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In the latest trading session, T-Mobile (TMUS) closed at $130.51, marking a -1.89% move from the previous day. This change was narrower than the S&P 500's daily loss of 2.91%. At the same time, the Dow lost 2.73%, and the tech-heavy Nasdaq lost 0.25%.
Coming into today, shares of the wireless carrier had gained 7.25% in the past month. In that same time, the Computer and Technology sector lost 0.39%, while the S&P 500 gained 0.84%.
Wall Street will be looking for positivity from T-Mobile as it approaches its next earnings report date. The company is expected to report EPS of $0.57, down 26.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.19 billion, up 1.22% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.95 per share and revenue of $81.79 billion. These totals would mark changes of +13.9% and +2.12%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for T-Mobile. 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. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.87% higher. T-Mobile is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note T-Mobile's current valuation metrics, including its Forward P/E ratio of 45.12. For comparison, its industry has an average Forward P/E of 30.32, which means T-Mobile is trading at a premium to the group.
It is also worth noting that TMUS currently has a PEG ratio of 1.58. 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 1.96 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 206, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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