T-Mobile US Stock: Is TMUS Underperforming the Communication Sector?

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T-Mobile US Stock: Is TMUS Underperforming the Communication Sector?

With a market cap of $204.5 billion, T-Mobile US, Inc. (TMUS) is a leading national wireless service provider offering voice, messaging, data, and high-speed internet services across the United States, Puerto Rico, and the U.S. Virgin Islands. Headquartered in Bellevue, Washington, T-Mobile is a subsidiary of Deutsche Telekom AG and a pioneer in 5G network deployment.

Companies worth more than $200 billion are generally labeled as “mega-cap” stocks and T-Mobile US fits this criterion perfectly. Operating under the T-Mobile, Metro by T-Mobile, and Mint Mobile brands, the company provides wireless devices, accessories, and financing solutions through retail stores, apps, and third-party distributors.

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Shares of T-Mobile US have dipped 28.3% from its 52-week high of $261.56The stock has fallen 13.6% over the past three months, lagging behind the State Street Communication Services Select Sector SPDR ETF's (XLC) 2% decline over the same time frame. 

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TMUS stock is down 7.6% on a YTD basis, underperforming XLC’s 1.7% decrease. In the longer term, shares of the wireless carrier have decreased 22.4% over the past 52 weeks, compared to XLC's 13.6% increase over the same time frame.

Despite a few fluctuations, the stock has been trading below its 50-day and 200-day moving averages since September last year. 

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Shares of T-Mobile US rose 6.1% following its Q1 2026 results on Apr. 28. The company reported strong Q1 2026 results, with revenue rising 11% to $23.1 billion, service revenue increasing 11.3% to $18.83 billion, and adjusted EBITDA growing 12% to $9.24 billion, all driven by strong postpaid customer growth. Postpaid net account additions increased 6% to 217,000, while postpaid ARPA rose 3.9% to $151.92. 

The stock also benefited from raised 2026 guidance, including postpaid net account additions of 950,000 - 1.05 million, core adjusted EBITDA of $37.1 billion - $37.5 billion, and higher operating cash flow and free cash flow forecasts.

Nevertheless, TMUS stock has lagged behind its rival, AT&T Inc. (T). AT&T stock has dipped marginally on a YTD basis and 9.8% over the past 52 weeks. 

Despite the stock’s underperformance, analysts remain bullish on TMUS. The stock has a consensus rating of “Strong Buy” from the 30 analysts covering it, and the mean price target of $261.25 is a premium of 39.3% to current levels. 


On the date of publication, Sohini Mondal 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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