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).
The Moving Average Convergence Divergence (MACD) for TMUS turned positive on April 19, 2024. Looking at past instances where TMUS's MACD turned positive, the stock continued to rise in of 54 cases over the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 19, 2024. You may want to consider a long position or call options on TMUS as a result. In of 100 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
TMUS moved above its 50-day moving average on April 19, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TMUS advanced for three days, in of 343 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 265 cases where TMUS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for TMUS moved out of overbought territory on April 25, 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 36 similar instances where the indicator moved out of overbought territory. In of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 10-day moving average for TMUS crossed bearishly below the 50-day moving average on March 22, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
TMUS broke above its upper Bollinger Band on April 23, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
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 83, 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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 slightly overvalued 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 (5.048). P/E Ratio (23.473) is within average values for comparable stocks, (144.473). Projected Growth (PEG Ratio) (0.824) is also within normal values, averaging (9.572). Dividend Yield (0.008) settles around the average of (0.091) among similar stocks. P/S Ratio (2.486) is also within normal values, averaging (13.029).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of wireless voice, messaging and data services
Industry WirelessTelecommunications