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T-Mobile (TMUS) Dips More Than Broader Markets: What You Should Know

T-Mobile (TMUS) closed the most recent trading day at $139.95, moving -0.76% from the previous trading session. This move lagged the S&P 500's daily loss of 0.72%. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.27%.

Coming into today, shares of the wireless carrier had lost 3.98% in the past month. In that same time, the Computer and Technology sector lost 14.29%, while the S&P 500 lost 9.06%.

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 $0.69, up 25.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.13 billion, up 2.71% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.22 per share and revenue of $81.11 billion, which would represent changes of -14.29% and +1.27%, respectively, from the prior year.

It is also important to note the 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.98% lower. 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 63.52. For comparison, its industry has an average Forward P/E of 22.72, 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 2.19. 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 1.96 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 99, which puts it in the top 40% 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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