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

T-Mobile (TMUS) closed at $125.99 in the latest trading session, marking a -1.11% move from the prior day. This change lagged the S&P 500's 1.04% gain on the day. At the same time, the Dow added 0.58%, and the tech-heavy Nasdaq gained 2.52%.

Prior to today's trading, shares of the wireless carrier had gained 2.35% over the past month. This has outpaced the Computer and Technology sector's loss of 7.14% and the S&P 500's loss of 0.15% in that time.

Investors will be hoping for strength from TMUS as it approaches its next earnings release. In that report, analysts expect TMUS to post earnings of $0.65 per share. This would mark a year-over-year decline of 47.15%. Meanwhile, our latest consensus estimate is calling for revenue of $18.75 billion, up 68.73% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.12 per share and revenue of $78.57 billion, which would represent changes of +31.65% and +14.87%, respectively, from the prior year.

Any recent changes to analyst estimates for TMUS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 9.93% higher. TMUS is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, TMUS currently has a Forward P/E ratio of 40.78. This valuation marks a premium compared to its industry's average Forward P/E of 27.79.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 191, which puts it in the bottom 26% 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.

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


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