Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, T-Mobile (TMUS - Free Report) closed at $75.47, marking a +0.77% move from the previous day. This move outpaced the S&P 500's daily gain of 0.01%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq gained 0.2%.

Coming into today, shares of the wireless carrier had lost 2.54% in the past month. In that same time, the Computer and Technology sector gained 2.57%, while the S&P 500 gained 2.67%.

Investors will be hoping for strength from TMUS as it approaches its next earnings release. On that day, TMUS is projected to report earnings of $0.87 per share, which would represent year-over-year growth of 16%. Meanwhile, our latest consensus estimate is calling for revenue of $11.83 billion, up 3.39% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.06 per share and revenue of $44.96 billion. These totals would mark changes of +20.83% and +3.8%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for TMUS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 0.75% higher. TMUS currently has a Zacks Rank of #3 (Hold).

Investors should also note TMUS's current valuation metrics, including its Forward P/E ratio of 18.43. For comparison, its industry has an average Forward P/E of 13.02, which means TMUS is trading at a premium to the group.

Also, we should mention that TMUS has a PEG ratio of 1.49. 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 industry currently had an average PEG ratio of 3.18 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% 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.

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

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

TMobile US, Inc. (TMUS) - free report >>

Published in