Bellevue, Washington-based T-Mobile US, Inc. (TMUS) provides mobile communications services. Valued at $190.1 billion by market cap, the company offers wireless voice, messaging, and data services.
Shares of this leading telco operator have underperformed the broader market over the past year. TMUS has declined 26.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.2%. In 2026, TMUS stock is down 12.7%, compared to the SPX’s 13% rise on a YTD basis.
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Narrowing the focus, TMUS’ underperformance is also apparent compared to iShares U.S. Telecommunications ETF (IYZ). The exchange-traded fund has gained about 45.4% over the past year. Moreover, the ETF’s 27.9% gains on a YTD basis outshine the stock’s losses over the same time frame.
www.barchart.com TMUS underperformed due to investor concerns over decelerating subscriber growth, heightened promotional competition from Verizon Communications Inc. (VZ) and AT&T Inc. (T), and strategic friction from migrating legacy customers onto pricier plans. Additionally, heavy capital commitments toward joint ventures and fiber expansion, elevated smartphone costs impacting margins, and emerging overhangs around satellite-to-cellular capabilities have weighed on valuation multiples despite solid earnings beats.
On Jul. 23, TMUS shares tumbled over 10% after reporting its Q2 results. Its adjusted EPS of $3.13 exceeded Wall Street expectations of $2.49. The company’s revenue was $22.8 billion, exceeding Wall Street forecasts of $22.7 billion.
For the current fiscal year, ending in December, analysts expect TMUS’ EPS to grow 5.5% to $10.72 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 30 analysts covering TMUS stock, the consensus is a “Strong Buy.” That’s based on 21 “Strong Buy” ratings, three “Moderate Buys,” and six “Holds.”
www.barchart.com The configuration has been consistent over the past three months.
On Jul. 24, Scotiabank kept an “Outperform” rating on TMUS and lowered the price target to $232, implying a potential upside of 30.9% from current levels.
The mean price target of $244.45 represents a 37.9% premium to TMUS’ current price levels. The Street-high price target of $310 suggests an ambitious upside potential of 74.9%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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