Advertisement
U.S. markets open in 3 hours 24 minutes
  • S&P Futures

    5,203.50
    -11.25 (-0.22%)
     
  • Dow Futures

    39,167.00
    -56.00 (-0.14%)
     
  • Nasdaq Futures

    18,176.75
    -54.75 (-0.30%)
     
  • Russell 2000 Futures

    2,043.70
    -6.10 (-0.30%)
     
  • Crude Oil

    82.57
    -0.15 (-0.18%)
     
  • Gold

    2,156.20
    -8.10 (-0.37%)
     
  • Silver

    25.09
    -0.17 (-0.67%)
     
  • EUR/USD

    1.0844
    -0.0033 (-0.30%)
     
  • 10-Yr Bond

    4.3400
    0.0000 (0.00%)
     
  • Vix

    14.66
    +0.33 (+2.30%)
     
  • GBP/USD

    1.2673
    -0.0056 (-0.44%)
     
  • USD/JPY

    150.6870
    +1.5890 (+1.07%)
     
  • Bitcoin USD

    63,954.84
    -3,944.62 (-5.81%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,720.35
    -2.20 (-0.03%)
     
  • Nikkei 225

    40,003.60
    +263.20 (+0.66%)
     

Price Over Earnings Overview: AT&T

 

Looking into the current session, AT&T Inc. (NYSE: T) shares are trading at $29.48, after a 0.86% spike. Moreover, over the past month, the stock increased by 7.45%, but in the past year, decreased by 22.49%. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session.

The stock is currently higher from its 52 week low by 13.06%. Assuming that all other factors are held constant, this could present itself as an opportunity for investors trying to diversify their portfolio with Diversified Telecommunication Services stocks, and capitalize on the lower share price observed over the year.

The P/E ratio measures the current share price to the company's earnings per share. It is used by long-term investors to analyze the company’s current performance against its past earnings, historical data and aggregate market data for the industry or the indices, such as S&P 500. A higher P/E indicates that investors expect the company to perform better in the future, and the stock is probably overvalued, but not necessarily. It also shows that investors are willing to pay a higher share price currently, because they expect the company to perform better in the upcoming quarters. This leads investors to also remain optimistic about rising dividends in the future.

View more earnings on T

Most often, an industry will prevail in a particular phase of a business cycle, than other industries.

Compared to the aggregate P/E ratio of the 19.46 in the Diversified Telecommunication Services industry, AT&T Inc. has a lower P/E ratio of 19.36. Shareholders might be inclined to think that the stock might perform worse than its industry peers. It’s also possible that the stock is undervalued.

There are many limitations to price to earnings ratio. It is sometimes difficult to determine the nature of the earnings makeup of a company. Shareholders might not get what they're looking for, from trailing earnings.

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Advertisement