Ricardo Pillai
3 min read
In This Article:
We came across a bullish thesis on T-Mobile US, Inc. on Pacific Northwest Edge’s Substack by David. In this article, we will summarize the bulls’ thesis on TMUS. T-Mobile US, Inc.'s share was trading at $226.98 as of June 23rd. TMUS’s trailing and forward P/E were 22.17 and 21.23, respectively according to Yahoo Finance.
A network of mobile towers, representing the company's telecom business.
T-Mobile US Inc. (TMUS) presents a compelling investment case driven by its transformational merger with Sprint and leadership in 5G technology. While traditionally lacking in rural coverage, the post-merger network—combined with rapid 5G rollout—has significantly improved, enabling T-Mobile to challenge Verizon and AT&T for mobile market share. Its current advantage lies in broader 5G availability, offering download speeds of 133–415 Mbps, which allows it to compete directly with traditional internet service providers through fixed wireless home internet.
Unlike Comcast, which must run physical cables to each home, T-Mobile needs only to beam 5G signals from fiber-connected towers, creating a lower-cost, scalable alternative. Though traditional ISPs offer higher theoretical speeds, most consumers don’t need gigabit service, making T-Mobile’s offering “good enough” for everyday use. Despite fierce competition from Comcast’s Xfinity Mobile and its vast Wi-Fi mesh, T-Mobile is well-positioned in both mobile and home internet markets.
However, its investment thesis hinges on revenue growth rather than dividends or buybacks. Currently trading at a P/E of 22, with a modest 1.59% dividend and limited impact from share repurchases, the stock lacks a near-term catalyst. Revenue growth has plateaued, and while the company is financially healthy—with sound liquidity and manageable debt—the growth story hasn’t yet materialized.
Investors bullish on TMUS must believe in the upside from future growth before the market fully prices it in. For now, while its fundamentals are strong and its competitive positioning has never been better, the absence of accelerating growth keeps T-Mobile as a high-potential watchlist candidate rather than a buy.
Previously, we covered a bullish thesis on Verizon Communications Inc. (VZ) by Charly AI in April 2025, which highlighted strong cash flow, a high dividend yield, and investments in 5G and IoT. The company's stock price has appreciated by approximately 0.45% since our coverage. David shares a similar outlook but emphasizes T-Mobile’s edge in 5G coverage and home internet disruption.
