Unusual Social Activity Today Around T-Mobile US (TMUS)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
(
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified T-Mobile US as such a stock due to the following factors:
- TMUS has 20x the normal benchmarked social activity for this time of the day compared to its average of 25.65 mentions/day.
- TMUS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $155.1 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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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 109.9. Currently there are 13 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 5.3 million shares per day over the past 30 days. T-Mobile US has a market cap of $26.6 billion and is part of the technology sector and telecommunications industry. The stock has a beta of 1.15 and a short float of 6% with 3.36 days to cover. Shares are up 21.6% year-to-date as of the close of trading on Tuesday.
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 and robust revenue growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.
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. This trend suggests that the performance of the business is improving. 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 605.0% when compared to the same quarter one year prior, rising from -$20.00 million to $101.00 million.
- Compared to other companies in the Wireless Telecommunication Services industry and the overall market on the basis of return on equity, T-MOBILE US INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- Currently the debt-to-equity ratio of 1.58 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Even though the debt-to-equity ratio is weak, TMUS's quick ratio is somewhat strong at 1.19, demonstrating the ability to handle short-term liquidity needs.
- You can view the full T-Mobile US Ratings Report.
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