Bellevue, Washington-based T-Mobile US, Inc. (TMUS) is a wireless service provider that offers voice, messaging, and data services to postpaid, prepaid, wholesale and other services customers. Valued at a market cap of $285.3 billion, the company provides its services under the T-Mobile, Metro by T-Mobile and Sprint brands. 

Shares of this telecom service provider have considerably outpaced the broader market over the past 52 weeks. TMUS has rallied 54.9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 8.6%. Moreover, on a YTD basis, the stock is up 13.8%, compared to SPX’s 4.3% drop. 

Zooming in further, TMUS has also outpaced the iShares U.S. Telecommunications ETF’s (IYZ) 30.5% uptick over the past 52 weeks and 2% rise on a YTD basis. 

On Apr. 24, TMUS released its Q1 earnings results. The company’s revenue improved 6.6% year-over-year to $20.9 billion and topped the forecasted figure by 1.5%. Meanwhile, its earnings of $2.58 per share advanced 29% from the year-ago quarter and exceeded the consensus estimates by 5.3%. TMUS also delivered record-high postpaid net and gross customer additions in the quarter. Adding to the positives, the company raised its fiscal 2025 core adjusted EBITDA guidance to a range of $33.2 billion to $33.7 billion. 

However, despite these strong results, the stock dropped 11.2% in the following trading session, likely due to postpaid wireless subscriber additions falling short of expectations and a higher year-over-year postpaid churn rate, which may have raised investor concerns. 

For the current fiscal year, ending in December, analysts expect TMUS’ EPS to grow 9.3% year over year to $10.56. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters. 

Among the 27 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on 16 “Strong Buy,” two “Moderate Buy,” eight “Hold,” and one “Strong Sell” rating. 

This configuration is slightly more bullish than a month ago, with 15 analysts suggesting a “Strong Buy” rating. 

On Apr. 30, The Bank of Nova Scotia (BNS) upgraded TMUS’ rating to “Outperform” with a price target of $277.50, which indicates a 10.4% potential upside from the current levels. 

The mean price target of $271.30 represents an 8% potential upside from TMUS’ current price levels, while the Street-high price target of $305 suggests an upside potential of 21.4%.