T-Mobile isn't a slow growth utility.

T-Mobile is the highest growth Telecom company out of the oligopoly that is Verizon, T-Mobile and AT&T. Full year 2026 guidance was raised, and the company trades at a discounted 18x P/E ratio compared to the mid twenties it traded at in the past years. The average price target as of time of writing is $243.08, implying +40.23% upside from the current price.

The broader market treats the company as a slow-growth utility company operating in a saturated market. While the market is saturated, we assume the telecom industry will eventually go into a point where the three main competitors stop competing on price, and start competing on service and consumer-oriented features.

From an investor standpoint, the company utilizes its free cash flow to return value to shareholders via share repurchases and dividend payments. In Q1 2026 alone the company saw $4.9B in buybacks and $1.1B in dividends. We view 6G as a massive expansion opportunity for the carrier, along with upside from AI efficiencies and partnerships with Nvidia. The company’s expansion and investment into AI / broadband gives it meaningfully higher value from a growth standpoint than its more defensive peers.

We believe that revenue growth will remain muted, due to the nature of the telecom market. This is representative of how any mature company, especially one in a saturated telecom wireless market, will not be growing income increasingly at a high rate. We believe that the transition of the telecom industry to an oligopoly will boost the profitability of these companies into the future, but with limited upside. TMUS’s appeal comes from a mix of growth potential and dividend yield, of which it offers a 2.28% payout of the latter.

The main headwind that we believe is purely overstated fear is the market pricing in competition from SpaceX in consumer wireless markets. TMUS, declined on fears of disruption from SpaceX in the consumer wireless markets, something we do not see playing out in the future, as the capabilities of SpaceX are focused on orbital data-centers, not earth-bound carriers. Any notion that SpaceX will replace or meaningfully disrupt legacy wireless carriers is highly speculative and detracts from the already speculative goals of SpaceX itself.