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T-Mobile Stock Fell 4% in August: What’s Next?

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T-Mobile stock fell 4% in August

T-Mobile (TMUS) stock fell 4.0% in August and closed at $78.05. The stock rose 2.1% in the last five trading days of August. Notably, the stock is trading 8.4% lower than its 52-week high of $85.22. The company is trading 30.2% higher than its 52-week low of $59.96.

Although T-Mobile stock fell in August, it has risen 22.7% since the beginning of 2019 and 18.2% in the trailing 12-month period. AT&T (T) and Sprint (S) have risen 10.3% and 10.8%, respectively, in the trailing 12-month period. On August 30, Sprint stock fell 0.44% and closed at $6.79, while AT&T stock rose 0.31% to $35.26.

As of August 30, T-Mobile’s market capitalization was $66.7 billion. T-Mobile is the third-largest US mobile carrier in terms of market capitalization. AT&T’s market capitalization was $257.6 billion, while Sprint’s market capitalization was $27.8 billion.

RSI and MACD

T-Mobile’s 14-day RSI (relative strength index) is 51, which shows that investors are neutral toward the stock. T-Mobile’s 14-day MACD (moving average convergence divergence) is 0.12. A positive MACD number denotes an upward trading trend.

Analysts’ recommendations on T-Mobile stock

Among the 21 analysts covering T-Mobile, 17 recommended a “buy,” while four recommended a “hold.” There weren’t any “sell” recommendations on August 30.

Analysts have an average 12-month target price of $88.53 for T-Mobile stock with a median target price of $90. T-Mobile is trading at a discount of 15.3% to analysts’ median estimates.

Technical levels

Based on the closing price on August 30, T-Mobile stock was trading 0.8% above its 20-day moving average of $77.43, 0.6% above its 50-day moving average of $77.55, and 2.4% above its 100-day moving average of $76.19. On the downside, the company’s immediate key support lies near $77.77, while $78.36 could act as an immediate key resistance level on a daily basis.

In the trading session on August 30, T-Mobile stock closed near its upper Bollinger Band level of $78.61. The value implies that the stock is overbought. Investors could take the value as a “sell” signal.

Revenue and earnings expansion

T-Mobile reported an adjusted EPS of $3.36 on revenues of $43.31 billion in 2018. Analysts expect T-Mobile’s sales to rise 4.6% YoY (year-over-year) to $45.32 billion in 2019 and 4.8% YoY to $47.51 billion in 2020. The company’s adjusted EPS will likely rise 18.8% to $3.99 in 2019 and 20.6% to $4.81 in 2020. The adjusted EPS will likely rise at a compound annual growth rate of 18.90% over the next five years.

The long-awaited merger between T-Mobile and Sprint is nearing completion. To learn more about the merger deal, read T-Mobile Asks Court to Clear the Sprint Merger.

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