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TMUS Achieves WEA Test Success Via Satellite: Will the Stock Benefit?

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T-Mobile US, Inc. (TMUS - Free Report) recently achieved a milestone by successfully conducting a wireless emergency alert (WEA) in the United States for the first time, using SpaceX’s Starlink satellites. 

T-Mobile initiated the test alert earlier this month for a hypothetical evacuation notice. The alert was sent 217 miles into space where it was received by one of the Starlink direct-to-smartphone satellites in low-earth orbit. Per the company, the satellite functioned as a cell tower in space and broadcasted the alert to a specific geographic area impacted by the notice through T-Mobile’s smartphone.

The life-saving benefits of satellite-enabled WEAs are immense. It is expected to deliver critical emergency alerts to underserved areas, including 500,000 square miles of lightly populated mountainous land across the country, even when people are off the cellular network grid.

Will TMUS Stock Benefit From the Trial?

T-Mobile’s lowest multi-server latency significantly reduces network delays and accelerates application response times. By integrating Starlink’s direct-to-smartphone capabilities with its industry-leading wireless network, T-Mobile is likely to mitigate the issues of mobile dead zones where legacy cell signals cannot reach. It will also likely eliminate the need for high-end satellite phones.

The companies, with more than 175 direct-to-smartphone satellites in low-earth orbit, are actively testing satellite-to-smartphone service and plan to conduct further beta testing before a commercial launch. The ongoing addition of more satellites through future SpaceX launches will likely enhance the coverage area, extending wireless connectivity even to the most remote regions. These advancements will likely generate incremental demands for T-Mobile’s services, leading to higher revenues.

TMUS’ Stock Price Performance

Shares of T-Mobile have gained 40.3% over the past year compared with the industry’s growth of 36.9%.

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TMUS’ Zacks Rank and Key Picks

T-Mobile currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the broader industry have been discussed below.

Ubiquiti Inc. (UI - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. The company offers a comprehensive suite of networking products and solutions for service providers and enterprises. Its highly flexible global business model remains apt to adapt to the changing market dynamics to overcome challenges while maximizing growth. You can see the complete list of today’s Zacks #1 Rank stocks here.

Its excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. The company’s effective management of its strong global network of more than 100 distributors and master resellers improved its UI’s visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 4.19%.

Workday Inc. (WDAY - Free Report) carries a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 7.36%. WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. 

Airgain, Inc. (AIRG - Free Report) currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 35%.

Based in San Diego, CA, Airgain provides antenna products as integrated wireless solutions. These devices are designed to address vital connectivity requirements during product development and throughout the entire lifecycle of other industries, such as automotive and consumer, in addition to various sectors within an enterprise.


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