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T-Mobile (TMUS) Dips More Than Broader Markets: What You Should Know

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T-Mobile (TMUS - Free Report) closed the most recent trading day at $104.49, moving -0.41% from the previous trading session. This change lagged the S&P 500's daily loss of 0.34%. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.73%.

Heading into today, shares of the wireless carrier had gained 2.23% over the past month, lagging the Computer and Technology sector's gain of 7.57% and the S&P 500's gain of 5.71% in that time.

TMUS will be looking to display strength as it nears its next earnings release. On that day, TMUS is projected to report earnings of $0.46 per share, which would represent a year-over-year decline of 64.34%. Meanwhile, our latest consensus estimate is calling for revenue of $17.28 billion, up 57.41% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.71 per share and revenue of $68.11 billion. These totals would mark changes of -57.46% and +51.35%, respectively, from last year.

Any recent changes to analyst estimates for TMUS should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Within the past 30 days, our consensus EPS projection has moved 23.04% higher. TMUS is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, TMUS currently has a Forward P/E ratio of 61.27. Its industry sports an average Forward P/E of 27.69, so we one might conclude that TMUS is trading at a premium comparatively.

Meanwhile, TMUS's PEG ratio is currently 3.12. 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. Wireless National stocks are, on average, holding a PEG ratio of 2.46 based on yesterday's closing prices.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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