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AT&T (T) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, AT&T (T) closed at $38.38, marking a -0.93% move from the previous day. This change lagged the S&P 500's 0.29% gain on the day. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.3%.

Heading into today, shares of the telecommunications company had gained 13.64% over the past month, outpacing the Computer and Technology sector's gain of 3.47% and the S&P 500's gain of 2.99% in that time.

Wall Street will be looking for positivity from T as it approaches its next earnings report date. In that report, analysts expect T to post earnings of $0.94 per share. This would mark year-over-year growth of 4.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $45.42 billion, down 0.69% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.58 per share and revenue of $182.68 billion, which would represent changes of +1.7% and +6.98%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for T. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% lower. T currently has a Zacks Rank of #3 (Hold).

Digging into valuation, T currently has a Forward P/E ratio of 10.83. Its industry sports an average Forward P/E of 16.91, so we one might conclude that T is trading at a discount comparatively.

Meanwhile, T's PEG ratio is currently 2.45. 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 2.45 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 81, putting it in the top 32% 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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