In the latest trading session, T-Mobile (TMUS) closed at $124.28, marking a -1.77% move from the previous day. This move was narrower than the S&P 500's daily loss of 3.25%. Elsewhere, the Dow lost 2.42%, while the tech-heavy Nasdaq lost 0.48%.
Prior to today's trading, shares of the wireless carrier had gained 1.02% over the past month. This has outpaced the Computer and Technology sector's loss of 5.7% and the S&P 500's loss of 5.62% in that time.
T-Mobile will be looking to display strength as it nears its next earnings release. On that day, T-Mobile is projected to report earnings of $0.57 per share, which would represent a year-over-year decline of 26.92%. Our most recent consensus estimate is calling for quarterly revenue of $20.19 billion, up 1.22% from the year-ago period.
TMUS's full-year Zacks Consensus Estimates are calling for earnings of $2.95 per share and revenue of $81.79 billion. These results would represent year-over-year changes of +13.9% and +2.12%, respectively.
Any recent changes to analyst estimates for T-Mobile should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 4.87% higher. T-Mobile currently has a Zacks Rank of #3 (Hold).
In terms of valuation, T-Mobile is currently trading at a Forward P/E ratio of 42.91. This valuation marks a premium compared to its industry's average Forward P/E of 29.05.
Meanwhile, TMUS's PEG ratio is currently 1.5. 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 1.88 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 106, which puts it in the top 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.