AT&T (T) closed the most recent trading day at $30.78, moving +0.92% from the previous trading session. This move lagged the S&P 500's daily gain of 1.9%. At the same time, the Dow added 2.05%, and the tech-heavy Nasdaq gained 1.75%.
T will be looking to display strength as it nears its next earnings release, which is expected to be July 23, 2020. In that report, analysts expect T to post earnings of $0.80 per share. This would mark a year-over-year decline of 10.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $41.33 billion, down 8.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.23 per share and revenue of $170.95 billion. These totals would mark changes of -9.52% and -5.65%, 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. T is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, T is currently trading at a Forward P/E ratio of 9.46. For comparison, its industry has an average Forward P/E of 23.64, which means T is trading at a discount to the group.
It is also worth noting that T currently has a PEG ratio of 1.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Wireless National stocks are, on average, holding a PEG ratio of 4.04 based on yesterday's closing prices.
The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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