T-Mobile is Yahoo Finance Plus’ investment idea of the day

Yahoo Finance’s Jared Blikre reports details on Yahoo Finance’s Investment idea of the day.

Video Transcript

ALEXIS CHRISTOFOROUS: All right, Jared. And I want to get to our Yahoo Finance Plus Investment Idea of the Day. I know it's a bullish call on T-Mobile. It looks like they did pretty well when it came to customer acquisition last quarter. At to who's expense, I guess, is the question.

JARED BLIKRE: Yeah, well, we do have a parent company potentially involved here. Let's see what Argus Research is saying about T-Mobile-- now saying that they have a bullish call in it. And they're raising their target to $165 after the results. So another strong quarter in the second quarter with industry-leading subscriber acquisitions, solid revenue, and profit growth. We view the T-Mobile-Sprint merger as a long-term positive, believing that it will strengthen the company's competitive position relative to Verizon, AT&T.

And they're raising their price target or-- excuse me, their 2021 EPS estimate, and also saying the management has provided little guidance for 2021. We've kind of noticed that's a trend among a lot of companies here, not the best. But our estimates imply 23% EPS growth on average over the next two years. Our long-term EPS growth rate forecast is 10%.

Well, now, we're drawing on it. Nevertheless, we see the stock is up 31%, 32%, and pretty close to its record highs here over the last year.

KRISTEN MYERS: All right, thanks so much, Jared. We'll see you at the half hour for a look at those energy markets.