T-Mobile (TMUS) is one of the better-performing American telecom stocks these days.

The stock isn’t as generous in dividends as other stocks in the sector, but the company has invested heavily in infrastructure and strategic investments to deliver capital gains.

Warren Buffett has TMUS stock and Verizon stock (NYSE:). T-Mobile’s management team is a solid one with an excellent track record and a reputation for executing well. While it’s easy to give in and just go for the massive 7.7% dividend yield of AT&T (NYSE:), investors have a lot to gain by going with the high-growth T-Mobile, as it continues to grow in a competitive landscape.

I believe in TMUS stock. (See TMUS stock charts on TipRanks)

T-Mobile Pulls Back

Shares of TMUS have slid 13.9% off their 52-week high of $150.20. The latest quarter revealed that Verizon and AT&T are more than capable of playing catch-up.

T-Mobile’s growth was very encouraging, but showed some signs of weakness. T-Mobile continues to be a leading player in the 5G market, with more people adopting it. T-Mobile is not yet out of touch with its competitors.

Undoubtedly, the lack of a dividend does T-Mobile no favours, especially with AT&T outpacing it with over 100,000 more postpaid mobile additions in the second quarter (AT&T added over 750,000 versus T-Mobile’s 627,000).

It is fiercely competitive and may get even fiercer. T-Mobile could be able to stand out from the rest of its competitors due to greater financial flexibility and no dividend obligations.

Wall Street’s Take

According to TipRanks’ analyst rating consensus, TMUS stock comes in as a Strong Buy. 13 Buys are among 17 ratings. There are also three Holds.

The average TMUS price target is $168.71. The price targets of analysts range from $138 to $200 per share, with the lowest being around $138.71.

Bottom Line

T-Mobile isn’t going to appeal to everyone after its latest slide. T-Mobile is a growth-first company and has no dividend.

T-Mobile stock is the best option for those looking to enjoy year-long upside.

Disclosure: Joey Frenette did not hold shares of the mentioned companies at publication.

Disclaimer: Information contained within this article does not necessarily reflect those of TipRanks. TipRanks cannot guarantee the reliability, completeness or accuracy of any information. The article does not constitute a solicitation or recommendation to buy or sell securities. The article does not provide legal, financial, investment, or professional advice. It also doesn’t take into consideration the individual needs or requirements. Neither is the information contained in it a complete or comprehensive statement about the subject or issues discussed. TipRanks or its affiliates are not responsible for the contents of this article. Any action you take based on the information is your responsibility. TipRanks’ or any affiliates does not endorse this article or make it a recommendation. The past performance of TipRanks or its affiliates is not an indication of future prices, results, or performances.