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

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T-Mobile (TMUS - Free Report) closed at $129.88 in the latest trading session, marking a -0.69% move from the prior day. This change lagged the S&P 500's 0.69% gain on the day. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, lost 8.94%.

Coming into today, shares of the wireless carrier had lost 9.57% in the past month. In that same time, the Computer and Technology sector gained 10.86%, while the S&P 500 gained 5.41%.

Investors will be hoping for strength from T-Mobile as it approaches its next earnings release. In that report, analysts expect T-Mobile to post earnings of $1.71 per share. This would mark year-over-year growth of 19.58%. Our most recent consensus estimate is calling for quarterly revenue of $19.33 billion, down 1.88% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.98 per share and revenue of $79.12 billion, which would represent changes of +238.83% and -0.56%, respectively, from the prior year.

It is also important to note the 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.

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. The Zacks Consensus EPS estimate has moved 1.14% higher within the past month. T-Mobile is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that T-Mobile has a Forward P/E ratio of 18.72 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 18.72.

It is also worth noting that TMUS currently has a PEG ratio of 0.6. 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 was holding an average PEG ratio of 1.28 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% 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.

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


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