Back to top

Image: Bigstock

T-Mobile (TMUS) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

T-Mobile (TMUS - Free Report) closed at $113.20 in the latest trading session, marking a +1.46% move from the prior day. This change lagged the S&P 500's 2.02% gain on the day. Meanwhile, the Dow gained 1.6%, and the Nasdaq, a tech-heavy index, added 2.71%.

Prior to today's trading, shares of the wireless carrier had lost 1.78% over the past month. This has lagged the Computer and Technology sector's loss of 0.91% and the S&P 500's loss of 0.39% in that time.

TMUS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.57, down 50.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $18.25 billion, up 64.95% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.91 per share and revenue of $67.81 billion, which would represent changes of -52.49% and +50.7%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for TMUS. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 4.87% higher within the past month. TMUS is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that TMUS has a Forward P/E ratio of 58.35 right now. This represents a premium compared to its industry's average Forward P/E of 22.79.

Investors should also note that TMUS has a PEG ratio of 4.74 right now. 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 4.21 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 127, putting it in the top 50% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


TMobile US, Inc. (TMUS) - free report >>

Published in