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T-Mobile (TMUS) Outperforms Broader Market: What You Need to Know

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The most recent trading session ended with T-Mobile (TMUS - Free Report) standing at $158.95, reflecting a +0.64% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.04% for the day. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw a decrease of 0.03%.

The wireless carrier's shares have seen an increase of 5.61% over the last month, surpassing the Computer and Technology sector's gain of 4.9% and the S&P 500's gain of 5.28%.

Investors will be eagerly watching for the performance of T-Mobile in its upcoming earnings disclosure. On that day, T-Mobile is projected to report earnings of $1.91 per share, which would represent year-over-year growth of 61.86%. At the same time, our most recent consensus estimate is projecting a revenue of $19.81 billion, reflecting a 2.29% fall from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $7.12 per share and revenue of $77.89 billion, which would represent changes of +245.63% and -2.11%, respectively, from the prior year.

Investors should also pay attention to any latest changes in 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 shifted 0.16% downward. T-Mobile is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that T-Mobile has a Forward P/E ratio of 22.17 right now. This indicates a premium in contrast to its industry's Forward P/E of 8.27.

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 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.

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


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