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T-Mobile (TMUS) Gains But Lags Market: What You Should Know
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In the latest trading session, T-Mobile (TMUS - Free Report) closed at $139.96, marking a +0.66% move from the previous day. The stock lagged the S&P 500's daily gain of 0.75%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 10.36%.
Prior to today's trading, shares of the wireless carrier had lost 6.93% over the past month. This has was narrower than the Computer and Technology sector's loss of 8.72% and lagged the S&P 500's loss of 5.98% 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 $1.09 per share, which would represent a year-over-year decline of 0.91%. Meanwhile, our latest consensus estimate is calling for revenue of $20.94 billion, up 0.73% from the prior-year quarter.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 1.84% lower. T-Mobile is currently sporting a Zacks Rank of #5 (Strong Sell).
Digging into valuation, T-Mobile currently has a Forward P/E ratio of 21.16. Its industry sports an average Forward P/E of 23.54, so we one might conclude that T-Mobile is trading at a discount comparatively.
Also, we should mention that TMUS has a PEG ratio of 0.78. 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. The Wireless National was holding an average PEG ratio of 1.12 at yesterday's closing price.
The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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T-Mobile (TMUS) Gains But Lags Market: What You Should Know
In the latest trading session, T-Mobile (TMUS - Free Report) closed at $139.96, marking a +0.66% move from the previous day. The stock lagged the S&P 500's daily gain of 0.75%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 10.36%.
Prior to today's trading, shares of the wireless carrier had lost 6.93% over the past month. This has was narrower than the Computer and Technology sector's loss of 8.72% and lagged the S&P 500's loss of 5.98% 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 $1.09 per share, which would represent a year-over-year decline of 0.91%. Meanwhile, our latest consensus estimate is calling for revenue of $20.94 billion, up 0.73% from the prior-year quarter.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 1.84% lower. T-Mobile is currently sporting a Zacks Rank of #5 (Strong Sell).
Digging into valuation, T-Mobile currently has a Forward P/E ratio of 21.16. Its industry sports an average Forward P/E of 23.54, so we one might conclude that T-Mobile is trading at a discount comparatively.
Also, we should mention that TMUS has a PEG ratio of 0.78. 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. The Wireless National was holding an average PEG ratio of 1.12 at yesterday's closing price.
The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.