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Here's Why T-Mobile (TMUS) is a Strong Value Stock

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

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T-Mobile (TMUS)

Founded in 1994 and headquartered in Bellevue, WA, T-Mobile US, Inc. is a national wireless service provider. The company offers its services under the T-Mobile, Metro by T-Mobile and Sprint brands. T-Mobile, through its subsidiaries, provides wireless services for branded postpaid and prepaid, and wholesale customers.

TMUS is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 18X for the current fiscal year compared to the Wireless National industry's P/E of 18X. Additionally, TMUS has a PEG Ratio of 0.6 and a Price/Cash Flow ratio of 8.9X. Value investors should also note TMUS' Price/Sales ratio of 2.4X.

Many value investors pay close attention to a company's earnings as well. For TMUS, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $9.01 per share for 2024. Per share TMUS boasts an average earnings surprise of 2.5%.

Investors should take the time to consider TMUS for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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T-Mobile US, Inc. (TMUS) : Free Stock Analysis Report

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Zacks Investment Research