NEW YORK (TheStreet) -- Shares of T-Mobile US (TMUS) are slightly higher at $27.08 in pre-market trade after the Wall Street Journal's "Heard on the Street" column said the wireless carrier is positioned for a rebound after a difficult 2014.
"Despite adding millions of new customers while becoming more profitable--two of the primary metrics that have historically driven telecom stocks--the wireless carrier's shares have fallen 20% since the beginning of the year," the Journal said.
Further, the column added that "partly to blame is the dissolution due to regulatory risk of a well-publicized plan by Sprint (S) to make an offer for T-Mobile. But other forces, including general bearishness around a highly competitive U.S. wireless industry and skepticism over the sustainability of T-Mobile's business model, seem to be holding it back."
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The Journal pointed out that "T-Mobile trades at 5.9 times 2015 estimates for earnings before interest, taxes, depreciation and amortization versus 6.8 times for Sprint and 6.6 for Verizon (VZ) . Only AT&T (T) , whose Ebitda is expected to fall in 2014, trades at the same multiple as T-Mobile. Yet T-Mobile's Ebitda is expected to grow by about 3.5% this year and by 28% in 2015. AT&T's Ebitda is seen rising 2.7% in 2015. T-Mobile also added a net 3.6 million postpaid subscribers in the first nine months of 2014 compared with a net 2.4 million for AT&T."