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

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In the latest trading session, T-Mobile (TMUS - Free Report) closed at $135.05, marking a -1.26% move from the previous day. This change lagged the S&P 500's 0.84% loss on the day. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.12%.

Heading into today, shares of the wireless carrier had lost 5.89% over the past month, outpacing the Computer and Technology sector's loss of 13.48% and the S&P 500's loss of 10.24% in that time.

Wall Street will be looking for positivity from T-Mobile as it approaches its next earnings report date. In that report, analysts expect T-Mobile to post earnings of $0.69 per share. This would mark year-over-year growth of 25.45%. Our most recent consensus estimate is calling for quarterly revenue of $20.13 billion, up 2.71% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.22 per share and revenue of $81.11 billion. These totals would mark changes of -14.29% and +1.27%, 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.98% lower. T-Mobile is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, T-Mobile currently has a Forward P/E ratio of 61.61. For comparison, its industry has an average Forward P/E of 22.99, which means T-Mobile is trading at a premium to the group.

Investors should also note that TMUS has a PEG ratio of 2.12 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. The Wireless National industry currently had an average PEG ratio of 1.92 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 95, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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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