AT&T (T) closed the most recent trading day at $31.91, moving -0.06% from the previous trading session. This change was narrower than the S&P 500's 0.69% loss on the day. At the same time, the Dow lost 0.87%, and the tech-heavy Nasdaq lost 0.79%.
Coming into today, shares of the telecommunications company had gained 3.13% in the past month. In that same time, the Computer and Technology sector lost 7.49%, while the S&P 500 lost 4.53%.
Investors will be hoping for strength from T as it approaches its next earnings release. In that report, analysts expect T to post earnings of $0.90 per share. This would mark a year-over-year decline of 1.1%. Our most recent consensus estimate is calling for quarterly revenue of $45.01 billion, up 15.46% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.59 per share and revenue of $183.37 billion. These totals would mark changes of +1.99% and +7.39%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for T. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% lower. T is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note T's current valuation metrics, including its Forward P/E ratio of 8.9. For comparison, its industry has an average Forward P/E of 23.92, which means T is trading at a discount to the group.
Also, we should mention that T has a PEG ratio of 1.52. 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 1.49 at yesterday's closing price.
The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 42% 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.
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