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

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T-Mobile (TMUS - Free Report) closed at $139.33 in the latest trading session, marking a +0.31% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.12%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.14%.

Investors will be hoping for strength from T-Mobile as it approaches its next earnings release. The company is expected to report EPS of $1.51, up 5.59% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.34 billion, down 1.84% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.99 per share and revenue of $79.14 billion, which would represent changes of +239.32% and -0.54%, respectively, from the prior year.

Investors might also notice 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.

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

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. Over the past month, the Zacks Consensus EPS estimate has moved 1.27% higher. T-Mobile is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that T-Mobile has a Forward P/E ratio of 19.86 right now. For comparison, its industry has an average Forward P/E of 19.86, which means T-Mobile is trading at a no noticeable deviation to the group.

It is also worth noting that TMUS currently has a PEG ratio of 0.64. 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. TMUS's industry had an average PEG ratio of 1.25 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 30% 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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