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T-Mobile (TMUS) Stock Sinks As Market Gains: What You Should Know
T-Mobile (TMUS - Free Report) closed at $144.67 in the latest trading session, marking a -0.65% move from the prior day. This change lagged the S&P 500's daily gain of 1.3%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 7.48%.
Heading into today, shares of the wireless carrier had lost 2.5% over the past month, lagging the Computer and Technology sector's gain of 2.79% and outpacing the S&P 500's loss of 2.95% in that time.
Wall Street will be looking for positivity from T-Mobile as it approaches its next earnings report date. In that report, analysts expect T-Mobile to post earnings of $1.46 per share. This would mark year-over-year growth of 156.14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.15 billion, up 0.16% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.69 per share and revenue of $81.23 billion, which would represent changes of +224.76% and +2.09%, respectively, from the prior 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. 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. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.88% higher. T-Mobile is currently a Zacks Rank #3 (Hold).
Digging into valuation, T-Mobile currently has a Forward P/E ratio of 21.76. This valuation marks a discount compared to its industry's average Forward P/E of 23.38.
Meanwhile, TMUS's PEG ratio is currently 0.69. 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. TMUS's industry had an average PEG ratio of 1.87 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 198, putting it in the bottom 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.