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T-Mobile (TMUS) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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In the latest trading session, T-Mobile (TMUS - Free Report) closed at $161.16, marking a +0.26% move from the previous day. This change lagged the S&P 500's 0.89% gain on the day. Meanwhile, the Dow experienced a rise of 1.03%, and the technology-dominated Nasdaq saw an increase of 1.25%.

Heading into today, shares of the wireless carrier had lost 0.81% over the past month, lagging the Computer and Technology sector's gain of 3.77% and the S&P 500's gain of 3.56% in that time.

Analysts and investors alike will be keeping a close eye on the performance of T-Mobile in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.99, indicating a 25.95% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $19.95 billion, showing a 1.61% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.05 per share and a revenue of $80.41 billion, representing changes of +30.59% and +2.35%, 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 a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.39% lower. At present, T-Mobile boasts a Zacks Rank of #3 (Hold).

Looking at valuation, T-Mobile is presently trading at a Forward P/E ratio of 17.77. This expresses no noticeable deviation compared to the average Forward P/E of 17.77 of its industry.

Meanwhile, TMUS's PEG ratio is currently 0.63. 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 2.54 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 149, positioning it in the bottom 41% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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