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A New Favorite Stock From Top Managers

Several of our Ultimate Stock-Pickers put new money toward this name last quarter.

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Each quarter, we take a look at the recent transactions of some of the top money managers around today--who we call our Ultimate Stock-Pickers.

Last quarter, one stock in particular was a popular new-money buy among the group. What are new-money buys? Stocks that managers purchased that weren't in their portfolios the prior quarter.

T-Mobile topped the new-money purchase list with three funds buying into the firm despite not holding any positions in the company the prior quarter.

After its acquisition of Sprint in 2020, T-Mobile now matches the scale of its larger rivals AT&T and Verizon. With roughly 65 million postpaid and 21 million prepaid phone customers, T-Mobile provides service to nearly 30% of the retail wireless market. We think the company has recorded an impressive turnaround over the past several years. Despite initially lagging behind AT&T and Verizon and recording significant customer losses, T-Mobile was able to improve service, deploy new technologies, and provide better geographic coverage and capacity. These improvements resulted in significant customer growth for T-Mobile.

Despite the increased scale and improved cost position, Morningstar doesn't think T-Mobile has carved out an economic moat yet--though we do assign T-Mobile a positive moat trend. We think shares are worth $108 apiece.

Sector director Mike Hodel, associate analyst Malik Ahmed Khan, and analyst Eric Compton provided the research behind this segment.

Morningstar does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.