T-Mobile (TMUS) closed at $112.39 in the latest trading session, marking a +1.65% move from the prior day. This move outpaced the S&P 500's daily gain of 1.05%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 1.72%.
Heading into today, shares of the wireless carrier had lost 4.07% over the past month, outpacing the Computer and Technology sector's loss of 4.28% and lagging the S&P 500's loss of 3.29% 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 $0.57 per share. This would mark a year-over-year decline of 50.86%. Meanwhile, our latest consensus estimate is calling for revenue of $18.25 billion, up 64.95% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.91 per share and revenue of $67.81 billion, which would represent changes of -52.49% and +50.7%, respectively, from the prior year.
Any recent changes to analyst estimates for TMUS should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 1.47% higher. TMUS is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, TMUS is holding a Forward P/E ratio of 57.83. Its industry sports an average Forward P/E of 25.87, so we one might conclude that TMUS is trading at a premium comparatively.
We can also see that TMUS currently has a PEG ratio of 4.69. 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 4.18 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 116, putting it in the top 46% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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