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T-Mobile (TMUS) Dips More Than Broader Market: What You Should Know

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T-Mobile (TMUS - Free Report) closed at $162.67 in the latest trading session, marking a -0.34% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.2%. Elsewhere, the Dow lost 0.6%, while the tech-heavy Nasdaq added 0.11%.

Shares of the wireless carrier witnessed a loss of 0.09% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.99% and the S&P 500's gain of 3.32%.

The investment community will be paying close attention to the earnings performance of T-Mobile in its upcoming release. The company is forecasted to report an EPS of $1.93, showcasing a 22.15% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $19.76 billion, up 0.65% from the year-ago period.

TMUS's full-year Zacks Consensus Estimates are calling for earnings of $8.98 per share and revenue of $80.07 billion. These results would represent year-over-year changes of +29.58% and +1.92%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for T-Mobile. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate has moved 1.18% lower. As of now, T-Mobile holds a Zacks Rank of #3 (Hold).

From a valuation perspective, T-Mobile is currently exchanging hands at a Forward P/E ratio of 18.18. This denotes no noticeable deviation relative to the industry's average Forward P/E of 18.18.

We can additionally observe that TMUS currently boasts a PEG ratio of 0.66. 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 average PEG ratio for the Wireless National industry stood at 2.64 at the close of the market yesterday.

The Wireless National industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 176, this industry ranks in the bottom 31% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply to follow these and more stock-moving metrics during the upcoming trading sessions.

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