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T-Mobile (TMUS) Falls More Steeply Than Broader Market: What Investors Need to Know
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T-Mobile (TMUS - Free Report) closed at $162.86 in the latest trading session, marking a -0.75% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.29%. Meanwhile, the Dow experienced a drop of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.3%.
Heading into today, shares of the wireless carrier had gained 1.65% over the past month, lagging the Computer and Technology sector's gain of 3.61% and the S&P 500's gain of 4.42% in that time.
The upcoming earnings release of T-Mobile will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.01, reflecting a 27.22% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $19.95 billion, reflecting a 1.61% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.08 per share and revenue of $80.41 billion, which would represent changes of +31.02% and +2.35%, respectively, from the prior year.
Any recent changes to analyst estimates for T-Mobile should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.26% lower. T-Mobile currently has a Zacks Rank of #3 (Hold).
In terms of valuation, T-Mobile is currently trading at a Forward P/E ratio of 18.07. This denotes a discount relative to the industry's average Forward P/E of 21.36.
It's also important to note that TMUS currently trades at a PEG ratio of 0.62. 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. The Wireless National was holding an average PEG ratio of 2.55 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 156, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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T-Mobile (TMUS) Falls More Steeply Than Broader Market: What Investors Need to Know
T-Mobile (TMUS - Free Report) closed at $162.86 in the latest trading session, marking a -0.75% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.29%. Meanwhile, the Dow experienced a drop of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.3%.
Heading into today, shares of the wireless carrier had gained 1.65% over the past month, lagging the Computer and Technology sector's gain of 3.61% and the S&P 500's gain of 4.42% in that time.
The upcoming earnings release of T-Mobile will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.01, reflecting a 27.22% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $19.95 billion, reflecting a 1.61% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.08 per share and revenue of $80.41 billion, which would represent changes of +31.02% and +2.35%, respectively, from the prior year.
Any recent changes to analyst estimates for T-Mobile should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.26% lower. T-Mobile currently has a Zacks Rank of #3 (Hold).
In terms of valuation, T-Mobile is currently trading at a Forward P/E ratio of 18.07. This denotes a discount relative to the industry's average Forward P/E of 21.36.
It's also important to note that TMUS currently trades at a PEG ratio of 0.62. 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. The Wireless National was holding an average PEG ratio of 2.55 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 156, which puts it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.