T-Mobile’s Wireless Expansion
Investor eyes are on T-Mobile and Qualcomm as both stocks surge to new heights, with T-Mobile acquiring U.S. Cellular’s wireless operations for a hefty $4.4 billion. The move bolsters T-Mobile’s position as the largest wireless provider based on market capitalization at $194.53 billion.
Qualcomm’s AI Initiatives
Qualcomm paves the way in artificial intelligence with its power-efficient AI technologies and the Qualcomm AI Hub, a platform offering a range of pre-optimized AI models. Sales are expected to climb 6% in fiscal year 2024 and another 9% in 2025, driving annual earnings up 17% and 10% in those respective years.
Valuation & Dividend Comparison
T-Mobile and Qualcomm hit fresh 52-week highs, trading at $168 and $217 per share, respectively. While T-Mobile’s stock is priced at 18.4X forward earnings, Qualcomm sits at 21.3X – both below the S&P 500’s valuation of 22.2X. Additionally, both companies offer annual dividend yields slightly above 1.5%, outperforming the S&P 500’s 1.27% yield.
Outlook
T-Mobile and Qualcomm’s stocks hold a Zacks Rank #3 (Hold), indicating potential for long-term investment rewards. However, prudent investors may seek better entry points following the recent impressive rally in both stocks over the past year.
Where Will Stocks Go…
If Biden Wins? If Trump Wins?
The stock market has historically thrived regardless of the election outcome, with the bullish trend persisting through various party victories since 1950.
As you make investment decisions in this dynamic landscape, consider the growth potential and stability offered by T-Mobile and Qualcomm amidst the changing tides of the market.
