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T-Mobile (TMUS) Outperforms Broader Market: What You Need to Know

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The most recent trading session ended with T-Mobile (TMUS - Free Report) standing at $142.41, reflecting a +1.62% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.52% for the day. Elsewhere, the Dow saw an upswing of 0.4%, while the tech-heavy Nasdaq appreciated by 0.58%.

Shares of the wireless carrier have depreciated by 0.09% over the course of the past month, outperforming the Computer and Technology sector's loss of 1.93% and the S&P 500's loss of 2.61%.

The upcoming earnings release of T-Mobile will be of great interest to investors. The company's earnings report is expected on October 25, 2023. The company is forecasted to report an EPS of $1.85, showcasing a 362.5% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $19.39 billion, indicating a 0.44% decline compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.20 per share and revenue of $78.47 billion, indicating changes of +249.51% and -1.38%, respectively, compared to the previous year.

Any recent changes to analyst estimates for T-Mobile should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.55% lower. T-Mobile is currently a Zacks Rank #3 (Hold).

With respect to valuation, T-Mobile is currently being traded at a Forward P/E ratio of 19.47. This signifies a premium in comparison to the average Forward P/E of 10.49 for its industry.

The Wireless National industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 208, placing it within the bottom 18% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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