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AT&T (T) Stock Drops Despite Market Gains: Important Facts to Note

By Zacks Equity Research | October 13, 2025, 5:45 PM

AT&T (T) ended the recent trading session at $25.60, demonstrating a -1.06% change from the preceding day's closing price. This change lagged the S&P 500's 1.56% gain on the day. Elsewhere, the Dow gained 1.29%, while the tech-heavy Nasdaq added 2.21%.

Heading into today, shares of the telecommunications company had lost 12.51% over the past month, lagging the Computer and Technology sector's gain of 1.06% and the S&P 500's gain of 0.41%.

Market participants will be closely following the financial results of AT&T in its upcoming release. The company plans to announce its earnings on October 22, 2025. The company is forecasted to report an EPS of $0.55, showcasing a 8.33% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $30.96 billion, up 2.47% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $2.05 per share and a revenue of $125 billion, demonstrating changes of -9.29% and +2.18%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for AT&T. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.56% higher. AT&T is currently a Zacks Rank #3 (Hold).

Investors should also note AT&T's current valuation metrics, including its Forward P/E ratio of 12.63. This expresses a discount compared to the average Forward P/E of 20.14 of its industry.

One should further note that T currently holds a PEG ratio of 2.1. 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 2.1 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 201, this industry ranks in the bottom 19% of all industries, numbering over 250.

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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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AT&T Inc. (T): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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