We recently compiled Jim Cramer’s Game Plan: A List of 23 Stocks to Watch. In this article, we’ll take a look at where T-Mobile US, Inc. (NASDAQ:TMUS) stands compared to other notable stocks, according to Jim Cramer.
As Wall Street enters the midst of earnings season, Jim Cramer provides insight into market trends and the earnings reports to watch next week. Mr. Kramer said:
“Incredibly, this market has been rising for six straight weeks. Yes, both candidates have already borrowed an untold amount, even though interest rates have been rising since mid-September.” Even though we’re on the brink of an election that’s going to rack up trillions of dollars, this market just can’t seem to help itself get any higher.”
Mr. Cramer emphasized the influence of the Federal Reserve, noting that the market has generally been on an uptrend since the Sept. 18 interest rate cut. He emphasized that the Fed is not alone in driving this bullish mood, and that earnings season has produced some notable quarterly results. As banks’ strong performance marks the start of the earnings cycle, Cramer raises the question of whether the bull market could extend to a seventh consecutive week and suggests following a strategy to assess that possibility. did.
Separately, on economic data, Cramer cautioned that if the economy continues to post strong numbers, the chances of a significant rate cut will become less likely. Although he believes interest rates will eventually fall, he cautioned that those shorting U.S. Treasuries may be making a mistake.
Cramer pointed to the important caveat of the upcoming election, noting that both candidates are advocating policies that could cause inflation.
“Both candidates are pushing policies that have the potential to cause inflation. As I said at the beginning, if Mr. Trump can win a large enough majority to pass huge tariffs, or if Ms. Harris can get a big enough majority to pass huge tariffs, or if Ms. Harris Expanding subsidies and de facto subsidies could raise housing prices. That could bring back inflation. But I’m not betting on that. I think they’re afraid of being held responsible for the inflation that almost single-handedly sank the president’s presidency. No matter how the candidates run their campaigns, their allies in Congress. Beyond the usual reluctance to try to balance the budget, I don’t think we’re risking inflation.”
He concludes that those betting on U.S. Treasuries have gone too far, suggesting that their efforts to counter Fed policy are unlikely to succeed. Kramer observed that when a large number of investors align with one side of a trade, as we are seeing now, that group often ends up with inaccurate results.
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our methodology
In this article, we have compiled a list of the 23 stocks that Jim Cramer featured on the October 18 episode of Mad Money. Stocks listed in ascending order of hedge fund sentiment as of the second quarter, extracted from insiders. Monkey’s database of over 900 hedge funds.
Why are we interested in stocks that hedge funds invest in? The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Learn more ).
A customer checks out a new device at a T-Mobile store. It shows the convenience and accessibility of retail stores.
Number of hedge fund holders: 64 people
Cramer noted the strong performance of T-Mobile US, Inc. (NASDAQ:TMUS) and recommended buying half of the position before the quarterly report is released and the other half after the quarterly report is released.
“One of the companies that has been on a winning streak is T-Mobile, and they are reporting after the close. Can they continue their winning streak? T-Mobile’s performance has been very impressive…quarterly I might buy half before the report and half after.”
T-Mobile US (NASDAQ:TMUS) is a significant player in the mobile communications sector with a wide range of services including voice, messaging and data offerings. In addition to communications services, the company offers a wide range of wireless devices and accessories, and equipment installment plan financing options further complement its offerings.
The company recently announced a significant increase in its dividend, which will now be $0.88 per share every quarter, a significant 35% increase. Additionally, management has expressed expectations for consistent double-digit dividend growth over the next few years.
On October 21, Citi analyst Michael Rollins raised his price target on T-Mobile US (NASDAQ:TMUS) from $210 to $254, calling it a “buy” as it prepares for its third quarter earnings report. maintained its rating. This revision suggests strong confidence in the company’s ability to gain market share in areas with low penetration rates. The analyst emphasized that the company is likely to focus on balancing volume and average revenue per user (ARPU) to maintain service revenue growth.
Furthermore, the company’s entry into the fiber business is seen as a promising avenue to improve long-term financial performance, contributing to a stable revenue trajectory and higher annual EBITDA growth.
Overall, TMUS ranks No. 8 on Jim Cramer’s list of stocks to watch. While we see the potential of TMUS as an investment, we believe AI stocks are more likely to deliver higher returns and do so in a shorter time frame. If you’re looking for an AI stock that has a better future than TMUS but trades at less than 5x earnings, check out our report on the cheapest AI stocks.
Read next: BlackRock’s 8 Best Widemot Stocks to Buy Now and 30 Most Important AI Stocks.
Disclosure: None. This article was originally published on Insider Monkey.
