Yahoo Finance T-Mobile (TMUS) Gains As Market Dips: What You Should Know
T-Mobile (TMUS) closed the most recent trading day at $133.17, moving +1.14% from the previous trading session. This change outpaced the S&P 500's 0.13% loss on the day. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, added 0.14%.
Prior to today's trading, shares of the wireless carrier had gained 1.9% over the past month. This has outpaced the Computer and Technology sector's loss of 2.49% and the S&P 500's loss of 3.32% 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 $0.57, down 26.92% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.19 billion, up 1.22% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.95 per share and revenue of $81.79 billion, which would represent changes of +13.9% and +2.12%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for T-Mobile. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.87% higher. T-Mobile is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that T-Mobile has a Forward P/E ratio of 44.66 right now. Its industry sports an average Forward P/E of 27.8, so we one might conclude that T-Mobile is trading at a premium comparatively.
Also, we should mention that TMUS has a PEG ratio of 1.56. 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. TMUS's industry had an average PEG ratio of 1.89 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 98, which puts it in the top 39% 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.
To follow TMUS in the coming trading sessions, be sure to utilize Zacks.com.
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