Analyst says wireless customers are embracing T-Mobile and have a “lower perception of Verizon”

The industry will start reporting first-quarter earnings next week giving Wall Street its first look at how things are going for wireless carriers in 2023. T-Mobile is expected to capture the lion’s share of net new postpaid phone customer additions. That is perhaps the most important category that is reported by these companies. Wells Fargo expects T-Mobile to report the addition of 560,000 net new postpaid phone customers which it says will be the best results among the big three (Verizon, AT&T, T-Mobile).

While Main Street seems to continuing its embrace of T-Mobile, Wall Street is as well. T-Mobile’s closing price on Tuesday of 149.51 is close to the 52-week high of $154.38. Verizon Communications (VZW), which includes all of Verizon’s businesses, trades at $39.20 closer to its 52-week low of $34.55. Even more telling, while T-Mobile trades at over 64 times earnings, Verizon trades at only 7.75 times earnings. That means that investors are putting more value on each dollar that hits the bottom line at T-Mobile.