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T-Mobile (TMUS) Stock Moves -0.29%: What You Should Know

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T-Mobile (TMUS - Free Report) closed at $149.51 in the latest trading session, marking a -0.29% move from the prior day. This move was narrower than the S&P 500's daily loss of 0.41%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, lost 4.08%.

Heading into today, shares of the wireless carrier had gained 4.85% over the past month, lagging the Computer and Technology sector's gain of 9.46% and the S&P 500's gain of 6.51% in that time.

Investors will be hoping for strength from T-Mobile as it approaches its next earnings release. On that day, T-Mobile is projected to report earnings of $1.45 per share, which would represent year-over-year growth of 154.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.91 billion, down 1.05% from the year-ago period.

TMUS's full-year Zacks Consensus Estimates are calling for earnings of $6.71 per share and revenue of $80.69 billion. These results would represent year-over-year changes of +225.73% and +1.41%, respectively.

It is also important to note the recent changes to analyst estimates for T-Mobile. 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. 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 1.1% higher. T-Mobile is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, T-Mobile currently has a Forward P/E ratio of 22.36. For comparison, its industry has an average Forward P/E of 23.38, which means T-Mobile is trading at a discount to the group.

Meanwhile, TMUS's PEG ratio is currently 0.71. 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. Wireless National stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 24% 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.

To follow TMUS in the coming trading sessions, be sure to utilize Zacks.com.


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