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T-Mobile (TMUS) Gains As Market Dips: What You Should Know

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T-Mobile (TMUS - Free Report) closed the most recent trading day at $134.54, moving +0.13% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.88%. Elsewhere, the Dow lost 0.82%, while the tech-heavy Nasdaq added 0.08%.

Prior to today's trading, shares of the wireless carrier had lost 0.14% over the past month. This has was narrower than the Computer and Technology sector's loss of 7.53% and the S&P 500's loss of 8.06% in that time.

T-Mobile will be looking to display strength as it nears its next earnings release. On that day, T-Mobile is projected to report earnings of $0.57 per share, which would represent a year-over-year decline of 26.92%. Our most recent consensus estimate is calling for quarterly revenue of $20.19 billion, up 1.22% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.95 per share and revenue of $81.79 billion. These totals would mark changes of +13.9% and +2.12%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for T-Mobile. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. T-Mobile is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, T-Mobile is currently trading at a Forward P/E ratio of 45.57. Its industry sports an average Forward P/E of 27.75, so we one might conclude that T-Mobile is trading at a premium comparatively.

It is also worth noting that TMUS currently has a PEG ratio of 1.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless National industry currently had an average PEG ratio of 1.98 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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