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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 the most recent trading day at $137.37, moving +1.26% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.92%. At the same time, the Dow added 2.15%, and the tech-heavy Nasdaq gained 0.16%.

Prior to today's trading, shares of the wireless carrier had gained 9.16% over the past month. This has outpaced the Computer and Technology sector's gain of 2.35% and the S&P 500's gain of 1.54% in that time.

Investors will be hoping for strength from T-Mobile as it approaches its next earnings release. On that day, T-Mobile is projected to report earnings of $0.42 per share, which would represent a year-over-year decline of 46.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.17 billion, up 1.12% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.75 per share and revenue of $81.73 billion. These totals would mark changes of +6.18% and +2.04%, respectively, from last year.

Any recent changes to analyst estimates for T-Mobile should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 6.81% lower within the past month. 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 49.37 right now. For comparison, its industry has an average Forward P/E of 26.67, which means T-Mobile is trading at a premium to the group.

Investors should also note that TMUS has a PEG ratio of 1.73 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TMUS's industry 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 174, putting it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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