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

T-Mobile (TMUS) closed the most recent trading day at $105.38, moving -1.43% from the previous trading session. This change lagged the S&P 500's 0.97% loss on the day. Meanwhile, the Dow lost 0.96%, and the Nasdaq, a tech-heavy index, added 0.23%.

Coming into today, shares of the wireless carrier had lost 11.72% in the past month. In that same time, the Computer and Technology sector lost 4.93%, while the S&P 500 lost 0.78%.

Wall Street will be looking for positivity from T-Mobile as it approaches its next earnings report date. In that report, analysts expect T-Mobile to post earnings of $0.16 per share. This would mark a year-over-year decline of 84.47%. Our most recent consensus estimate is calling for quarterly revenue of $21.17 billion, up 4.09% from the year-ago period.

Investors might also notice recent changes to analyst estimates for T-Mobile. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.05% lower within the past month. T-Mobile currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, T-Mobile is holding a Forward P/E ratio of 36. This represents a premium compared to its industry's average Forward P/E of 17.58.

Investors should also note that TMUS has a PEG ratio of 7.2 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TMUS's industry had an average PEG ratio of 2.68 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 173, putting it in the bottom 33% 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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TMobile US, Inc. (TMUS): Free Stock Analysis Report
 
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