If You Invested $1000 in T-Mobile a Decade Ago, This is How Much It'd Be Worth Now

For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.What if you'd invested in T-Mobile (TMUS) ten years ago? It may not have been easy to hold on to TMUS for all that time, but if you did, how much would your investment be worth today?T-Mobile's Business In-DepthWith that in mind, let's take a look at T-Mobile's main business drivers. Founded in 1994 and headquartered in Bellevue, WA, T-Mobile US, Inc. is a national wireless service provider. The company offers its services under the T-Mobile, Metro by T-Mobile and Sprint brands. T-Mobile, through its subsidiaries, provides wireless services for branded postpaid and prepaid, and wholesale customers.The company was formed after the merger of T-Mobile USA Inc. and MetroPCS Communications Inc. Deutsche Telekom AG was the owner of the former T-Mobile USA Inc. Under the terms of the business combination with MetroPCS, Deutsche Telekom received shares of common stock representing a majority ownership interest in T-Mobile in exchange for its transfer of all of T-Mobile USA’s common stock.The company offers mobile voice, messaging and data services in the postpaid, prepaid and wholesale markets. T-Mobile is extensively deploying 5G and 4G LTE (Long-Term Evolution) networks. It also provides wireless devices, such as smartphones, tablets and other mobile communication devices and accessories manufactured by various suppliers. T-Mobile’s business largely depends on its “Un-carrier Value Proposition”, which aims to enhance customer satisfaction by means of providing latest products at cheaper rates and uncomplicated terms of conditions.T-Mobile mainly reports under the following two segments.Service (80.5% of total revenues in 2023): Includes wireless communication services to branded postpaid and branded prepaid customers through a variety of service plan options.Equipment (18%): Includes sale of devices to dealers and third-party distributors for resale through independent third-party retail outlets; while the balance accounts for Other (1.5%).T-Mobile recorded 5.7 million postpaid net customer additions and 3.1 million postpaid phone net customer additions in fiscal 2023. Moreover, the postpaid phone churn rate was at a record low level of 0.87% and high-speed Internet net customer additions totaled 2.1 million in fiscal 2023.Bottom LineWhile anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in T-Mobile ten years ago, you're probably feeling pretty good about your investment today.According to our calculations, a $1000 investment made in October 2014 would be worth $7,896.36, or a 689.64% gain, as of October 29, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.Compare this to the S&P 500's rally of 193.37% and gold's return of 114.50% over the same time frame.Going forward, analysts are expecting more upside for TMUS. T-Mobile reported impressive third-quarter 2024 results, with the bottom and top lines surpassing the Zacks Consensus Estimate. Solid demand for postpaid services drove the top line. In the third quarter, the company added 1.6 million postpaid net customers while postpaid net account additions were 315,000, both metrics being the best in the industry. Solid growth in free cash flow accentuates efficient capital management and implies that the company is well-positioned to invest in growth initiatives and pay debt and dividends. However, the highly competitive and saturated nature of the U.S. wireless market could adversely affect its financial results. Its strategy of introducing several promotional activities to outperform competition strains margin. Declining prepaid ARPU is a concern. We are reiterating our Neutral recommendation. The stock has jumped 10.39% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2024; the consensus estimate has moved up as well.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report T-Mobile US, Inc. (TMUS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks