T-Mobile has battled its larger rivals on price, and that has led to the company’s much higher total of net new subscribers compared to AT&T and Verizon. T-Mobile has said it expects to have 7 million to 8 million 5G fixed broadband subscribers by 2025, up from around 2.5 million at the end of last year. The company got a scare in June following reports that Amazon was thinking of entering the wireless market
Analysts are solidly bullish on the stock, with 29 of 31 having a Buy or Strong Buy rating and the others have Hold ratings. At a share price of around $142.50, the implied gain based on a median price target of $175.50 is about 23.2%. At the high target of $225.00, the implied gain is 28.2%.
Second-quarter revenue is forecast at $19.38 billion, down 1% sequentially and by 1.6% year over year. Adjusted EPS are pegged at $1.74, down 7% sequentially and 10.3% lower year over year. For the full 2023 fiscal year, analysts have forecast EPS of $7.49, up 12.1%, on sales of $79.42 billion, down 0.2%.
T-Mobile stock trades at 19.0 times expected 2023 EPS, 14.1 times estimated 2024 earnings of $10.07 and 11.1 times estimated 2025 earnings of $12.84 per share. The 52-week range is $142.47 to $154.38 a share. The company does not pay a dividend, and total shareholder return for the past 12 months was 5.88%.
U.S. Steel
Over the past 12 months, shares of United States Steel Corp. (NYSE: X) have added more than 25%, including a decline of more than 11% over the past 6 months. Steel rebar prices have dropped by around 8.5% in the past year and by around 36% since mid-March. The company released second-quarter adjusted EPS guidance last month to a range of $1.81 to $1.86. When it reported first-quarter results in March, EPS guidance was $0.58 to $0.63. U.S. Steel said higher realized selling prices for flat-rolled steel and reduced costs contributed to the upside news.
Of 12 brokerages covering the shares, only two have a Buy or Strong Buy rating. Another eight rate the stock at Hold. At a share price of around $25.00, the stock trades right at its median price target. At the high target of $37.00, the upside potential is 48%.
Second-quarter revenue is expected to come in at $4.94 billion, up 10.5% sequentially but 21.5% lower year over year. Adjusted EPS are forecast at $1.77, up 130.4% sequentially and down 54.1% year over year. For the 2023 fiscal year, analysts expect U.S. Steel to post EPS of $4.13, down 58.5%, on sales of $18.18 billion, down 13.7%.
U.S. Steel stock trades at 6.1 times expected 2023 EPS, 11.9 times estimated 2024 earnings of $2.13 and 7.8 times estimated 2025 earnings of $3.26 per share. The 52-week trading range is $17.89 to $31.55, and the company pays an annual dividend of $0.20 (yield of 0.78%). Total shareholder return for the past 12 months was 26.45%.
Originally published at 24/7 Wall St.
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