T-Mobile (TMUS) Gains But Lags Market: What You Should Know
T-Mobile (TMUS) closed the most recent trading day at $83.12, moving +1.71% from the previous trading session. The stock lagged the S&P 500's daily gain of 3.35%. Elsewhere, the Dow gained 3.19%, while the tech-heavy Nasdaq added 3.62%.
Heading into today, shares of the wireless carrier had lost 10.43% over the past month, outpacing the Computer and Technology sector's loss of 12.32% and the S&P 500's loss of 14.37% in that time.
TMUS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.07, down 8.55% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.56 billion, up 4.3% from the year-ago period.
TMUS's full-year Zacks Consensus Estimates are calling for earnings of $4.55 per share and revenue of $47.37 billion. These results would represent year-over-year changes of +13.18% and +5.28%, respectively.
Investors should also note any recent changes to analyst estimates for TMUS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. TMUS is currently a Zacks Rank #3 (Hold).
Looking at its valuation, TMUS is holding a Forward P/E ratio of 17.96. This represents a no noticeable deviation compared to its industry's average Forward P/E of 17.96.
Meanwhile, TMUS's PEG ratio is currently 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless National industry currently had an average PEG ratio of 1.51 as of yesterday's close.
The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow TMUS in the coming trading sessions, be sure to utilize Zacks.com.
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T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report
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