T-Mobile (TMUS) Gains But Lags Market: What You Should Know – December 29, 2022

T-Mobile (TMUS Free Report) closed at $139.40 in the last trading session, marking a +0.3% move from the previous day. This move delayed the S&P 500’s daily gain of 1.75%. At the same time, the Dow added 1.05% and the high-tech Nasdaq gained 7.84%.

As of today, the wireless carrier’s stock had lost 8.24% in the past month. In that same time, the IT & Technology sector lost 7.05%, while the S&P 500 lost 4.4%.

Investors will expect strength from T-Mobile as it approaches its next earnings release. On that day, T-Mobile is expected to report earnings of $1.11 per share, which would represent a year-over-year growth of 0.91%. Meanwhile, the Zacks Consensus Estimate for revenue projects net sales of $20.99 billion, up 0.99% from the year-ago period.

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The Zacks Consensus Estimates for the full year for TMUS are calling for earnings of $2.03 per share and revenue of $80.42 million. These results would represent year-on-year variations of -21.62% and +0.41%, respectively.

Investors should also note recent changes in analyst estimates for T-Mobile. These reviews help show the ever-changing nature of short-term trading trends. As a result, we can interpret positive revisions to estimates as a good sign for the company’s business prospects.

Research indicates that these revisions to estimates are directly related to short-term stock price momentum. To benefit from this, we developed the Zacks Rank, a proprietary model that takes these estimate changes into account and provides an actionable ranking system.

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The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive track record of externally audited outperformance, with #1 stocks generating an average annual return of +25% since 1988. Inside of the last 30 days, our consensus EPS projection is down 0.57%. T-Mobile is currently a Zacks Rank #3 (Hold).

Looking at the valuation, T-Mobile currently has a Forward P/E ratio of 68.54. This represents a premium compared to its industry average forward P/E of 24.53.

It’s also worth noting that TMUS currently has a PEG ratio of 2.54. This popular metric is similar to the well-known P/E ratio, with the difference that the PEG ratio also takes into account the company’s expected earnings growth rate. Wireless National stock has an average PEG ratio of 2.08 based on yesterday’s closing prices.

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The Wireless National industry is part of the Computers & Technology sector. This group has a Zacks Industry Rank of 205, placing it in the bottom 19% of over 250 industries.

The Zacks Industry Rank measures 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% of industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to track all of these stock movement metrics and more in the upcoming trading sessions.


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