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T-Mobile (TMUS) Gains But Lags Market: What You Should Know

Zacks Equity Research
·3 min read

T-Mobile (TMUS) closed the most recent trading day at $130.01, moving +0.15% from the previous trading session. This move lagged the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 0.84%.

Coming into today, shares of the wireless carrier had gained 1.53% in the past month. In that same time, the Computer and Technology sector gained 5.17%, while the S&P 500 gained 2.12%.

Wall Street will be looking for positivity from TMUS as it approaches its next earnings report date. On that day, TMUS is projected to report earnings of $0.56 per share, which would represent a year-over-year decline of 35.63%. Our most recent consensus estimate is calling for quarterly revenue of $19.76 billion, up 66.36% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.68 per share and revenue of $70.28 billion, which would represent changes of -33.33% and +56.2%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for TMUS. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. TMUS is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, TMUS is currently trading at a Forward P/E ratio of 48.44. This valuation marks a premium compared to its industry's average Forward P/E of 15.97.

Meanwhile, TMUS's PEG ratio is currently 2.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Wireless National industry currently had an average PEG ratio of 2.94 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 96, putting it in the top 38% 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.

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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