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Here's Why T-Mobile (TMUS) is a Strong Growth Stock
T-MobileT-Mobile(US:TMUS) zacks.comยท2024-05-16 14:45

Core Viewpoint - Zacks Premium provides tools and resources to help investors make informed stock market decisions, including daily updates, research reports, and style scores to identify stocks with high potential for market outperformance [1]. Summary by Category Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [1]. Value Score - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow to find attractive investment opportunities [2]. Growth Score - The Growth Score evaluates a company's future prospects by analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth potential [2]. Momentum Score - The Momentum Score helps investors capitalize on price trends by analyzing short-term price changes and earnings estimate revisions to identify favorable buying opportunities [2]. VGM Score - The VGM Score combines Value, Growth, and Momentum Scores, providing a comprehensive indicator for investors who utilize multiple investment strategies [3]. Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [4]. Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [5]. Company Spotlight: T-Mobile (TMUS) - T-Mobile US, Inc. is a national wireless service provider with a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating potential for growth [6]. - T-Mobile's Growth Style Score is B, with a projected year-over-year earnings growth of 30% for the current fiscal year, supported by recent upward revisions in earnings estimates [6]. - The Zacks Consensus Estimate for T-Mobile's earnings has increased by $0.03 to $9.01 per share, with an average earnings surprise of 2.5% [6].