AT&T (T) shares have risen by 42% over the past year, driven by strategic changes within the company. AT&T CEO John Stankey announced plans to return over $40 billion to shareholders through dividends and stock buybacks over the next three years, along with a forecast for double-digit profit growth by 2027.

AT&T is focusing on the development of 5G infrastructure and fiber-optic networks, aiming to accelerate sales and profit growth. Since the spin-off of WarnerMedia in 2022, the company has prioritized reducing its debt, which has now decreased to $126 billion.

Meanwhile, T-Mobile (TMUS) shares have surged by 52% this year. Under the leadership of CEO Mike Sievert, the company is targeting a 5% annual growth in service revenue through 2027 and an increase in operating profit by $10 billion. T-Mobile also announced $50 billion in stock buybacks and dividends.

The company’s strategy includes acquiring assets such as Metronet and US Cellular to strengthen its market position. T-Mobile’s stock is valued at a P/E ratio of 22, which analysts consider justified given its growth potential.

Both companies are focused on enhancing shareholder value and avoiding unprofitable ventures, leading to impressive market performance.