T-Mobile (TMUS) Plunges More Than Broader Markets: What You Need to Know
J-Mobile (TMUS) closed the last day of trading at $105.38, which is -1.43% from the previous trading session. This change lagged the S&P 500’s 0.97% loss on the day. Meanwhile, the Dow Jones lost 0.96% and the Nasdaq, a technology-heavy index, added 0.23%.
As of today, shares of the mobile operator have lost 11.72% over the past month. Over the same period, the IT & 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 nears its next earnings report date. In this 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 calls for quarterly revenue of $21.17 billion, up 4.09% from the prior year period.
Investors might also notice recent changes in analyst estimates for T-Mobile. These revisions generally reflect the latest short-term trading trends, which may change frequently. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated to short-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.
The Zacks ranking system ranges from #1 (strong buy) to #5 (strong sell). It has a remarkable track record of third-party audited success, with No. 1 stocks offering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has fallen 4.05% over the past month. T-Mobile currently has a Zacks rank of #3 (Hold).
As for its valuation, T-Mobile holds a Forward P/E ratio of 36. This is a premium to its industry average Forward P/E of 17.58.
Investors should also note that TMUS currently has a PEG ratio of 7.2. The PEG ratio is similar to the widely used P/E ratio, but this measure also takes into account the company’s expected earnings growth rate. The TMUS industry had an average PEG ratio of 2.68 at yesterday’s close.
The national wireless industry is part of the computer and technology sector. This group has a Zacks Industry Rank of 173, which places it in the bottom 33% of all 250+ industries.
The Zacks Industry Ranking assesses the strength of our individual industry groups by measuring the average Zacks Ranking of 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.
You can find more information on all of these metrics, and more, at Zacks.com.
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TMobile US, Inc. (TMUS): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
