Is T-Mobile US Stock Underperforming the Nasdaq?

TMUS +0.41% ^IXIC +0.82% DTEGF -1.62%

With a market cap of $231.9 billion, T-Mobile US, Inc. (TMUS) is a leading national wireless service provider offering voice, messaging, data, and high-speed internet services across the United States, Puerto Rico, and the U.S. Virgin Islands. Headquartered in Bellevue, Washington, T-Mobile is a subsidiary of Deutsche Telekom AG and a pioneer in 5G network deployment.

Companies worth more than $200 billion are generally labeled as “mega-cap” stocks and T-Mobile US fits this criterion perfectly. Operating under the T-Mobile, Metro by T-Mobile, and Mint Mobile brands, the company provides wireless devices, accessories, and financing solutions through retail stores, apps, and third-party distributors.

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Shares of T-Mobile US have dipped 25.2% from its 52-week high of $276.49. The stock has fallen 17.8% over the past three months, lagging behind the Nasdaq Composite’s ($NASX) 7.4% gain over the same time frame.

In the longer term, TMUS stock is down 6.3% on a YTD basis, underperforming NASX’s 19.2% return. Moreover, shares of the wireless carrier have decreased 13.8% over the past 52 weeks, compared to NASX’s 20.8% increase over the same time frame.

The stock has been trading below its 50-day and 200-day moving averages since early September.

Despite beating expectations with Q3 2025 adjusted EPS of $2.59 and revenue of $21.96 billion, TMUS shares fell 3.3% on Oct. 23. Reported GAAP EPS was only $2.41, dragged down by a sizable $208 million impairment expense, and cash purchases of property and equipment jumped 35% to $2.6 billion. T-Mobile also raised 2025 capital expenditure guidance to ~$10 billion (an increase of $500 million).

In comparison, TMUS stock has outpaced its rival, AT&T Inc. (T). AT&T stock has soared nearly 12% over the past 52 weeks and 13.6% on a YTD basis.

Despite the stock’s underperformance, analysts remain moderately optimistic on TMUS. The stock has a consensus rating of “Moderate Buy” from the 29 analysts covering the stock, and the mean price target of $274.65 is a premium of 32.7% to current levels.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com