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

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T-Mobile (TMUS - Free Report) closed at $133.19 in the latest trading session, marking a +1.26% move from the prior day. This move lagged the S&P 500's daily gain of 1.49%. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 2.56%.

Heading into today, shares of the wireless carrier had gained 0.31% over the past month, lagging the Computer and Technology sector's gain of 0.53% and the S&P 500's gain of 1.44% 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 $0.47, down 45.98% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.88 billion, up 67.35% from the year-ago period.

Investors might also notice recent changes to analyst estimates for TMUS. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. The Zacks Consensus EPS estimate has moved 1.07% lower within the past month. TMUS is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, TMUS is holding a Forward P/E ratio of 42.43. This valuation marks a premium compared to its industry's average Forward P/E of 23.99.

We can also see that TMUS currently has a PEG ratio of 2.28. 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 2.87 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 92, which puts it in the top 37% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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