US wireless market.
Asked during an earnings conference call on Wednesday whether Crown Castle was discussing leases with SpaceX, Amazon.com or other satellite-based telecom providers, Chief Executive Officer Chris Hillabrant said, "You can assume that we're talking to all parties."
He declined to discuss specific customers.
Hillabrant also described SpaceX's recent acquisition of low-band spectrum as a "huge milestone" in its ability to provide broad mobile coverage.
Tower operators' shares had already climbed after news of SpaceX's spectrum purchase earlier this month, reflecting investor expectations that the company could require substantial ground infrastructure to deploy its wireless services.
Musk has made clear his ambition to turn SpaceX into a standalone wireless carrier, using its Starlink satellite network and newly acquired spectrum to challenge established mobile operators.
SpaceX recently secured Federal Communications Commission approval to launch 15,000 satellites designed to provide mobile connectivity directly to phones.
Combined with its spectrum holdings and terrestrial infrastructure, the satellites could help the company build a more comprehensive wireless service.
"We will be building out our terrestrial networks so there's broad-based connectivity anywhere that SpaceX and Starlink are allowed to operate," Musk said during SpaceX's earnings call this week.
Satellite launches and spectrum acquisition "will pave the way for Starlink Mobile to become a major mobile carrier in the US," he said.
SpaceX has also said it plans to use home internet equipment to emit mobile signals around customers' installations.
However, research firm MoffettNathanson LLC has noted that these locations are not necessarily where infrastructure is needed to ensure consistent network coverage.
Securing access to existing cellular tower sites could help address that challenge, although the scale, cost and timing of any agreements remain unclear.
T-Mobile US Inc. (NASDAQ:TMUS) shares are trading lower Friday after a Bloomberg report that SpaceX is seeking at least 80,000 U.S. cell sites to build a fourth nationwide wireless carrier, with earnings due October 28.
Carnegie Investment Counsel lowered its position in shares of T-Mobile US, Inc. (NASDAQ: TMUS) by 86.5% in the third quarter, according to its most recent 13F filing with the SEC. The firm owned 4,565 shares of the Wireless communications provider's stock after selling 29,308 shares during the quarter. Carnegie Investment Counsel's holdings in
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Louisbourg Investments Inc. raised its holdings in T-Mobile US, Inc. (NASDAQ:TMUS – Free Report) by 6.7% in the 3rd quarter, according to the company in its most recent filing with the SEC. The firm owned 60,189 shares of the Wireless communications provider’s stock after acquiring an additional 3,797 shares during the quarter. T-Mobile US makes up about 1.7% of Louisbourg Investments Inc.’s portfolio, making the stock its 15th largest holding. Louisbourg Investments Inc.’s holdings in T-Mobile US were worth $9,816,000 at the end of the most recent quarter.
Several other large investors have also recently modified their holdings of TMUS. BlackRock Inc. bought a new stake in shares of T-Mobile US in the second quarter worth $6,625,275,000. Bank of New York Mellon Corp acquired a new stake in T-Mobile US in the second quarter valued at $839,194,000. Amundi increased its holdings in T-Mobile US by 40.6% in the first quarter. Amundi now owns 3,679,795 shares of the Wireless communications provider’s stock valued at $772,867,000 after purchasing an additional 1,062,643 shares during the period. Bank of America Corp DE bought a new position in T-Mobile US during the 2nd quarter worth $758,977,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in T-Mobile US by 1.1% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,076,380 shares of the Wireless communications provider’s stock worth $683,731,000 after purchasing an additional 43,783 shares during the last quarter. Institutional investors own 42.49% of the company’s stock.
Insider Buying and Selling at T-Mobile US In other news, CAO Daniel James Drobac sold 772 shares of the company’s stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $178.33, for a total transaction of $137,670.76. Following the transaction, the chief accounting officer owned 35,118 shares in the company, valued at approximately $6,262,592.94. This represents a 2.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.32% of the company’s stock.
Analyst Ratings Changes Several research analysts have commented on TMUS shares. Moffett Nathanson lifted their target price on T-Mobile US from $242.00 to $246.00 and gave the stock a “buy” rating in a report on Tuesday, September 22nd. Wells Fargo & Company decreased their price target on T-Mobile US from $170.00 to $169.00 and set an “equal weight” rating for the company in a research note on Friday, July 24th. JPMorgan Chase & Co. decreased their price target on T-Mobile US from $275.00 to $260.00 and set an “overweight” rating for the company in a research note on Monday, September 21st. Benchmark lowered their price objective on T-Mobile US from $295.00 to $280.00 and set a “buy” rating for the company in a research report on Friday, July 24th. Finally, Raymond James Financial raised T-Mobile US from a “market perform” rating to an “outperform” rating and set a $170.00 price objective on the stock in a research note on Monday, October 12th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, T-Mobile US has an average rating of “Moderate Buy” and an average target price of $244.65. View Our Latest Stock Analysis on T-Mobile US
T-Mobile US Trading Up 1.1% Shares of TMUS stock opened at $157.75 on Wednesday. T-Mobile US, Inc. has a fifty-two week low of $147.90 and a fifty-two week high of $230.51. The company has a debt-to-equity ratio of 1.48, a quick ratio of 0.83 and a current ratio of 0.92. The stock has a 50 day simple moving average of $172.06 and a two-hundred day simple moving average of $181.49. The company has a market cap of $169.21 billion, a P/E ratio of 16.52, a PEG ratio of 0.97 and a beta of 0.33.
T-Mobile US (NASDAQ:TMUS – Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The Wireless communications provider reported $2.99 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.59 by $0.40. The firm had revenue of $22.79 billion for the quarter, compared to analysts’ expectations of $22.95 billion. T-Mobile US had a return on equity of 20.16% and a net margin of 11.45%. The company’s revenue for the quarter was up 7.9% compared to the same quarter last year. During the same period in the prior year, the business earned $2.84 EPS. Research analysts forecast that T-Mobile US, Inc. will post 11.17 earnings per share for the current year.
T-Mobile US Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Wednesday, November 25th will be paid a $1.17 dividend. This represents a $4.68 annualized dividend and a yield of 3.0%. This is an increase from T-Mobile US’s previous quarterly dividend of $1.02. The ex-dividend date of this dividend is Wednesday, November 25th. T-Mobile US’s payout ratio is presently 49.01%.
About T-Mobile US (Free Report)
T-Mobile US, Inc (NASDAQ: TMUS) is a wireless communications company that provides mobile voice, messaging and data services to consumers, businesses and government customers in the United States, Puerto Rico and the U.S. Virgin Islands. Its offerings include postpaid and prepaid wireless plans, connected devices, broadband internet and other communications services.
The company operates a nationwide wireless network, including 5G services, and sells smartphones, tablets, connected devices and related accessories through retail stores, online channels and third-party distributors.
See Also Five stocks we like better than T-Mobile US Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge Want to see what other hedge funds are holding TMUS? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for T-Mobile US, Inc. (NASDAQ:TMUS – Free Report).
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NEW YORK--(BUSINESS WIRE)--T-Mobile and First Responders Children's Foundation (FRCF) are putting the spotlight on the heroes who serve our communities every day. The celebration kicks off October 24 with first responder appreciation events at 25 T-Mobile stores nationwide, followed by the First Responders Children's Foundation 2026 Roll Call of Heroes ceremony in Times Square on October 28, hosted by Jon Stewart. The ceremony marks three historic milestones: FRCF's 25th anniversary, 25 years si.
AT&T just posted a quarter that beat forecasts and lifted its profit outlook, yet its stock is getting punished harder than those of its two biggest rivals. A non-cash write-down, a satellite company circling the wireless market, and a fiber…
A quarter that topped forecasts and lifted the profit outlook isn’t protecting AT&T (NYSE:T | T Price Prediction), whose shares are falling harder than those of its biggest wireless rivals. AT&T stock is at $22.35, down 5%, a slide that shows sellers looking straight past the headline beat. That reaction runs against the usual script for a report that beats on revenue and raises guidance.
Selling stretches across the national carrier group, with Verizon Communications (NYSE:VZ) and T-Mobile (NASDAQ:TMUS) shares also trading lower. Specifically, Verizon stock is at $43.12, down 3%, a softer decline than the one hitting AT&T. T-Mobile stock is at $152.92, also down 3% and tracking Verizon closely.
Telecom weakness also registers in the Communication Services Select Sector SPDR ETF (NYSEARCA:XLC), which is at $109.08, down 1%. Advertising-driven businesses carry the most weight in that fund, so its dip works as sector context and says little about AT&T in particular. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is at $771.34, up 0.3%, so the broad market is holding firm while carriers fall.
Beat and Raise Collide With a Mexico Write-Down AT&T released its Q3 2026 results before the opening bell, with revenue of $32.3 billion and adjusted earnings per share both topping analysts’ expectations. AT&T also raised its full-year adjusted earnings per share outlook and trimmed its long-term capital investment plans. Chief executive John Stankey stated, “We are growing valuable customer relationships as more homes and businesses choose AT&T for all their advanced connectivity needs across both internet and on-the-go wireless.”
Beneath the headline beat, AT&T’s reported earnings per share landed far below its adjusted figure because of a non-cash impairment tied to its Mexico wireless business. Earlier this month, AT&T agreed to sell that operation, so the charge reflects a unit already headed out the door, and while such a charge leaves cash intact, the gap between reported and adjusted profit hands the quarter a messier headline than the beat alone would suggest.
AT&T’s Fiber Bundle Sets It Apart From Verizon and T-Mobile Carrier stocks face a fresh competitive question after a very different kind of rival stepped toward the wireless market. SpaceX (NASDAQ:SPCX) agreed to buy a nationwide spectrum portfolio from Grain Management, subject to Federal Communications Commission approval. That spectrum, SpaceX stated, will help its Starlink Mobile service become a major mobile carrier in the U.S.
AT&T pairs its fiber home internet business with mobile service, while Verizon and T-Mobile lean more heavily on wireless, and this mix means a satellite-based rival reaches AT&T, Verizon and T-Mobile in different ways. On paper, the fiber bundle gives AT&T a home connection that a phone service can’t easily replace.
Even with that fiber anchor, AT&T shares are absorbing a bigger loss than either Verizon or T-Mobile stock. One upside case rests on the revenue beat, the higher profit outlook and a lower long-term spending plan. Weighing against AT&T are the impairment-driven gap in reported profit and a share price falling even after a stronger quarter.
Spectrum Ruling Shapes AT&T’s Next Move The next test for AT&T is whether the Federal Communications Commission approves the SpaceX spectrum purchase. A ruling in favor would clarify how quickly Starlink Mobile can push into a market that AT&T, Verizon and T-Mobile already serve.
AT&T now carries a quarter that strengthened its profit outlook alongside a regulatory uncertainty that could reshape competition in its core wireless market. Its fiber footprint remains its main defense. Investors weighing their exposure should adjust their holdings carefully given that AT&T shares are earning little credit for the higher forecast.
Contact [email protected] for any questions or corrections.
Space Exploration Technologies Corp. (NASDAQ:SPCX) CEO Elon Musk backed the company's Starlink satellite internet service over its traditional telecom rivals, comparing the sector to a game of chess.
BDF Gestion trimmed its holdings in shares of T-Mobile US, Inc. (NASDAQ: TMUS) by 57.0% in the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 7,330 shares of the Wireless communications provider's stock after selling 9,707 shares during
Analyst’s Disclosure: I/we have a beneficial long position in the shares of TMUS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of TMUS, VZ, CMCSA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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Stock to Watch: T-Mobile (TMUS - Free Report) Founded in 1994 and headquartered in Bellevue, WA, T-Mobile US, Inc. is a national wireless service provider. The company offers its services under the T-Mobile, Metro by T-Mobile and Mint Mobile brands. T-Mobile, through its subsidiaries, provides wireless services for branded postpaid and prepaid, and wholesale customers.
TMUS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. TMUS has a Growth Style Score of B, forecasting year-over-year earnings growth of 14.9% for the current fiscal year.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.30 to $11.17 per share. TMUS boasts an average earnings surprise of +17.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TMUS should be on investors' short list.
T-Mobile US, Inc. maintains industry-leading free cash flow margin (25%), low payout ratio (23%), and the lowest leverage among peers, enabling robust capital allocation. TMUS trades at a forward P/E below 14x, offers a nearly 3% yield, and management targets 50% long-term upside potential. Starlink's competitive threat is acknowledged but seen as several years away, leaving TMUS well-positioned with an established network and customer base.
Markets occasionally mistake a headline for an existential threat, creating opportunities for investors willing to look past the immediate panic. Recently, telecommunications stocks contracted sharply after news that SpaceX NASDAQ: SPCX acquired a portfolio of mobile spectrum licenses.
T-Mobile US Today
$154.53 +2.66 (+1.75%)
As of 02:49 PM Eastern
This is a fair market value price provided by Massive. Learn more.
$147.90▼
$230.652.64%
16.18
$244.65
The fear is that low-Earth orbit satellite networks could eventually challenge established, ground-based cellular networks.
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This sentiment-driven sell-off dragged T-Mobile US NASDAQ: TMUS down to a new 52-week low. For those evaluating the physical realities of modern telecommunications, this sudden price action could represent a fundamental mispricing.
Rather than signaling the end of cell towers, this dip highlights the differences between satellite and terrestrial network capabilities. The gap between aerospace hype and terrestrial reality may create an opportunity where value investors can step in.
Physics Over Panic: Grounding the Satellite ThreatSpaceX recently agreed to acquire an 800 MHz spectrum portfolio to expand Starlink's mobile services. Interestingly, this is the spectrum T-Mobile previously agreed to sell to Grain in a transaction involving approximately $2.9 billion in cash and an exchange of 600 MHz spectrum. The broader market reacted swiftly to SpaceX's acquisition announcement, with a rapid sector-wide sell-off shaving approximately 13% off T-Mobile's share price in short order. Investors rushed to price in a future where satellites could disrupt traditional mobile connectivity, resulting in a wave of reactionary selling.
To understand why this reaction may be excessive, it helps to look at the physical limitations of telecommunications. Low-Earth-orbit satellites offer an excellent technological solution for rural, maritime, and aviation communication. Satellite bandwidth faces significant physical limitations when attempting to penetrate dense urban environments. Concrete canyons, deep subway systems, and high-rise office buildings disrupt signals originating from space.
Ground-based mid-band 5G networks rely on high-density, localized cell towers specifically engineered to handle extreme data loads and thousands of simultaneous connections per square mile. Satellite architecture currently cannot match the capacity of terrestrial 5G in major cities, where most consumer and enterprise mobile data consumption occurs.
Analysts at Raymond James recognized this dynamic, recently upgrading T-Mobile from Market Perform to Outperform and establishing a price target of $170. The firm explicitly cited that the competitive threat posed by Starlink's wireless expansion is overstated, arguing that meaningful competition could still be more than three years away. This upgrade suggests some analysts believe the initial market reaction was excessive relative to the near-term competitive threat.
Valuation Black Hole: Mispricing T-Mobile's EarningsThe most compelling aspect of a panic sell-off is the multiple compression it leaves in its wake. Following the spectrum news, T-Mobile's forward price-to-earnings ratio compressed to roughly 13.8. For a telecom operator that has historically commanded a valuation premium due to steady market share expansion, this lower multiple represents a noticeable discount relative to historical baselines.
When evaluating a compressed valuation, the next step is checking the underlying operational health. In the most recent quarter, T-Mobile reported earnings per share of approximately $2.99. This comfortably outpaced Wall Street consensus estimates, which were sitting near $2.59. Top-line revenue also grew nearly 7.9% year over year to about $22.79 billion, demonstrating sustained demand for core wireless services.
Beyond top-line growth, T-Mobile maintains a 20.16% return on equity and a pretax margin near 15%. This creates a potential fundamental disconnect. The company is successfully growing its revenue base and outperforming profitability expectations, yet T-Mobile's stock price recently hovered near a 52-week low of about $147.90. A declining share price paired with expanding earnings suggests the valuation drop could be tied to the satellite headline rather than internal operational decay.
Orbiting the Competition: Securing the Telecom YieldWhile terrestrial networks remain dominant in urban and suburban markets, T-Mobile is not ignoring the rural satellite opportunity. In a highly strategic move, T-Mobile entered into a joint venture agreement with competitors AT&T NYSE: T and Verizon NYSE: VZ to expand satellite-supported coverage in underserved geographic locations. The companies announced the agreement on Oct. 1, following their initial plans in May.
This cooperative approach could help hedge against potential low-Earth-orbit market penetration. It allows the legacy carriers to expand satellite-enabled connectivity and address rural coverage gaps without engaging in a costly, fragmented space race.
T-Mobile US MarketRank™ Stock Analysis4.999342364855 of 5 stars
100th Percentile
Moderate Buy
59.4% Upside
Healthy
Moderate
0.26 Selling Shares
21.28%
See Full Analysis
Financially, strong cash flow is an important buffer during periods of sector volatility. Telecommunications is a capital-intensive industry with high infrastructure depreciation, making operating cash flow a critical evaluation metric. T-Mobile currently generates about $23.03 in cash flow per share, resulting in an attractive price-to-cash-flow ratio near 6.6. While the balance sheet carries a standard debt-to-equity ratio of around 1.48, this deep liquidity pool easily supports T-Mobile's capital return program.
Management recently increased the quarterly dividend to $1.17 per share, pushing the yield to approximately 2.6%. With a payout ratio near 42.7%, the dividend remains secure and has room for future growth, even amid short-term multiple compression.
From a risk perspective, T-Mobile traditionally operates with a beta of 0.33. This exceptionally low beta means the stock has historically been less sensitive to broader market movements, typically acting as a defensive anchor in an equity portfolio. A sudden, double-digit single-day drawdown is noteworthy for a company with this specific risk profile. It reinforces the thesis that the recent price action was a liquidity cascade driven by headline panic, not a calculated adjustment to intrinsic value.
Ground Control: Capitalizing on the T-Mobile DipThe gap between the immediate hype around satellite mobile services and the timeline required to deploy physical infrastructure has created a potentially attractive market setup. While satellite networks will undoubtedly carve out a niche in remote connectivity, they lack the bandwidth to replace the high-density, mid-band 5G networks that power the modern urban economy.
The market's tendency to shoot first and ask questions later may have created a more attractive entry point for one of the largest players in the established telecom space. The combination of strong free cash flow, an expanding and insulated dividend yield, and a compressed valuation multiple presents a classic scenario of price detaching from fundamental value. For investors analyzing the telecommunications landscape, this recent weakness in T-Mobile's stock price could offer a compelling entry point, particularly for those seeking a balance of stable cash flow generation and valuation recovery.
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Starlink's spectrum grab sent T-Mobile to its worst single-day crash since going public, and the partial rebound raises a harder question about whether satellite competition is already baked into carrier valuations or just getting started.
T-Mobile (NASDAQ:TMUS | TMUS Price Prediction) stock is up 3% to $152.65 in afternoon trading, recovering part of the worst one-day loss in its history as a public company. Meanwhile, Verizon (NYSE:VZ) stock is up 2% to $42.43, tracking T-Mobile shares higher at a slower pace. AT&T (NYSE:T) stock is up 0.8% to $22.36 as well, representing the smallest gain among the three carriers.
For contrast, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.1% to $777.88. Notably, SpaceX (NASDAQ:SPCX) stock, whose Starlink unit set off the carrier selloff, is up 0.7% to $163.73.
Starlink’s Spectrum Push Sparked a Record Selloff
On October 9, Starlink said it’s adding up to 14 megahertz of paired spectrum in the 800 MHz band. SpaceX founder Elon Musk said the move was the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America. T-Mobile shares fell more than 13% that Friday, Stocktwits reported, the largest single-session decline since the company went public in 2013, as the other large carriers closed lower.
The shared recovery points to a review of Friday’s selling, since the spectrum plan itself is unchanged. That gain recovers only a fraction of Friday’s damage.
Towers Versus Satellites in the Wireless Race
Verizon, AT&T and T-Mobile own licensed spectrum along with the towers and equipment that put it to work, and in rural markets, coverage is the main reason customers choose one carrier over another. That model depends on heavy, ongoing investment in physical infrastructure, which is the barrier a satellite network would try to bypass.
SpaceX reaches phones from orbit through Starlink Direct to Cell, which connects existing 4G Long-Term Evolution (LTE) handsets in places without ground coverage. Any spectrum SpaceX acquires would feed a network with no towers behind it, a far smaller physical presence than the carriers maintain.
T-Mobile stock is down 23% so far this year, so the satellite worry hit shares that were already under pressure. This earlier weakness makes it harder to isolate how much of the current discount stems from satellite risk alone.
Overreaction or Early Warning for Carriers?
For T-Mobile, the bearish case is easy to see. A satellite operator holding its own spectrum could compete for subscribers in rural areas, where coverage drives the choice of carrier. That threat doesn’t need to arrive soon to compress the multiple now, since share prices tend to discount long-dated risks early.
On the other hand, the bullish case holds that a decline of Friday’s size, tied to a capability still in development, already prices in a competitor that hasn’t launched a consumer plan. On that view, the burden of proof sits with SpaceX, which still has to show it can turn spectrum into a priced, marketed phone service.
What to Watch Next
The key question for T-Mobile is whether SpaceX files for the regulatory approvals a consumer wireless service would require. A filing like that would convert a capability on paper into a process with a regulatory timeline, giving the carriers a clearer sense of when competition could reach their customers.
At the end of the day, investors should keep their T-Mobile share positions measured until SpaceX’s regulatory path comes into focus, since Friday showed how quickly one headline can reset sector valuations.
Contact [email protected] for any questions or corrections.
Key Takeaways SpaceX's spectrum deal sparks a sharp sell-off in telecom stocks.IYZ faces pressure from exposure to Verizon, AT&T and T-Mobile.Space ETFs could benefit from Starlink's long-term expansion. Telecommunications stocks sold off sharply on Oct. 10 after Elon Musk’s SpaceX agreed to acquire a nationwide spectrum portfolio to expand Starlink’s satellite internet business into mobile services.
Verizon, T-Mobile and AT&T Suffer Steep LossesVerizon (VZ - Free Report) plunged 8.75%, marking its worst single-day decline since July 2002, as quoted on CNBC. T-Mobile (TMUS - Free Report) dropped 13.27%, its steepest fall since 2013, while AT&T (T - Free Report) slid 9.81%, its worst session since 2000. Meanwhile, SpaceX (SPCX - Free Report) shares edged up about 1.3% on Oct. 9, 2026.
SpaceX to Acquire Spectrum PortfolioThe agreement involves acquiring spectrum assets from Grain Management. SpaceX described the portfolio as offering up to 14 megahertz of paired spectrum in the 800 MHz band. The acquisition is intended to strengthen Starlink’s push into mobile connectivity, according to the CNBC article.
Analysts See Long-Term Potential, Limited Near-Term ThreatSeveral analysts viewed the deal favorably. Evercore ISI said the acquisition gives SpaceX the outline of a more complete network alongside its existing satellite capabilities, as mentioned in the same CNBC source. Analysts believe established U.S. wireless carriers are unlikely to face significant competition in the immediate future, as building a rival ground-based network would require substantial time, infrastructure and investment, per CNBC.
ETF Impact Verizon-heavy ETF iShares U.S. Telecommunications ETF (IYZ - Free Report) lost 0.9% on Friday. Verizon has about 10% exposure to IYZ while TMUS has 3% focus on IYZ. AT&T also has a 4.4% exposure to the stock.
Meanwhile, SpaceX has solid exposure to ETFs like Baron First Principles ETF (RONB - Free Report) , Roundhill Space & Technology ETF (MARS - Free Report) , Global X Space Tech ETF (ORBX - Free Report) , and VanEck Space ETF (WARP - Free Report) . These ETFs should gain from the deal over the long term.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of WM, TMUS, VZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
BELLEVUE, Wash.--(BUSINESS WIRE)--Across the Gulf Coast, families and communities are facing the aftermath of Hurricane Isaias, including the tragic loss of life, damaged homes, flooding and widespread power outages. Our hearts are with those who have lost loved ones and everyone affected by the storm. At a time when reaching family, checking on neighbors or getting help matters more than ever, staying connected is especially important. Key Updates: Maintaining connectivity and restoring servic.
Weekly Market HighlightsDuring the week, 686 stocks gained more than 10%, while 0 stocks declined by more than 10%, indicating a strong upward market movement
SummaryT-Mobile is rated BUY with Moderate–High Confidence, offering 30–40% upside to a $220 YE2028 fair value.TMUS trades at ~9.7x 2026E adj. FCF, with a 2.8% dividend yield and robust share buybacks supporting per-share value creation.Growth is moderating, but TMUS remains the industry leader in cash flow growth, leveraging network advantages and efficiency initiatives.Key risks include intensifying competition, rising churn, and the need for disciplined capital allocation amid elevated debt levels. Getty Images
Summary BUY | Confidence: Moderate to High (75%)
T-Mobile (TMUS) closed trading at $167.65 per share (+1.04% on the day) as of market close today, October 7, 2026.
While TMUS no longer screens as cheap versus peers (nor
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Characteristics and Risks of Standardized Options: https://bit.ly/2v9tH6D. Shares in T-Mobile (TMUS) tapped December 2023 lows after SpaceX (SPCX) acquired a low-band spectrum license expected to expand the company's mobile capabilities.
Verizon (VZ), AT&T (T), T-Mobile (TMUS) and other mobile carriers sold off on Friday after SpaceX (SPCX) announced it acquired a low-band spectrum license. As Marley Kayden explains, it allows the Elon Musk-led firm to expand mobile carrier opportunities.
T-Mobile stock has been in a steep downtrend since peaking at $268.90 in March last year. The sell-off accelerated today as concerns grew over competition from SpaceX, pushing the shares to a low of $148, their lowest level since December 2023.
Elon Musk's Space Exploration Technologies (SPCX +0.30%) is buying spectrum for satellite communications service, inking a deal to purchase old T-Mobile (TMUS -12.56%), now owned by private equity firm Grain Management (which sounds like an agricultural concern, but apparently isn't) for an undisclosed sum.
T-Mobile (TMUS -12.56%) and SpaceX, of course,are currently partners in mobile telephony, with the latter helping to provide emergency cell service in cellphone "dead zones." So you might expect T-Mobile investors to shrug off this week's development as a non-issue.
They aren't. Instead, T-Mobile stock is down 13% as of 1 p.m. ET.
So why is that?
Image source: Getty Images.
What's SpaceX up to in orbit?As CNBC reports, SpaceX is buying "up to 14 megahertz of paired spectrum in the 800 MHz band" to provide Starlink Mobile communications services. Elon Musk calls the agreement a "very big deal."
Very big deal
— Elon Musk (@elonmusk) October 8, 2026 SpaceX itself says the purchase "will pave the way for Starlink Mobile to become a major mobile carrier in the US."
That's exactly what T-Mobile is worried about.
Premium Feature
Moneyball Superscore
78/100
Today's Change
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-12.56
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Current Price
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What this means for T-MobileThere's a big difference between SpaceX Starlink providing limited coverage to T-Mobile on contract, improving the latter's service, and giving it a competitive advantage over AT&T and Verizon -- and a SpaceX Starlink "major mobile carrier" competingwith T-Mobile, AT&T, and Verizon! Effectively, this announcement serves as a warning to T-Mobile: one of its best friends may soon become a bitter rival.
Having SpaceX as an ally is one reason analysts expected T-Mobile to outgrow its bigger rivals, with 18% annual earnings growth (T-Mobile) versus 10% (AT&T) and 4% (Verizon). Once SpaceX turns into a competitor, it will probably slow T-Mobile's growth instead.
If and when that happens, you can expect T-Mobile’s superior 17.3 P/E ratio to shrink — and T-Mobile’s stock price to fall.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends T-Mobile US. The Motley Fool has a disclosure policy.
T-Mobile US Inc. (NASDAQ:TMUS) is not used to double-digit moves. Now the stock is having its worst day in 13 years.
Shares fell 13% to $149 at midday Friday. That puts the stock on track for its steepest one-day drop since it began trading under the T-Mobile name in May 2013.
The selling followed a deal by Space Exploration Technologies Corp. (NASDAQ:SPCX). SpaceX agreed Thursday to buy nationwide 800 megahertz spectrum licenses from Grain Management.
These low-band airwaves travel long distances and pass through walls. SpaceX plans to pair them with its Starlink satellites. As a result, wireless carriers could face a new competitor.
The deal still needs Federal Communications Commission approval.
Peers AT&T Inc. (NYSE:T) and Verizon Inc. (NYSE:VZ) fell 11% and 10%, respectively.
Image: Envato Elements
Market News and Data brought to you by Benzinga APIs
SpaceX Lands Key Spectrum Deal as It Moves Deeper Into the Wireless Market Summary
SpaceX’s agreement to acquire low-band wireless spectrum advances its Starlink Mobile plans, raising fresh questions about competition for established wireless carriers
SpaceX is expanding its push into mobile connectivity through an agreement to acquire nationwide 800 MHz wireless spectrum from Grain Management.
The deal could help Elon Musk's company extend Starlink Mobile coverage beyond areas typically served by satellite connectivity. The transaction requires Federal Communications Commission approval, and financial terms have not been disclosed.
Low-band spectrum can travel longer distances and penetrate buildings more effectively than higher-frequency bands, potentially helping SpaceX address coverage challenges as it develops its satellite-based cellular service. Most existing phones support the 800 MHz band, although compatibility with the planned service remains uncertain.
The agreement weighed on shares of established wireless carriers. AT&T (T) fell 6% to $23.25 in after-hours trading Thursday, while Verizon (VZ) dropped 5.85% to $43.64 and T-Mobile US (TMUS) declined 6.63% SpaceX SPCX shares fell 4.19% during Thursday's session before gaining 2.32% in late trading.
The acquisition could expand SpaceX's competitive reach in wireless communications, though regulatory approval and execution remain key hurdles before the planned service can scale.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
SpaceX Corp (NASDAQ:SPCX)’s Starlink's new mobile push has put pressure on mobile operators like AT&T Inc (NYSE:T, XETRA:SOBA), T-Mobile US Inc (NASDAQ:TMUS, XETRA:TM5) and Verizon Communications Inc (NYSE:VZ, XETRA:BAC).
The US aerospace company is moving closer to challenging America’s biggest wireless carriers after agreeing to acquire nationwide mobile spectrum for Starlink Mobile.
Shares of AT&T, Verizon and T-Mobile fell more than 6% in after-hours trading on Thursday as investors assessed the threat from Elon Musk’s satellite business and its plans to expand into mobile services.
The agreement with Grain Management, an investment firm specializing in digital infrastructure, covers up to 14 megahertz of paired spectrum in the 800 megahertz band, although the financial terms were not disclosed.
The low-band frequencies could help Starlink Mobile address a major limitation of satellite-based phone services by allowing signals to travel farther and penetrate buildings, extending coverage beyond remote areas and cellular dead zones.
The acquisition requires final approval from the Federal Communications Commission (FCC), after which SpaceX plans to combine its satellite network with terrestrial wireless infrastructure to provide mobile connectivity indoors and outdoors.
The move builds on Starlink Mobile’s existing 2 gigahertz spectrum, which is designed to provide data capacity, while the newly acquired low-band frequencies would strengthen coverage across the United States.
The FCC also approved SpaceX’s next-generation Starlink Mobile constellation this week, authorizing the company to launch 15,000 satellites optimized for direct-to-device connectivity, with more than 100 times the bandwidth of its current generation.
The developments mark a shift in Starlink’s ambitions from providing satellite connectivity to competing more directly with established mobile operators, which rely heavily on terrestrial networks and spectrum licenses to serve customers.
SpaceX’s latest move could eventually increase pressure on carriers to improve coverage and pricing, although the competitive impact will depend on service reliability, network deployment and the cost of expanding terrestrial infrastructure.
The sell-off reflects investor concerns about future competition rather than evidence of an immediate loss of customers or revenue at AT&T, Verizon or T-Mobile.
Download this episode on Apple Podcasts/Spotify or listen below:
Starlink’s (SPCX) $8B power play sends telecom stocks tumbling. (00:14) Meta (META) is cutting off ByteDance ads. (01:05) Apple (AAPL) reportedly cuts component orders. (01:47)
This is an abridged transcript.
SpaceX’s (SPCX) $8B deal to buy a nationwide low-band spectrum portfolio sparked a sudden selloff in major telecom stocks.
Grain Management said in a statement that SpaceX (SPCX) will acquire 100% of Grain’s nationwide 800 MHz spectrum portfolio.
Telecom shares have dipped in premarket action, with T-Mobile (TMUS), Verizon (VZ), and AT&T (T) all down roughly 6%. The three carriers formed a satellite-focused joint venture in May that some market participants believe is intended to respond to the threat from SpaceX.
Combining nationwide low-band airwaves with space-based capacity positions Starlink Mobile to bypass traditional cell towers and challenge major wireless carriers on coverage and in-building signal.
Meta Platforms (META) has banned advertisements from TikTok parent company ByteDance across its platforms in the U.S. and six other countries.
The immediate restriction applies to the U.S., Canada, Egypt, Indonesia, Japan, Thailand, and Vietnam, according to Meta's statement reported by Reuters.
The policy extends to third-party advertisers running campaigns that link directly to TikTok or other ByteDance-owned properties within those jurisdictions, the report noted.
Meta said in a statement cited by Reuters, "We don't have to run ads from a competitor whose goal is to pull people off our apps." Meta calling the decision a normal industry practice.
Apple (AAPL) has reportedly told some of its suppliers to cut production of components for its newly launched iPhone 18 Pro and iPhone 18 Pro Max.
Nikkei Asia reported on Friday that the move comes after soaring memory chip costs forced price increases that have dampened consumer demand.
The report said component orders for October were cut by at least 15% from original requests.
An executive-level source told Nikkei that Orders for both premium models are down 15%-20% in October.
Taiwan Semiconductor Manufacturing Co. (TSM), Qualcomm (QCOM), Broadcom (AVGO), Amkor (AMKR), Corning (GLW), and Texas Instruments (TXN) are among the companies supporting Apple's (AAPL) supply chain and manufacturing expansion.
Stock index futures are in the green.
Crude oil is down 1% at $90. Brent crude is down 1.2% at $102.
The FTSE 100 is up 0.8% and the DAX is up 1.2%.
Economic calendar:
10:00 am Consumer Sentiment
And be sure to take our investment news quiz for the week. I’ll give you one of the questions to look out for: Which of the following companies announced layoff plans alongside mixed earnings and a disappointing forecast? You have four options. Is it Coca-Cola, American Express, Costco or Nike?
Space Exploration Technologies Corp (NASDAQ:SPCX) announced a deal to acquire low-band spectrum from Grain Management Thursday. News of the deal has stocks of U.S. mobile carriers trading lower as SpaceX could become a major competitor moving forward.
• SpaceX stock is moving in positive territory. What’s pushing SPCX stock higher?
The Spectrum DealSpaceX is acquiring the nationwide 800 MHz spectrum portfolio from Grain Management for an undisclosed amount.
"We announced an agreement to acquire a nationwide low-band spectrum license portfolio that will pave the way for Starlink to become a major mobile carrier in the US. With this new spectrum and our Gen2 constellation, Starlink Mobile can ensure Americans have access to high-speed mobile broadband no matter where they are," SpaceX tweeted.
In a blog post, SpaceX said the acquisition addressed a key technical gap for Starlink Mobile to become a major U.S. mobile carrier.
SpaceX said when it receives final FCC approval, Starlink Mobile will deploy and connect devices everywhere.
The company highlighted that the new low-band spectrum will help Starlink Mobile signal penetrate walls and other obstacles.
"Starlink Mobile can now become the first network operator to deploy both satellite and terrestrial spectrum. One network that provides Americans with a reliable service indoors, outdoors, in cellular dead zones, and everywhere between."
SpaceX CEO Elon Musk shared the news on social media and said this is a "very big deal."
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Telecommunications Stocks FallSpaceX stock is up 2.56% to $164.68 in after-hours trading Thursday.
Shares of mobile carrier companies falling after hours significantly are:
AT&T (NYSE:T): -7.92%
Verizon Communications (NYSE:VZ): -6.90%
T-Mobile US (NASDAQ:TMUS): -6.78%
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Forget cake. For its 10th birthday, Mint Mobile (NASDAQ: TMUS) is serving up savings. Today, Mint announced its Best. Deal. Ever., giving new customers six months of any plan — including Unlimited — for $10/month. That means new customers can get six months of premium wireless for $60.
“Ten years ago, Mint set out to challenge the old way of doing wireless and prove customers could get premium service without the premium price tag,” said Scott Venuti, GM of Mint Mobile. “One decade and millions of customers later, we’ve delivered on that mission without ever raising plan rates for our customers — and we’re celebrating with our best deal yet: any six-month plan, including Unlimited, for $10 a month. This milestone belongs to everyone who helped prove there’s a better way to do wireless… from the customers who trusted Mint early to the newest customers joining us today.”
To mark the milestone, Mint is rolling out a new campaign featuring Ryan Reynolds and Julia Stiles, who appear in a new spot calling out 10 things people hate about the wireless status quo — from confusing pricing to unnecessary nonsense — and showing why Mint’s refreshingly simple approach has been the smarter choice for 10 years and counting. Fans of fairly specific late-’90s cinema may find themselves appropriately whelmed.
The deal applies across Mint’s full plan lineup, giving new customers the flexibility to choose the plan that fits them best — 6GB, 17GB, 23GB or Unlimited — and get six months for $10/month. Every Mint plan includes unlimited talk and text, high-speed data, access to the nation’s largest 5G network, mobile hotspot, Wi-Fi Calling, Scam Screener, free calling to Mexico, Canada and the UK, free texting to 190+ countries and destinations, and free roaming in Canada with unlimited talk and text plus 3GB of high-speed data. Customers can manage it all in the Mint Mobile app, from data usage and payments to plan changes. Because if Mint is throwing a birthday deal, it’s bringing the good stuff.
The offer is part of Mint’s broader 10 Years of Outfoxing the System anniversary campaign, celebrating the customers who helped turn Mint from a wireless upstart into one of the most disruptive brands in mobile. The celebration includes special recognition for subscribers who have been with Mint since 2016, customer surprise-and-delight moments, a limited-edition anniversary merch drop and other ways for the Mint community to mark the milestone. Because while Mint may be turning 10, the mission has not changed: deliver premium wireless, keep prices low and make the old way of doing wireless feel even more outdated.
For more information, visit mintmobile.com.
Follow the T-Mobile Newsroom on X and Instagram to catch the latest company updates.
Upfront payment of $60 for 6-month plan (equiv. to $10/mo.) required. Limited time new customer offer for first 6 months only; then full-price plan options available. Taxes & fees extra. >50GB/mo. may slow when our network is busy. Includes up to 20GB hotspot. International features are not for extended international use. See mintmobile.com for details.
About T-Mobile
As the supercharged Un-carrier, T-Mobile US, Inc. (NASDAQ: TMUS) is powered by an award-winning nationwide 5G Advanced network that connects more people, in more places, than ever before. With T-Mobile’s unique value proposition of best network, best value and best experiences, the Un-carrier is redefining connectivity and fueling competition while continuing to drive the next wave of innovation in wireless, broadband and beyond. Headquartered in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile, Metro by T-Mobile and Mint Mobile. For more information, visit https://www.t-mobile.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20261007320627/en/
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
BELLEVUE, Wash.--(BUSINESS WIRE)--T-Mobile (NASDAQ: TMUS) today announced the Top 40 Division Finalists in its Friday Night 5G Lights competition, kicking off an exciting new phase where small-town schools across the country will compete division by division for a shot at the ultimate prize: a $1 million home field upgrade. New this year, the Top 40 schools are divided into four divisions — West, Midwest, South and East — with 10 schools representing each region. Every finalist will receive $25.
BELLEVUE, Wash.--(BUSINESS WIRE)--Forget cake. For its 10th birthday, Mint Mobile (NASDAQ: TMUS) is serving up savings. Today, Mint announced its Best. Deal. Ever., giving new customers six months of any plan — including Unlimited — for $10/month. That means new customers can get six months of premium wireless for $60. “Ten years ago, Mint set out to challenge the old way of doing wireless and prove customers could get premium service without the premium price tag,” said Scott Venuti, GM of Min.
Shares of T-Mobile US, Inc. (NASDAQ:TMUS – Get Free Report) have been assigned a consensus rating of “Moderate Buy” from the twenty-eight brokerages that are currently covering the company, Marketbeat reports. Six research analysts have rated the stock with a hold rating, twenty-one have given a buy rating and one has given a strong buy rating to the company. The average 12-month target price among analysts that have covered the stock in the last year is $247.84.
Several brokerages recently commented on TMUS. JPMorgan Chase & Co. reduced their price target on T-Mobile US from $275.00 to $260.00 and set an “overweight” rating for the company in a research report on Monday, September 21st. Sanford C. Bernstein reaffirmed a “neutral” rating on shares of T-Mobile US in a research report on Monday, September 28th. Wolfe Research reiterated a “peer perform” rating on shares of T-Mobile US in a research note on Friday, August 14th. Wells Fargo & Company cut their price objective on T-Mobile US from $170.00 to $169.00 and set an “equal weight” rating for the company in a report on Friday, July 24th. Finally, KeyCorp decreased their target price on shares of T-Mobile US from $260.00 to $250.00 and set an “overweight” rating for the company in a research note on Friday, July 24th.
Check Out Our Latest Stock Report on T-Mobile US
Insider Buying and Selling In other news, CAO Daniel James Drobac sold 772 shares of T-Mobile US stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $178.33, for a total value of $137,670.76. Following the completion of the transaction, the chief accounting officer owned 35,118 shares of the company’s stock, valued at $6,262,592.94. This trade represents a 2.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.32% of the stock is currently owned by corporate insiders. Institutional Investors Weigh In On T-Mobile US Institutional investors and hedge funds have recently modified their holdings of the company. Moody National Bank Trust Division grew its holdings in T-Mobile US by 49.2% during the third quarter. Moody National Bank Trust Division now owns 5,553 shares of the Wireless communications provider’s stock worth $906,000 after purchasing an additional 1,832 shares during the period. Legacy Private Trust Co. raised its stake in T-Mobile US by 3.2% in the third quarter. Legacy Private Trust Co. now owns 2,710 shares of the Wireless communications provider’s stock valued at $442,000 after buying an additional 85 shares during the period. Rosenberg Matthew Hamilton lifted its position in shares of T-Mobile US by 25.0% in the third quarter. Rosenberg Matthew Hamilton now owns 2,168 shares of the Wireless communications provider’s stock valued at $354,000 after buying an additional 433 shares during the last quarter. Baker Tilly Wealth Management LLC boosted its stake in shares of T-Mobile US by 37.7% during the 3rd quarter. Baker Tilly Wealth Management LLC now owns 5,198 shares of the Wireless communications provider’s stock worth $848,000 after acquiring an additional 1,423 shares during the period. Finally, Versant Capital Management Inc increased its holdings in shares of T-Mobile US by 5.3% during the 3rd quarter. Versant Capital Management Inc now owns 1,597 shares of the Wireless communications provider’s stock worth $260,000 after acquiring an additional 81 shares during the last quarter. 42.49% of the stock is owned by institutional investors.
T-Mobile US Stock Up 0.8% T-Mobile US stock opened at $165.93 on Wednesday. The company has a current ratio of 0.92, a quick ratio of 0.83 and a debt-to-equity ratio of 1.48. T-Mobile US has a 1-year low of $160.81 and a 1-year high of $231.02. The company has a fifty day simple moving average of $175.82 and a 200 day simple moving average of $185.12. The company has a market cap of $177.99 billion, a P/E ratio of 17.37, a price-to-earnings-growth ratio of 1.04 and a beta of 0.33.
T-Mobile US (NASDAQ:TMUS – Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The Wireless communications provider reported $2.99 EPS for the quarter, topping the consensus estimate of $2.59 by $0.40. The firm had revenue of $22.79 billion for the quarter, compared to analysts’ expectations of $22.95 billion. T-Mobile US had a net margin of 11.45% and a return on equity of 20.16%. The company’s revenue for the quarter was up 7.9% on a year-over-year basis. During the same period in the previous year, the firm posted $2.84 EPS. Research analysts anticipate that T-Mobile US will post 11.02 earnings per share for the current fiscal year.
T-Mobile US Increases Dividend The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Wednesday, November 25th will be given a dividend of $1.17 per share. This represents a $4.68 annualized dividend and a yield of 2.8%. This is an increase from T-Mobile US’s previous quarterly dividend of $1.02. The ex-dividend date of this dividend is Wednesday, November 25th. T-Mobile US’s payout ratio is currently 42.72%.
T-Mobile US Company Profile (Get Free Report)
T-Mobile US, Inc is a wireless communications company that provides mobile voice, messaging, and data services to consumers, businesses, and government customers in the United States. Its offerings include wireless plans, smartphones, connected devices, accessories, and related services, supported by a nationwide cellular network.
The company also provides fixed wireless broadband and other internet services for households, as well as wireless connectivity, networking, and communications solutions for businesses and public-sector organizations.
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MassMutual Private Wealth & Trust FSB lessened its stake in T-Mobile US, Inc. (NASDAQ:TMUS – Free Report) by 43.4% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 8,565 shares of the Wireless communications provider’s stock after selling 6,573 shares during the period. MassMutual Private Wealth & Trust FSB’s holdings in T-Mobile US were worth $1,397,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Several other hedge funds also recently made changes to their positions in TMUS. BlackRock Inc. acquired a new stake in shares of T-Mobile US in the second quarter valued at approximately $6,625,275,000. State Street Corp increased its holdings in shares of T-Mobile US by 4.3% in the 4th quarter. State Street Corp now owns 25,281,709 shares of the Wireless communications provider’s stock valued at $5,133,198,000 after acquiring an additional 1,047,624 shares during the period. Invesco Ltd. increased its holdings in shares of T-Mobile US by 10.5% in the 4th quarter. Invesco Ltd. now owns 8,730,485 shares of the Wireless communications provider’s stock valued at $1,772,638,000 after acquiring an additional 827,381 shares during the period. Franklin Resources Inc. boosted its stake in T-Mobile US by 3.6% during the 4th quarter. Franklin Resources Inc. now owns 6,395,890 shares of the Wireless communications provider’s stock worth $1,298,622,000 after purchasing an additional 222,603 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in T-Mobile US by 13.3% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,958,610 shares of the Wireless communications provider’s stock worth $1,006,796,000 after purchasing an additional 582,964 shares during the period. Hedge funds and other institutional investors own 42.49% of the company’s stock.
T-Mobile US Stock Performance NASDAQ:TMUS opened at $164.64 on Tuesday. The company has a debt-to-equity ratio of 1.48, a current ratio of 0.92 and a quick ratio of 0.83. The firm has a market cap of $176.60 billion, a price-to-earnings ratio of 17.24, a price-to-earnings-growth ratio of 1.03 and a beta of 0.33. The firm’s fifty day moving average price is $176.15 and its 200 day moving average price is $185.41. T-Mobile US, Inc. has a 1-year low of $160.81 and a 1-year high of $231.02.
T-Mobile US (NASDAQ:TMUS – Get Free Report) last announced its quarterly earnings data on Thursday, July 23rd. The Wireless communications provider reported $2.99 EPS for the quarter, topping analysts’ consensus estimates of $2.59 by $0.40. The company had revenue of $22.79 billion during the quarter, compared to the consensus estimate of $22.95 billion. T-Mobile US had a net margin of 11.45% and a return on equity of 20.16%. T-Mobile US’s quarterly revenue was up 7.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.84 EPS. On average, sell-side analysts expect that T-Mobile US, Inc. will post 11.02 EPS for the current year. T-Mobile US Increases Dividend The company also recently declared a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Wednesday, November 25th will be issued a dividend of $1.17 per share. This is an increase from T-Mobile US’s previous quarterly dividend of $1.02. This represents a $4.68 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend is Wednesday, November 25th. T-Mobile US’s dividend payout ratio is currently 49.01%.
Wall Street Analysts Forecast Growth A number of research analysts have commented on TMUS shares. Morgan Stanley dropped their price objective on shares of T-Mobile US from $260.00 to $230.00 and set an “overweight” rating on the stock in a research note on Tuesday, July 7th. Wells Fargo & Company decreased their target price on shares of T-Mobile US from $170.00 to $169.00 and set an “equal weight” rating for the company in a research note on Friday, July 24th. Weiss Ratings reiterated a “hold (c)” rating on shares of T-Mobile US in a research note on Friday, September 11th. Moffett Nathanson raised their price target on T-Mobile US from $242.00 to $246.00 and gave the stock a “buy” rating in a report on Tuesday, September 22nd. Finally, The Goldman Sachs Group dropped their price target on T-Mobile US from $230.00 to $211.00 and set a “buy” rating on the stock in a research report on Friday, September 25th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $247.84.
Check Out Our Latest Research Report on T-Mobile US
Insider Buying and Selling In other T-Mobile US news, CAO Daniel James Drobac sold 772 shares of the business’s stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $178.33, for a total transaction of $137,670.76. Following the transaction, the chief accounting officer owned 35,118 shares in the company, valued at approximately $6,262,592.94. The trade was a 2.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 0.32% of the stock is currently owned by insiders.
T-Mobile US Profile (Free Report)
T-Mobile US, Inc is a wireless communications company that provides mobile voice, messaging, and data services to consumers, businesses, and government customers in the United States. Its offerings include wireless plans, smartphones, connected devices, accessories, and related services, supported by a nationwide cellular network.
The company also provides fixed wireless broadband and other internet services for households, as well as wireless connectivity, networking, and communications solutions for businesses and public-sector organizations.
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Key Takeaways Verizon is joining AT&T and T-Mobile in a venture using satellites to expand wireless coverage.VZ will use direct-to-device satellite services to provide backup connectivity during disruptions.Common technical standards could improve compatibility, innovation and efficient spectrum use. Verizon Communications (VZ - Free Report) has entered into a joint venture with AT&T Inc. (T - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) to expand wireless coverage and reduce mobile dead zones across the United States. The partnership will use satellite connectivity to help provide mobile service to rural, remote and underserved areas where traditional networks have limited reach.
Through this venture, Verizon will complement its existing network with satellite connectivity, helping users stay connected when traditional mobile service is unavailable. Its focus on direct-to-device services will let compatible devices connect to satellite networks while providing backup connectivity during natural disasters or other network disruptions. The initiative is expected to reduce coverage gaps, improve reliability and provide more satellite service options.
The partnership will help Verizon adopt common technical standards that improve compatibility among devices, operating systems and satellite networks, making it easier to introduce new connectivity services. It could also encourage competition and innovation in satellite services, support more efficient use of licensed spectrum and help the company improve network performance while enhancing the overall service experience.
Existing carrier-satellite agreements will remain in place, allowing Verizon to continue its independent connectivity initiatives alongside the new venture. This will give the company an additional platform to extend coverage, strengthen network reliability and provide greater connectivity across the United States.
How Are Competitors Advancing?Verizon faces competition from Lumen Technologies, Inc. (LUMN - Free Report) and Optimum Communications, Inc. (OPTU - Free Report) . Lumen is expanding its fiber network to support growing demand for high-speed connectivity from businesses and data centers. The company is improving its infrastructure to increase capacity and support cloud computing, AI and other data-intensive applications. These investments are helping Lumen improve network performance and provide more reliable connectivity across key markets.
Optimum is strengthening its fiber footprint to bring high-speed broadband to more homes and businesses. The company is advancing its infrastructure to support higher data usage and improve service performance. Optimum is investing in network upgrades to support the growing use of cloud, streaming and other data-intensive services.
VZ’s Price Performance, Valuation & EstimatesVerizon’s shares have gained 10.8% over the past year compared with the industry’s growth of 119.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, Verizon trades at a forward price-to-earnings ratio of 8.77, significantly below the industry average of 37.6.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have remained static at $5.03 per share, while the same for 2027 have increased 0.2% to $5.30 over the past 60 days.
Image Source: Zacks Investment Research
Verizon stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investment bank Morgan Stanley analyst Adam Jonas reaffirmed bullish sentiment on Elon Musk-led Space Exploration Technologies Corp. (NASDAQ:SPCX), saying investors have a "unique opportunity" to buy shares that he considers "unusually cheap."
SpaceX Will Address Power, Chipmaking BottlenecksOn Sunday, influencer Sawyer Merritt took to the social media platform X, sharing an investor note by Jonas that said that investors could “take advantage of a unique opportunity to buy [SpaceX] shares that look unusually cheap” ahead of the Starship Flight 15 launch, following Flight 14, which was Starship’s maiden orbital journey.
“We expect developments over the next few months will help investors better appreciate the role of SPCX in addressing the critical bottlenecks of power and chip making, the note said.”
In a separate post, Merritt shared further details from the note, where Jonas said that not many people owned SpaceX because investors needed to understand “many tightly interlinked businesses” in multiple sectors.
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“We are sympathetic to the investor that approaches SPCX from one angle, such as Telcos or A&D or AI in isolation. Doing so would make the stock look quite expensive,” Jonas said, adding that his “message” to such investors was that putting a value on the company was “more of an ‘and’ problem than an ‘or’ problem” and that this itself gives SpaceX its value.
Musk, on Sunday, highlighted Starlink’s ability to stream five college football games simultaneously on a commercial flight. United Airlines Holdings Inc. (NASDAQ:UAL), which shared the video, called its Starlink Wi-Fi a "game-changer."
The billionaire has recently faced off against Delta Air Lines Inc. (NYSE:DAL) over the latter’s decision to not offer Starlink internet on its flights, choosing Amazon.com Inc.‘s (NASDAQ:AMZN) LEO internet service instead. Musk said that Delta CEO Ed Bastian could lose his job over the Starlink snub.
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Check out more of Benzinga’s Future Of Mobility coverage by following this link.
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T-Mobile and Verizon both raised 2026 guidance, but they are chasing completely opposite strategies to win the same industry. Which approach actually holds up depends on what kind of investor is doing the judging.
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T-Mobile US (NASDAQ:TMUS | TMUS Price Prediction) and Verizon (NYSE:VZ) raised 2026 guidance in late July earnings. T-Mobile asks investors to pay for subscriber and market share increases. Verizon asks them to collect a large dividend while its turnaround plays out.
Premium Plans Lift T-Mobile as Verizon Stops Buying Customers At T-Mobile, postpaid service revenue rose 12.6% to $15.85 billion. More than 60% of new customers chose premium plans. Port-in ARPAs ran about 20% above port-outs. The UScellular deal opens rural markets where T-Mobile holds 24% of homes. CEO Srini Gopalan: “We’re just getting started.”
Verizon cut device subsidies. Wireless equipment revenue fell nearly 20% and total revenue slid 0.7%. Postpaid phone net additions reached 184,000, versus a 9,000 loss a year earlier. Churn improved to 0.92%. CEO Dan Schulman: “The era of just the free handset, that’s gone right now.” Fiber connections reached 10.9 million, up 43.3%.
Business Driver T-Mobile Verizon Growth Engine Postpaid wireless, 5G broadband Fiber, combined packages 2026 Capex About $10.0B $16.0B to $16.5B Buybacks Power T-Mobile While Dividends Anchor Verizon T-Mobile raised its 2026 shareholder return authorization to $18.2 billion from $14.6 billion and bought back $2.2 billion in the quarter. Shares are down 17.64% this year. With a yield of only 2.52%, the stock depends on growth.
Verizon’s 6.08% yield comes from a $0.7075 quarterly dividend. Buybacks are limited at $4.5 billion. After the Frontier deal, net unsecured debt rose to 2.5x adjusted EBITDA from 2.2x. Shares are up 18.41% year to date.
Lens T-Mobile Verizon Forward P/E 12x 9x Hold Ratings 5 15 Verizon Must Turn Discipline Into Revenue by Year-End Verizon expects mobility and broadband service revenue growth to speed up to about 3% in Q3 and 4% in Q4. Wireless ARPA fell 1.4% to $168.35. At T-Mobile, watch whether service revenue growth holds near the 6% forecast for Q3.
Matching Each Carrier to the Investor It Fits T-Mobile suits growth investors seeking subscriber increases. Analysts agree, with 9 Strong Buy and 14 Buy ratings. Postpaid churn rising to 0.99% warrants caution.
Verizon fits income investors. Its Hold ratings suggest Wall Street wants proof the turnaround works. If ARPA keeps falling, the dividend story weakens. If T-Mobile’s churn keeps rising, its higher valuation becomes harder to justify.
Contact [email protected] for any questions or corrections.
Industry veteran establishes leadership framework for joint venture (JV). JV will help close coverage gaps by making satellite-enabled connectivity easier to deliver where traditional service is limited. The JV is designed to complement terrestrial mobile networks, giving customers even more reliable connectivity and choice. JV will support industry competition and innovation while allowing existing carrier-satellite agreements to remain in place. AT&T, T-Mobile, and Verizon have entered into a joint venture agreement focused on expanding coverage in underserved areas across the U.S. This follows a May announcement that the companies would pool limited spectrum resources to help eliminate coverage "dead zones" and expand satellite coverage for customers nationwide.
Leadership
Paul Roth will serve as interim CEO of the JV while an active search is underway for a permanent CEO. Roth is a seasoned wireless industry executive, who previously held several leadership roles at AT&T, Cingular Wireless, and Ameritech.
The JV will be managed by a board with representatives from each founding member.
Customer Benefits
Terrestrial mobile networks will continue to deliver the high-quality experience customers expect every day. However, reliable connectivity has never been more important. In areas where traditional cell service is a challenge, the JV will aim to provide customers with stronger, even more reliable connectivity and greater choice.
Fewer coverage gaps: Will nearly eliminate dead zones in the U.S. currently without mobile service, reaching previously unserved areas. Reliable connectivity in emergencies: Redundant connectivity will become available when existing ground-based networks are unavailable due to extreme natural disasters or other unusual disruptions. Improved network performance: Will give customers more consistent performance and simpler access to satellite services across providers. This will speed up feature updates and improve connectivity for everyone, everywhere. Innovative communications services: Through combined investment by the three JV partners, provider options will expand, and, as a first step, direct-to-device (D2D) access will improve. This will enhance competition as consumer choices grow in satellite service. Emerging communications technologies can be more easily and quickly developed and launched to enhance customer experience. Common technical specifications: A unified approach will provide a better and more consistent customer experience across the industry. Industry Benefits
The JV will aim to drive industry progress by enabling competition, fostering innovation, expanding access, and simplifying integration, delivering significant benefits for satellite and mobile connectivity.
Expanded access: More satellite service providers will gain opportunities to compete, invest, and grow and the JV will work with rural mobile network operators (MNO) to enable them to bring new products to market for their customers. Easy technical integration: MNOs will be able to deploy innovative new services for customers more quickly. Technology-neutral innovation platform: By applying the best technology solutions to the right use cases, connectivity will expand to areas across the country where coverage is currently limited or unavailable, further strengthening U.S. technology leadership. Efficient use of spectrum: Will improve the application and utilization of valuable and scarce nationally licensed spectrum resources. Industrywide device compatibility: User experience will improve on satellite networks, with a standards-based approach to development involving operating system providers, mobile app developers and original equipment manufacturers. Existing carrier-satellite agreements will remain in place and the JV partners can continue connectivity efforts independently.
About AT&T
We help more than 100 million U.S. families, friends and neighbors, plus nearly 2.5 million businesses, connect to greater possibility. From the first phone call 150 years ago to our 5G wireless and multi-gig internet offerings today, we @ATT innovate to improve lives. For more information about AT&T Inc. (NYSE:T), please visit us at about.att.com. Investors can learn more at investors.att.com.
About T-Mobile US, Inc.
As the supercharged Un-carrier, T-Mobile US, Inc. (NASDAQ: TMUS) is powered by an award-winning 5G network that connects more people, in more places, than ever before. With T-Mobile's unique value proposition of best network, best value and best experiences, the Un-carrier is redefining connectivity and fueling competition while continuing to drive the next wave of innovation in wireless and beyond. Headquartered in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile, Metro by T-Mobile and Mint Mobile. For more information please visit: https://www.t-mobile.com.
About Verizon Communications Inc.
Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of $138.2 billion in 2025. Verizon's world-class team never stops innovating to meet customers where they are today and equip them for the needs of tomorrow. For more, visit verizon.com or find a retail location at verizon.com/stores.
AT&T (T.N), T-Mobile (TMUS.O) and Verizon (VZ.N) have appointed wireless industry veteran Paul Roth as interim chief executive of their new joint venture aimed at expanding satellite-enabled mobile coverage, the companies said on Thursday.
The largest U.S. wireless companies said the venture -- first announced in May -- seeks to expand coverage in underserved areas across the U.S and end nearly all dead zones without mobile service. The plan also aims to ensure redundant connectivity during natural disasters and improved network performance using so-called "direct to device" satellite technology.
Some analysts also suggest the joint venture could be defensive, citing Elon Musk's SpaceX.
SpaceX's (SPCX.O) ambition to build a full-fledged mobile service rattled investors in the U.S. wireless sector after the company in August outlined plans that could eventually pit Starlink against the three major U.S. telecoms.
SpaceX acquired 65 megahertz of wireless spectrum from EchoStar (ECHO.O) for $19.6 billion through two deals announced last year, giving Starlink airwaves to expand into mobile services.
SpaceX President Gwynne Shotwell said in August the company will build the infrastructure needed to make Starlink "a true mobile service" and expects to win "quite a few" customers from the Big Three wireless carriers.
AT&T, Verizon and T-Mobile have invested hundreds of billions of dollars over three decades to acquire spectrum licenses, build their networks, and attract and retain customers.
FCC Chair Brendan Carr told Reuters earlier this year Starlink will have the ability on its own or in partnership with traditional carriers to address the dead zones.
The FCC on Wednesday moved to release more spectrum to boost in-home satellite broadband.
"Making next-gen satellite broadband faster and more reliable will not only benefit current subscribers, but also enhance competition for all consumers -- putting downward pressure on prices in the home-internet marketplace," Carr said.
Under its partnership with T-Mobile, SpaceX uses Starlink satellites to provide direct-to-cell connectivity for compatible smartphones outside traditional cell coverage.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: T-Mobile (TMUS - Free Report) Founded in 1994 and headquartered in Bellevue, WA, T-Mobile US, Inc. is a national wireless service provider. The company offers its services under the T-Mobile, Metro by T-Mobile and Mint Mobile brands. T-Mobile, through its subsidiaries, provides wireless services for branded postpaid and prepaid, and wholesale customers.
TMUS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 14.79; value investors should take notice.
Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.21 to $11.02 per share. TMUS also boasts an average earnings surprise of +17.3%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, TMUS should be on investors' short list.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: T-Mobile (TMUS - Free Report) Founded in 1994 and headquartered in Bellevue, WA, T-Mobile US, Inc. is a national wireless service provider. The company offers its services under the T-Mobile, Metro by T-Mobile and Mint Mobile brands. T-Mobile, through its subsidiaries, provides wireless services for branded postpaid and prepaid, and wholesale customers.
TMUS is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. TMUS has a Growth Style Score of B, forecasting year-over-year earnings growth of 13.4% for the current fiscal year.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.25 to $11.02 per share. TMUS boasts an average earnings surprise of +17.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TMUS should be on investors' short list.
Key Takeaways AD's site rental revenues surged 95% year over year to $53.2 million in the second quarter.AD's T-Mobile deal requires leases on at least 2,015 more towers for a minimum of 15 years.Array Digital's colocations rose to 4,362 at June-end, while tower tenancy improved to 0.98. Array Digital Infrastructure, Inc. (AD - Free Report) is undergoing a major transformation after divesting its wireless operations, positioning itself as a pure-play digital infrastructure provider centered on its tower portfolio. The transition is strengthening recurring revenues and creating opportunities for margin expansion.
Tower Business Picks Up SteamArray owned 4,456 towers across 19 states at the end of second-quarter 2026. The company plans to grow its tower business primarily through additional colocations and amendments to existing sites, which should generate incremental revenue without requiring proportionate increases in operating costs.
Momentum is already visible. Second-quarter site rental revenues surged 95% year over year to $53.2 million, supported by the Master License Agreement (MLA) signed with T-Mobile US Inc. (TMUS - Free Report) . The agreement requires T-Mobile to lease space on at least 2,015 additional Array towers for a minimum of 15 years and extends leases on roughly 600 existing colocations.
Tower operating metrics are also moving in the right direction. Colocations increased sequentially to 4,362 at June-end from 4,290 at March-end, while the tower tenancy rate improved to 0.98 from 0.96. Increasing tenancy should be particularly important because adding tenants to existing infrastructure can support attractive incremental economics and improve tower cash flow.
Spectrum Monetization Lends SupportSpectrum monetization provides substantial financial flexibility. Array has already completed major spectrum transactions with AT&T, T-Mobile and Verizon and continues to pursue monetization of its remaining spectrum assets, primarily C-Band.
Array also expects margins to improve as it evolves from an infrastructure base built to support a wireless operator into a standalone tower company. Management is targeting ground-lease optimization, including acquiring land interests where economically attractive, while reducing costs associated with maintaining the tower portfolio.
Price PerformanceArray has declined 33.1% over the past year against the industry’s growth of 95.5%, outperforming peers like Gogo Inc. (GOGO - Free Report) and Cogent Communications Holdings, Inc. (CCOI - Free Report) . GOGO has lost 74.1%, while CCOI is down 80.6% over this period.
One-Year AD Stock Price Performance
Image Source: Zacks Investment Research
End NoteArray's transition toward a tower-focused model appears encouraging. Long-duration T-Mobile leases provide improved revenue visibility, while rising colocations, cost optimization and spectrum monetization offer avenues for stronger cash generation.
Sequential tenancy gains and higher site rental revenue support the operating transition. Spectrum sales have added liquidity, while the company returned capital through a special dividend. Consequently, the stock appears to be an enticing investment option in the volatile market.
Array currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Telecom stocks can be attractive options for multiple reasons. Their businesses are normally fairly stable, as they provide essential services, and thus, their financial performance will normally be fairly consistent from one period to the next. That stability can also make them excellent dividend investments, as consistently strong financial results can enable a business to reliably make regular payouts to its shareholders.
Two top telecom stocks that may be particularly enticing options for investors to consider these days are AT&T (T -1.89%) and T-Mobile US (TMUS +0.62%). They've both been struggling over the past year, but they can be attractive value-based investments that also can generate plenty of dividend income. Which dividend stock is the better buy today?
Image source: Getty Images.
AT&T offers a higher yield, but T-Mobile has recently raised its payoutA big benefit of buying AT&T stock right now is that at 4.5%, its yield is fairly high, well above the S&P 500 average of 1.1%. T-Mobile also offers an above-average yield, but at 2.8%, it's a fair bit lower than AT&T's.
However, unlike its rival, T-Mobile has been raising its dividend recently, and if that trend continues, the gap in yields may shrink over time. A growing dividend is also an encouraging sign for investors that the business is doing well. Last week, T-Mobile announced it would be raising its dividend by 15% -- a significant increase, as oftentimes dividend stocks announce more modest bumps to their payouts.
Meanwhile, AT&T hasn't increased its dividend since 2020.
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Both businesses have been growing steadilyAT&T last reported earnings in July, and its revenue rose 2.3% for the second quarter, totaling $31.6 billion. Its free cash flow was also encouraging, as it totaled $4.7 billion for the period, up from $4.4 billion a year earlier. For dividend investors, these are the types of steady and solid numbers that highlight the overall stability of the business, and why the dividend looks safe. AT&T has paid out $8 billion in cash dividends over the course of an entire year, so if it's generating more than $4 billion on a quarterly basis, its dividend looks to be in solid shape.
T-Mobile also reported earnings in July, and its growth rate was a bit better, coming in at 7.9%, with revenue totaling $22.8 billion for the period. While its earnings were nearly unchanged, the company's adjusted free cash flow rose by 4% to $4.8 billion. Over the past four quarters, T-Mobile has paid out about $4.3 billion in dividends. Even with the hefty increase to its payout recently, its dividend also looks to be incredibly safe.
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Which stock is the better value buy?Telecom stocks haven't been hot buys over the past year, as AT&T has declined by 12% and T-Mobile has plummeted by around 30%. Worries about rising interest rates and about Space Exploration Technologies Corp, better known as SpaceX, disrupting the sector have weighed on these stocks.
T-Mobile has been generating more growth and thus commands a bit of a higher earnings multiple. But it's still fairly cheap. Currently, it's trading at a forward price-to-earnings multiple (based on analyst estimates) of just under 12. By comparison, AT&T stock trades at a slightly lower forward P/E multiple of 10.
AT&T, thus, is slightly cheaper, but it's also growing at a more modest pace.
T Revenue (Quarterly YoY Growth) data by YCharts
Why I’d go with T-MobileBoth AT&T and T-Mobile can make for solid income investments to buy today. However, I'd give the edge to T-Mobile. It's growing at a better rate, and a higher valuation is very well justifiable in that case.
While T-Mobile’s yield is lower than AT&T's, the gap is likely to shrink if it continues to increase its dividend, as it might given its strong free cash flow. Its decline has been more significant over the past year, but it was also trading at a far higher premium. From here on out, I believe it's in a good position to outperform AT&T.
