We recently published a list of Long-Term Stock Portfolio: 15 Best Stocks for 15 Years. In this article, we are going to take a look at where T-Mobile US, Inc. (NASDAQ:TMUS) stands against other best stocks for 15 years.
Russell Investments believes that 3 features are defining the market outlook for 2025. These include the elevated level of the S&P 500 forward P/E ratio, the potential for further US dollar strength, as well as the direction of the US 10-year Treasury yield. The active equity managers have been challenged by the severe market concentration. The firm opines that a flattening out of such trends— which can be seen due to policy shifts or change in sentiments related to earnings growth and valuations for mega caps — can support active manager outperformance.
Russell Investments remains focused on sectors in which AI adoption has been ramping up, including industrials, healthcare, and consumer goods. As per the firm, companies that leverage AI for productivity improvements remain well-placed to gain a lasting competitive edge and provide healthy returns. Therefore, skilled active managers are required to look for such companies, primarily those that are in less-covered segments of the market.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Sectors Providing Investment Opportunities
With respect to real assets, Russell Investments sees attractive investment opportunities in real estate and infrastructure, mainly sectors that can benefit from the stabilization of long-term interest rates and favorable relative valuations in comparison to other growth assets. The application of AI in real estate, like data centers and healthcare facilities, continues to emerge as a critical growth area. Furthermore, the infrastructure investments continue to gain momentum from energy utilities and pipeline exposures, given the US administration’s emphasis on expanding LNG (liquified natural gas) production.
The firm also believes that an early focus on deregulation and tax cuts would likely be well-received by equity investors. Overall, an expected US soft landing, together with anticipated policy moderation on trade and immigration, creates specific opportunities for well-positioned portfolios, says Russell Investments.
Our Methodology
We sifted through the holdings of iShares Core S&P 500 ETF and shortlisted the companies that have 10-year revenue growth of over ~10%. Next, we selected stocks that were the most popular among elite hedge funds. We have ranked the stocks in ascending order of hedge fund sentiment.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A customer checking out their new device at a T-Mobile store, illustrating the convenience and accessibility of retail stores.
T-Mobile US, Inc. (NASDAQ:TMUS)
10-Year Revenue Growth: ~10.6%
Number of Hedge Fund Holders: 70
T-Mobile US, Inc. (NASDAQ:TMUS) offers wireless communications services. Benchmark analysts maintained a “Buy” rating on the company’s stock with the price objective of $275.00, citing confidence in its growth prospects. The firm’s analysts noted the company’s healthy position among customers switching carriers, which can support T-Mobile US, Inc. (NASDAQ:TMUS)’s continued growth in postpaid phone and overall postpaid units. Furthermore, the company’s performance in core urban markets reinforces Benchmark’s confidence.
T-Mobile US, Inc. (NASDAQ:TMUS)’s early investments in 5G technology offered it a head start in network coverage and performance. This advantage was a critical driver of subscriber growth, mainly in the postpaid phone segment. Its sustainable 5G network advantage can continue to fuel market share and industry-leading EBITDA growth. As 5G adoption increases and more applications use this technology, the company remains well-placed to capitalize on this trend. T-Mobile US, Inc. (NASDAQ:TMUS) and EQT announced the successful close of their JV to acquire fiber-to-the-home provider, Lumos. This deal exhibits a critical milestone in T-Mobile US, Inc. (NASDAQ:TMUS)’s broadband growth and builds on the Un-carrier’s success in providing best-in-class connectivity.
Lumos operates a 7,500-mile fiber network, offering high-speed connectivity to 475,000 homes throughout the Mid-Atlantic. The JV combines the Un-carrier’s unique assets with EQT’s fiber infrastructure expertise and Lumos’ scalable build capabilities in a bid to fuel rapid network expansion, with a target of reaching 3.5 million homes by 2028 end. To drive this growth, T-Mobile US, Inc. (NASDAQ:TMUS) invested $950 million into JV, with an additional $500 million aimed between 2027 and 2028.
Overall, TMUS ranks 14th on our list of best stocks for 15 years. While we acknowledge the potential of TMUS as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than TMUS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
