5 Best Stocks to Buy According to Billionaire Daniel Sundheim

3. T-Mobile US, Inc. (NASDAQ: TMUS)

Sundheim’s Stake Value: $594,000,000
Percentage of Daniel Sundheim’s 13F Portfolio: 4.39%
Number of Hedge Fund Holders: 98

T-Mobile US, Inc. (NASDAQ: TMUS) and its subsidiaries offer mobile communication services in the United States, Puerto Rico, and the US Virgin Islands. The company was founded in 1994 and ranks third in the list of 10 best stocks to buy according to billionaire Daniel Sundheim. In addition, shares of the company rallied 28% in the last 12 months, resulting in a $134.7 billion market capitalization.

On August 2, Deutsche Bank analyst Bryan Kraft raised the price target on T-Mobile to $195 from $188 and kept a “Buy” rating on the shares after “powerful” second quarter results. On July 29, T-Mobile US, Inc. (NASDAQ: TMUS) posted earnings for the second quarter of 2021. It announced earnings per share of $0.78, beating market predictions by $0.29. In addition, the revenue for the first three months of 2021 was over $20 billion, beating the estimates by $610 million. 

The stock is a new arrival on Daniel Sundheim’s portfolio, as his hedge fund bought about 4.74 million shares worth over $594 million, representing 4.39% of their portfolio. 

ClearBridge Investments, in its fourth-quarter 2020 investor letter, mentioned T-Mobile US, Inc. (NASDAQ: TMUS). Here is what the fund said:

“The portfolio’s quality bias and valuation discipline have generated compelling returns over time with typically strong relative results in more challenging environments as it did through the first three quarters of 2020. However, that same quality bias tends to create a more challenging relative performance environment for the Strategy during periods of sharp economic acceleration, which tend to benefit stocks that are more commodity linked or of lower quality. This has been the case during the vaccine- and stimulus-driven rally experienced late last year and during the most recent quarter. Sectors that lagged in the quarter included communication services, where T-Mobile trailed after generating robust returns earlier in the recovery.”