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

T-Mobile (TMUS) closed at $133.32 in the latest trading session, marking a +1.21% move from the prior day. This change outpaced the S&P 500's 1.09% gain on the day.

Prior to today's trading, shares of the wireless carrier had gained 6.68% over the past month. This has lagged the Computer and Technology sector's gain of 6.99% and outpaced the S&P 500's gain of 5.05% in that time.

TMUS will be looking to display strength as it nears its next earnings release, which is expected to be May 4, 2021. The company is expected to report EPS of $0.58, down 52.85% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $18.86 billion, up 69.7% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.60 per share and revenue of $78.69 billion. These totals would mark changes of +9.7% and +15.05%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for TMUS. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.79% lower. TMUS currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, TMUS is holding a Forward P/E ratio of 50.76. This represents a premium compared to its industry's average Forward P/E of 33.16.

Meanwhile, TMUS's PEG ratio is currently 1.06. 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. Wireless National stocks are, on average, holding a PEG ratio of 3.63 based on yesterday's closing prices.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 22% 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.

To follow TMUS in the coming trading sessions, be sure to utilize

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