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T-Mobile (TMUS) Stock Moves -0.65%: What You Should Know

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In the latest trading session, T-Mobile (TMUS - Free Report) closed at $134.64, marking a -0.65% move from the previous day. This change was narrower than the S&P 500's 2.11% loss on the day. Meanwhile, the Dow lost 1.54%, and the Nasdaq, a tech-heavy index, lost 0.3%.

Coming into today, shares of the wireless carrier had lost 5.86% in the past month. In that same time, the Computer and Technology sector lost 10.31%, while the S&P 500 lost 8.19%.

T-Mobile will be looking to display strength as it nears its next earnings release. 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%. Meanwhile, our latest consensus estimate is calling for revenue of $20.13 billion, up 2.71% from the prior-year quarter.

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. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.95% lower. 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 61.02 right now. For comparison, its industry has an average Forward P/E of 22.29, which means T-Mobile is trading at a premium to the group.

We can also see that TMUS currently has a PEG ratio of 2.29. 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. Wireless National stocks are, on average, holding a PEG ratio of 1.87 based on yesterday's closing prices.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 42% 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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