Cell Phone Company Near 52-Week Low

Last week was busy with earnings.

Plus, a delayed inflation report on Friday really drew everyone’s attention.

But earnings for a $250 billion company slipped under the radar.

You’d think a company worth over $250 billion would get talked about more!

T-Mobile (ticker: TMUS) released earnings before the market opened last Thursday.

And very few people were talking about it.

Here are some of the highlights.

T-Mobile added almost 2.4 million customers in the 3rd quarter.

The increase was 50% higher than the number of new customers added in the 3rd quarter of 2024.

T-Mobile also had almost $22 billion in revenue, which was 9% higher than 2024.

A great earnings report meant the stock zoomed, right?

Actually, T-Mobile’s stock price fell 3%.

T-Mobile is slightly down for the past 12 months and it’s near its 52-week low from January.

What’s going on with T-Mobile?

All of the new customer additions came at a cost.

While revenue was higher, net income fell because of higher expenses.

In particular, T-Mobile spent an extra billion dollars in 2025 on marketing.

And average revenue per customer might be starting to stall.

Postpaid average revenue per account rose over 2% compared to 2024.

But it dropped $0.43 compared to the 2nd quarter, which is the biggest quarter-to-quarter drop since 2022.

Postpaid accounts for over 60% of T-Mobile’s revenue, so average revenue per account potentially hitting a ceiling is a big deal.

However, the concerns are overblown, and T-Mobile is a great deal right now.

T-Mobile’s net margin of 14.5% is one of the highest in the entire Telecom industry.

And over the last 5 years, T-Mobile’s operating income has averaged 11% growth every year.

11% growth sounds amazing when compared to AT&T’s (ticker: T) negative 4% growth and Verizon’s (ticker: VZ) negative 0.4% growth in operating income over those same 5 years.

And if you’re interested in dividends, T-Mobile has you covered.

T-Mobile started paying dividends in 2023.

Its dividend yield is only 1.9%, which is low for telecom stocks.

But T-Mobile has already raised its dividend over 50% since its first payment in 2023.

And over the last 12 months, T-Mobile has generated more than $15 billion in free cash flow.

The one drawback is T-Mobile is more expensive than its competitors.

T-Mobile’s price-to-earnings ratio currently sits at 20.5x, which is near the average for the Telecom industry.

But AT&T’s and Verizon’s price-to-earnings ratios are much lower at 8x and 9x, respectively.

However, T-Mobile is growing and adding millions of new customers.

And I’m willing to pay more for a growing company.

What other stocks near their 52-week lows are you currently looking at?