5 Best 5G Stocks to Buy Now

3. T-Mobile US, Inc. (NASDAQ:TMUS)

Market Cap as of August 8: $181.309 billion

T-Mobile US, Inc. (NASDAQ:TMUS) is an American wireless network operator. According to Ookla, the company has the highest 5G availability and a higher 5G speed than its competitors. The company claims it is 2 years ahead of its competitors in terms of 5G technology. On August 5, S&P Global Ratings raised the issuer credit rating on T-Mobile US, Inc. (NASDAQ:TMUS) to “BBB-” from “BB+”.

Even though T-Mobile US, Inc. (NASDAQ:TMUS) reported missing revenue and EPS estimates, the fundamentals still seem strong. The company reported a net loss of $108 million mostly due to merger-related costs. The company’s services revenues grew 6% on a YoY basis to $15.3 billion. T-Mobile US, Inc. (NASDAQ:TMUS) had 1.7 million new postpaid net customers and 146,000 net prepaid customers in the quarter. Furthermore, the company exited the quarter with over 1.5 million High-Speed Internet customers after the addition of 560,000 customers.

On July 28, Scotiabank analyst Maher Yaghi upgraded T-Mobile US, Inc. (NASDAQ:TMUS) shares to Outperform from Sector Perform and set a price target of $167, up from $153. The analyst expects the company to outperform its competitors and the company will probably see a notable uptake in fixed wireless and mobile/internet bundling. Furthermore, Yaghi sees an improved free cash flow for the company. He noted that the FCF will be “multi-year in nature” and lead to “value accretive” capital returns.