T-Mobile’s Earnings Beat Drives Gains

TMUS offers wireless communications services under the T-Mobile and MetroPCS brands. It’s the second-largest wireless operator in the U.S., serving 98 million customers, which is good for roughly 30% of the U.S. retail wireless market. The company recently expanded into fixed wireless broadband, with over 5 million customers and a wholesale channel.

As for its finances, T-Mobile’s third-quarter revenue hit nearly $20.2 billion (a 4.7% year-over-year increase), with net profit rising 43% to $3.1 billion. The company’s adjusted per-share earnings of $2.61 beat consensus expectations of $2.43.

It’s no wonder TMUS shares are up 42% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

T-Mobile Bringing in Big Money

Institutional volumes reveal plenty. Recently, TMUS has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in TMUS shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of communications names are under accumulation right now. But there’s a powerful fundamental story happening with T-Mobile.

T-Mobile Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, TMUS has had strong sales and earnings growth:

• 3-year sales growth rate (+5.1%)
• 3-year earnings growth rate (+71.6%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +36.6%.

Now it makes sense why the stock has been powering to new heights. TMUS has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

T-Mobile has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when TMUS was a top pick…rising higher:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

T-Mobile Price Prediction

The TMUS rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in TMUS at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.