T-Mobile US (TMUS): Today's Weak On High Volume Stock
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified T-Mobile US as such a stock due to the following factors:
- TMUS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $180.9 million.
- TMUS has traded 1.0 million shares today.
- TMUS is trading at 2.06 times the normal volume for the stock at this time of day.
- TMUS is trading at a new low 3.01% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on TMUS:
T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the U.S. Virgin Islands. The company offers voice, messaging, and data services in the postpaid, prepaid, and wholesale markets. TMUS has a PE ratio of 63. Currently there are 14 analysts that rate T-Mobile US a buy, 1 analyst rates it a sell, and 2 rate it a hold.
The average volume for T-Mobile US has been 3.9 million shares per day over the past 30 days. T-Mobile US has a market cap of $30.9 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 0.45 and a short float of 4.9% with 2.75 days to cover. Shares are up 40.6% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates T-Mobile US as a
. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
- T-MOBILE US INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, T-MOBILE US INC turned its bottom line around by earning $0.29 versus -$0.10 in the prior year. This year, the market expects an improvement in earnings ($0.86 versus $0.29).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Wireless Telecommunication Services industry. The net income increased by 246.8% when compared to the same quarter one year prior, rising from -$94.00 million to $138.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.0%. Since the same quarter one year prior, revenues slightly increased by 6.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has increased to $1,531.00 million or 44.16% when compared to the same quarter last year. In addition, T-MOBILE US INC has also vastly surpassed the industry average cash flow growth rate of -52.01%.
- The gross profit margin for T-MOBILE US INC is rather high; currently it is at 57.15%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, TMUS's net profit margin of 1.75% significantly trails the industry average.
- You can view the full T-Mobile US Ratings Report.
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