Telecom Giants AT&T and T-Mobile Thrive Amid Market Uncertainty

Telecom Stocks Surge: Uncertainty in the U.S. economy has caused turmoil in the stock market, yet telecom giants AT&T and T-Mobile are experiencing significant growth, making them potential investment opportunities.

Date: 27-03-2025

AI Rating: 7

Market Performance
AT&T and T-Mobile US have performed well in an uncertain economic environment, with both companies' shares surging nearly 60% over the last year. This performance reflects the stability of the telecom sector amidst broader market volatility.
Revenue Growth
AT&T reported mobile service sales growth of 3.5% year-over-year in 2024, bringing in $65.4 billion which is a vital segment of its total revenue of $122.3 billion. The company forecasts a minimum of 2% revenue growth for mobile services in 2025, indicating positive momentum moving forward.
T-Mobile also exhibited strong financial health, with revenue rising 3.6% year-over-year to $81.4 billion in 2024. This included significant service sales growth of 4.6% year-over-year to $66.2 billion.
Free Cash Flow (FCF)
AT&T's projected free cash flow growth of $1 billion annually up to 2027, from a 2024 base of $14.1 billion, shows its ability to generate cash for operations and dividends.
T-Mobile's adjusted free cash flow grew significantly by 25% year-over-year to $17 billion in 2024, with expectations to maintain this level, indicating a secure dividend amidst company growth.
Earnings Per Share (EPS)
T-Mobile reportedly has a consistently superior earnings per share (EPS) compared to AT&T, which has shown inconsistency due to its business transition. However, AT&T aims to grow its EPS from 2025 to 2027, showing a potential for improvement in this area.
In conclusion, both companies are well-positioned in the telecom market, with favorable growth forecasts, strong cash flow, and resilient earnings metrics, indicating a positive sentiment for investors considering these stocks.

Stocks: T TMUS