Wells Fargo’s Tech Stocks To Beat The S&P: 14 Top AI & Non-AI Stocks

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

Number of Hedge Fund Holders In Q3 2024: 66

NTM EPS Estimate: $10.41

T-Mobile US, Inc. (NASDAQ:TMUS) is one of the largest telecommunications carriers in the US. As a result, the firm’s hypothesis is dependent on its ability to retain and grow its users as well as roll out new technologies and grow the revenue that it earns from existing users. These days, T-Mobile US, Inc. (NASDAQ:TMUS) is firing on two fronts. Firstly, the firm is aggressively targeting the 5G market which had been placed on the back burner due to the uncertainty during the coronavirus pandemic and the resulting two-decade high interest rate environment in the US. T-Mobile US, Inc. (NASDAQ:TMUS)’s third quarter saw the firm add 865,000 postpaid customers on the back of its 5G plans to signal the firm’s growing presence in the 5G market. On the second front, it has partnered up with SpaceX to use the Starlink satellite internet constellation to provide coverage in areas that might otherwise be inaccessible. These two strategies can prove to be long-term value creators for T-Mobile US, Inc. (NASDAQ:TMUS).

During the Q3 2024 earnings call, T-Mobile US, Inc. (NASDAQ:TMUS)’s management shed light on its 5G strategies. Here is what they said:

“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.”