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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 $141.15 in the latest trading session, marking a -0.1% move from the prior day. This change lagged the S&P 500's daily gain of 0.76%. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq lost 0.98%.

Prior to today's trading, shares of the wireless carrier had lost 6.41% over the past month. This has lagged the Computer and Technology sector's loss of 3.99% and the S&P 500's loss of 3.91% 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 $1.47 per share, which would represent year-over-year growth of 157.89%. Our most recent consensus estimate is calling for quarterly revenue of $20.23 billion, up 0.54% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.63 per share and revenue of $81.45 billion, which would represent changes of +221.84% and +2.36%, respectively, from the prior 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.

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. The Zacks Consensus EPS estimate has moved 1% higher within the past month. T-Mobile is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that T-Mobile has a Forward P/E ratio of 21.3 right now. For comparison, its industry has an average Forward P/E of 27.86, which means T-Mobile is trading at a discount to the group.

We can also see that TMUS currently has a PEG ratio of 0.67. 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 1.95 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 231, which puts it in the bottom 9% 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.

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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