T-Mobile (TMUS) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, T-Mobile (TMUS) closed at $125.69, marking a -0.22% move from the previous day. This change lagged the S&P 500's daily gain of 1.13%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 0.87%.
Prior to today's trading, shares of the wireless carrier had gained 1.61% over the past month. This has outpaced the Computer and Technology sector's gain of 1.42% and lagged the S&P 500's gain of 2.65% in that time.
T-Mobile will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.52, down 43.48% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $20.25 billion, up 2.51% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.52 per share and revenue of $82.23 billion. These totals would mark changes of -2.7% and +2.67%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for T-Mobile. 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. 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. The Zacks Consensus EPS estimate has moved 5.95% lower within the past month. T-Mobile is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, T-Mobile currently has a Forward P/E ratio of 49.97. This represents a premium compared to its industry's average Forward P/E of 21.18.
Meanwhile, TMUS's PEG ratio is currently 9.99. 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 2.5 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 191, which puts it in the bottom 25% 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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TMobile US, Inc. (TMUS) : Free Stock Analysis Report
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