T-Mobile (TMUS) closed the most recent trading day at $101.13, moving +0.96% from the previous trading session. This change lagged the S&P 500's 2.62% gain on the day. Meanwhile, the Dow gained 3.16%, and the Nasdaq, a tech-heavy index, added 2.06%.
TMUS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.37, down 71.32% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.95 billion, up 63.53% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.84 per share and revenue of $73.30 billion. These totals would mark changes of -29.35% and +62.89%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for TMUS. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 5.82% higher. TMUS currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note TMUS's current valuation metrics, including its Forward P/E ratio of 35.33. This represents a premium compared to its industry's average Forward P/E of 21.6.
It is also worth noting that TMUS currently has a PEG ratio of 1.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Wireless National industry currently had an average PEG ratio of 1.87 as of yesterday's close.
The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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TMobile US, Inc. (TMUS) : Free Stock Analysis Report
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