T-Mobile US, Inc. TMUS shares rallied 3.5% in the last trading session to close at $254.90. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4% loss over the past four weeks.
T-Mobile is benefiting from industry-leading postpaid customer growth with a record-low churn rate. The company recently completed the acquisitions of Blis, an innovative provider of privacy-centric advertising solutions, and Vistar Media, a leading provider of technology solutions for digital out-of-home advertisements. Amid intensifying competition in the U.S. wireless market, T-Mobile is focusing on diversifying its business operations and unlocking new streams for revenue generation. Efforts to venture into various advertisement domains aligned with TMUS’ strategy of diversification. The company is also actively looking to explore new use cases for its 5G network portfolio. TMUS is working with Disney Studios to support its movie production process with its 5G. In addition to strategic buyouts, a strong emphasis on improving cash flow by improving capital management is a major tailwind. These factors have instilled investor optimism, which probably propelled the share price appreciation.
This wireless carrier is expected to post quarterly earnings of $2.47 per share in its upcoming report, which represents a year-over-year change of +23.5%. Revenues are expected to be $20.61 billion, up 5.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For T-Mobile, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TMUS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
T-Mobile is part of the Zacks Wireless National industry. Cogent Communications CCOI, another stock in the same industry, closed the last trading session 6.3% higher at $53.83. CCOI has returned -27.6% in the past month.
Cogent's consensus EPS estimate for the upcoming report has changed +6% over the past month to -$0.88. Compared to the company's year-ago EPS, this represents a change of +31.8%. Cogent currently boasts a Zacks Rank of #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
T-Mobile US, Inc. (TMUS): Free Stock Analysis Report Cogent Communications Holdings, Inc. (CCOI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
