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T-Mobile (TMUS) Now a Buy: Is It Part of Your Portfolio?

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On Oct 5, Zacks Investment Research upgraded T-Mobile US, Inc.TMUS by a notch to a Zacks Rank #2 (Buy).

The company reported strong financial results in the second quarter of 2015 wherein both the top and the bottom line outpaced the Zacks Consensus Estimate.

Owing to the success of its Simple Choice plan and the continued evolution of the Un-carrier strategy, the company now expects branded postpaid net customer additions between 3.4-3.9 million in 2015, reflecting an increase from the previous guidance of 3.0-3.5 million. Notably, as of Jun 30, 2015, the total customer base of T-Mobile stood at 58.908 million, up 16.5% year over year.

In Jan 2015, the FCC (Federal Communications Commission) announced that T-Mobile US was the winning bidder of AWS-3 spectrum licenses covering around 97 million people for an aggregate bid price of $1.8 billion. This recent license wins should further help the company expand its network coverage.

Interestingly, T-Mobile has always adopted a competitive approach to entice rival carriers' customers and safeguard its position against major U.S. wireless companies like Verizon Communications Inc. VZ , AT&T, Inc. T and Sprint Corp. S .

Recently, the company introduced its iPhone plan, offering subscribers the latest iPhone 6s for as low as $5 per month, to be paid over a period of 18 months. The 'Jump on Demand' plan, as touted by the company, requires subscribers to trade in their devices in order to avail the offer.

Also, in Mar 2015, T-Mobile had unveiled its Un-carrier 9.0 initiative with an aim to revolutionize the business enterprise segment. With this plan, the carrier seeks to provide business customers with transparent pricing and additional benefits for businesses of all sizes. As part of this effort, T-Mobile has rolled out various promotional offers along with cellular and data plans for business customers.

It is also worth noting that despite stiff competition, T-Mobile's unique "Un-Carrier" business model has gained commendable popularity. The service offers a series of price concessions like no annual service contract, equipment installment facility, free international data roaming, to name a few. This has also helped the company gain a large number of customers.

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AT&T INC (T): Free Stock Analysis Report

SPRINT CORP (S): Free Stock Analysis Report

VERIZON COMM (VZ): Free Stock Analysis Report

T-MOBILE US INC (TMUS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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