Must-See: Jim Cramer’s 10 Best Stock Picks for Investors Right Now

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

Number of Hedge Fund Investors: 67

Jim Cramer reported that Wells Fargo has increased its price target for T-Mobile US Inc. (NASDAQ:TMUS) shares from $200 to $230 and maintained its overweight rating. The bank’s analysts pointed to price increases and substantial free cash flow as reasons for the upgrade. T-Mobile US Inc. (NASDAQ:TMUS), along with Verizon (NYSE:VZ) and AT&T (NYSE:T), is also offering promotions on Apple’s new iPhone 16, which is expected to drive a strong upgrade cycle powered by AI advancements.

“Wells Fargo raised its T-Mobile price target to $230 per share from $200 and kept its overweight rating. The analysts cited prices increases and huge free cash flow. T-Mobile, like Verizon and AT&T, is offering deals on Apple’s new iPhone 16, in what’s expected to be a robust AI-driven device upgrade cycle.”

T-Mobile US Inc. (NASDAQ:TMUS) presents a strong investment case due to its leadership in 5G technology, impressive customer and revenue growth, and solid financial performance. T-Mobile US Inc. (NASDAQ:TMUS) stands out in the 5G market by offering the fastest speeds and the widest coverage in the U.S., which helps retain and attract customers. In Q2 2024, T-Mobile US Inc. (NASDAQ:TMUS) added 406,000 high-speed internet customers, surpassing its competitors and showing high demand. T-Mobile US Inc. (NASDAQ:TMUS) expects to add 5.4-5.7 million postpaid customers by year-end.

Financially, T-Mobile US Inc. (NASDAQ:TMUS) experienced a 54% increase in free cash flow year-over-year, reaching $4.4 billion, which has enabled substantial share buybacks and dividends, with $3 billion returned to shareholders so far in 2024. T-Mobile US Inc. (NASDAQ:TMUS) also raised its free cash flow forecast to $16.6-$17 billion, highlighting its strong cash generation and investor returns. With stock prices over $200 and analysts setting target prices around $228, T-Mobile US Inc. (NASDAQ:TMUS) financial strength, network leadership, and focus on shareholders make it an attractive investment in the telecom sector.