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AT&T (T) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

AT&T (T) closed at $37.49 in the latest trading session, marking a -0.24% move from the prior day. This move lagged the S&P 500's daily loss of 0.14%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq lost 0.1%.

Coming into today, shares of the telecommunications company had lost 2.08% in the past month. In that same time, the Computer and Technology sector lost 0.36%, while the S&P 500 lost 0.91%.

Wall Street will be looking for positivity from T as it approaches its next earnings report date. This is expected to be October 23, 2019. On that day, T is projected to report earnings of $0.93 per share, which would represent year-over-year growth of 3.33%. Our most recent consensus estimate is calling for quarterly revenue of $45.11 billion, down 1.37% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.56 per share and revenue of $182.25 billion. These totals would mark changes of +1.14% and +6.73%, respectively, from last year.

Any recent changes to analyst estimates for T should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.17% lower. T is currently a Zacks Rank #3 (Hold).

In terms of valuation, T is currently trading at a Forward P/E ratio of 10.56. This valuation marks a discount compared to its industry's average Forward P/E of 14.11.

Investors should also note that T has a PEG ratio of 2.37 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Wireless National was holding an average PEG ratio of 2.37 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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