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

Zacks Equity Research
EQT (EQT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

AT&T (T) closed the most recent trading day at $30.54, moving -0.47% from the previous trading session. This change lagged the S&P 500's 0.29% loss on the day. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq gained 0.07%.

Prior to today's trading, shares of the telecommunications company had gained 0.16% over the past month. This has lagged the Computer and Technology sector's gain of 4.76% and the S&P 500's gain of 2.14% in that time.

T will be looking to display strength as it nears its next earnings release. In that report, analysts expect T to post earnings of $0.86 per share. This would mark year-over-year growth of 1.18%. Our most recent consensus estimate is calling for quarterly revenue of $45.32 billion, up 19.15% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.58 per share and revenue of $184.51 billion, which would represent changes of +1.7% and +8.05%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for T. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.23% higher. T is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, T is holding a Forward P/E ratio of 8.57. Its industry sports an average Forward P/E of 28.58, so we one might conclude that T is trading at a discount comparatively.

We can also see that T currently has a PEG ratio of 1.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. T's industry had an average PEG ratio of 2.99 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow T in the coming trading sessions, be sure to utilize Zacks.com.


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