T-Mobile US Inc. (TMUS) shares are trading at lower $112.42 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $137.35.
To add more color to this target, the company’s high over the last year is $123.42 and the low is $63.50. Over the last 52 weeks, TMUS is up 37.65% while the S&P 500 is up 14.62%. 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 3.62 and outstanding shares of 1.24B.
TMUS has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 4.47 million and more growth is possible in the weeks ahead. 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 139.57B and a float of 583.09M. 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.