T-Mobile (TMUS, $73.78) Money: a solution for "unbanked" customers?
America’s No.3 wireless carrier, T-Mobile’s latest foray into a new banking product may be a solution for 8.4 million ‘unbanked’ households -- the 6.5% of the American population who not have access to a checking or a savings account.
T-Mobile Money is offering a new checking account to customers, especially those with post-paid subscriptions, which could eliminate over-drafting concerns that tag with traditional bank accounts. The service, available to anyone and not just its customers, will allow customers to go up to $50 in the red without incurring penalties as long as the account balance is positive within 30 days. The said account comes with no fees and requires no minimum balance. It’s also offering higher interest rates than traditional banks. The accounts are FDIC insured up to $250,000 and comes with an ATM card that can used free of charge at more than 55,000 in-network Allpoint ATMs worldwide.
The account is best suited to a T-Mobile post-paid customer who can get 4% APY on balances up to $3,000 and 1% APY on every dollar over $3,000 when they sign up with their T-Mobile ID and deposit at least $200 each month. Everyone else scores 1% APY on all balances.
These conditions are fairly modest and easy to comply especially at a time when over-drafting charges are a major concern in the U.S. In 2017, Americans paid $34 billion in overdraft charges. This is why many Americans are now shunning which serves as an opportunity for T-Mobile to launch this timely service. Its easy-to-use checking account optimized for mobile use with limited fees could be the key differentiator to make a good impression on the ‘unbanked’ and may also provide a stiff competition to the already established players like Bank of America (BAC), Wells Fargo (WFC), and JPM Chase (JPM).
TMUS in upward trend: price expected to rise as it breaks its lower Bollinger Band on December 09, 2024
TMUS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 36 cases where TMUS's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TMUS advanced for three days, in of 359 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 284 cases where TMUS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for TMUS moved out of overbought territory on December 02, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 44 similar instances where the indicator moved out of overbought territory. In of the 44 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on December 09, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on TMUS as a result. In of 92 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for TMUS turned negative on December 04, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TMUS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TMUS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.983) is normal, around the industry mean (4.726). P/E Ratio (23.473) is within average values for comparable stocks, (113.894). Projected Growth (PEG Ratio) (0.824) is also within normal values, averaging (8.093). Dividend Yield (0.008) settles around the average of (0.059) among similar stocks. P/S Ratio (2.486) is also within normal values, averaging (13.458).
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General Information
a provider of wireless voice, messaging and data services
Industry WirelessTelecommunications