T-Mobile US Inc. (TMUS) shares are trading at lower $113.76 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $136.75.
To add more color to this target, the company’s high over the last year is $119.20 and the low is $63.50. Over the last 52 weeks, TMUS is up 41.83% while the S&P 500 is up 12.59%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, TMUS reported a profit of $10.91 billion. T-Mobile US Inc. also saw revenues increase to $17.67 billion. In addition, TMUS has free cash flow of -$1.62 billion as of 06-2020. The company’s EBITDA came in at $4.88 billion which compares well with its peers.
TMUS booked profit margins of 5.20%, its Return on Equity (ROE) is 7.20%, and its Return on Assets is 2.40%. All told, it is clear that, TMUS needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. TMUS has a short ratio of 1.87 and outstanding shares of 1.24B.
TMUS has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at 2.81. T-Mobile US Inc. TMUS also noted assets of $187.2 billion at the end of the last quarter. Investors should also keep an eye on sector updates as TMUS has historically followed its peers on positive news.
All told, T-Mobile US Inc. TMUS has strung together solid data and demonstrated underlying fundamentals. At its current valuation, TMUS represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
T-Mobile US Inc. TMUS is now commanding a market cap of 140.99B and a float of 558.34M. TMUS is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of TMUS stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in TMUS, either long or short, and we have not been compensated for this article.