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T-Mobile (TMUS) Stock Sinks As Market Gains: What You Should Know

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T-Mobile (TMUS - Free Report) closed at $145.12 in the latest trading session, marking a -0.01% move from the prior day. This change lagged the S&P 500's 1.89% gain on the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 10%.

Prior to today's trading, shares of the wireless carrier had gained 4.02% over the past month. This has outpaced the Computer and Technology sector's gain of 4.01% and the S&P 500's gain of 2.3% in that time.

Investors will be hoping for strength from T-Mobile as it approaches its next earnings release, which is expected to be February 1, 2023. The company is expected to report EPS of $1.10, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $20.89 billion, up 0.52% from the year-ago period.

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. 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.

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 0.93% lower. T-Mobile currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that T-Mobile has a Forward P/E ratio of 22.1 right now. For comparison, its industry has an average Forward P/E of 25.59, which means T-Mobile is trading at a discount to the group.

Meanwhile, TMUS's PEG ratio is currently 0.82. 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. Wireless National stocks are, on average, holding a PEG ratio of 1.14 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 162, putting it in the bottom 36% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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