UBS’ Top Quant Stocks In AI, IT, Healthcare & Other Sectors: Top 33 Stocks In All Sectors

3.  T-Mobile US, Inc. (NASDAQ:TMUS)

Number of Hedge Fund Investors In Q2 2024: 64

Sector: Communication Services

T-Mobile US, Inc. (NASDAQ:TMUS) is one of the three mega telecommunications carriers in the US. Consequently, its narrative depends on its average revenue per user, subscriber growth, and growth in broadband users. T-Mobile US, Inc. (NASDAQ:TMUS) benefits from robust financial performance and has one of the highest free cash flow margins in the industry. Additionally, the firm has also kept its focus on the future and partnered up with SpaceX to offer direct-to-cell coverage via the latter’s Starlink satellites. This service was offered to users for free during Hurricane Helene, and T-Mobile US, Inc. (NASDAQ:TMUS) could potentially expand its partnership with SpaceX to include broadband internet as well. The firm is already establishing a comfortable lead for itself in the 5G market too. T-Mobile US, Inc. (NASDAQ:TMUS)’s third quarter saw it add 865,000 postpaid customers as its premium 5G plans resonated well with customers.

T-Mobile US, Inc. (NASDAQ:TMUS)’s management shared key details for its postpaid users during the Q3 2024 earnings call:

“So let me provide a quick update on our expectations for 2024. Starting with customers, we are once again raising total postpaid customer net additions and now expect between $5.6 million and $5.8 million, up $150,000 at the midpoint relative to our prior guide. We now expect the postpaid phone customer net additions component of that total to be approximately 3 million for the full year. We expect our full year postpaid ARPA to be up around 3% year-over-year with industry-leading service revenue growth continuing to accelerate at a higher rate in 2024 than we delivered in 2023.”