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T-Mobile (TMUS) Gains But Lags Market: What You Should Know

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T-Mobile (TMUS - Free Report) closed at $137.09 in the latest trading session, marking a +0.85% move from the prior day. This change lagged the S&P 500's 3.06% gain on the day. At the same time, the Dow added 2.68%, and the tech-heavy Nasdaq lost 0.04%.

Coming into today, shares of the wireless carrier had gained 2.41% in the past month. In that same time, the Computer and Technology sector lost 3.41%, while the S&P 500 lost 4.31%.

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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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 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 46.1 right now. This represents a premium compared to its industry's average Forward P/E of 28.38.

Investors should also note that TMUS has a PEG ratio of 1.61 right now. 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. TMUS's industry had an average PEG ratio of 1.97 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 98, putting 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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