AT&T (T) Stock Sinks As Market Gains: What You Should Know
AT&T (T) closed the most recent trading day at $36.77, moving -1.05% from the previous trading session. This change lagged the S&P 500's 0.03% gain on the day. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 0.11%.
Heading into today, shares of the telecommunications company had gained 6.23% over the past month, outpacing the Computer and Technology sector's gain of 4.15% and the S&P 500's gain of 4.17% in that time.
Wall Street will be looking for positivity from T as it approaches its next earnings report date. The company is expected to report EPS of $0.94, up 4.44% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $45.35 billion, down 0.86% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.58 per share and revenue of $182.67 billion. These totals would mark changes of +1.7% and +6.98%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for T. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 0.02% 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 10.39. This represents a discount compared to its industry's average Forward P/E of 18.41.
Also, we should mention that T has a PEG ratio of 2.33. 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 2.33 based on yesterday's closing prices.
The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 30% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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