In the latest trading session, AT&T (T) closed at $27.38, marking a -0.44% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.4% for the day. On the other hand, the Dow registered a gain of 0.28%, and the technology-centric Nasdaq increased by 0.39%.
Prior to today's trading, shares of the telecommunications company had lost 0.72% over the past month. This has lagged the Computer and Technology sector's gain of 11.04% and the S&P 500's gain of 6.69% in that time.
Investors will be eagerly watching for the performance of AT&T in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.53, showcasing a 7.02% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $30.53 billion, up 2.48% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.07 per share and a revenue of $124.26 billion, signifying shifts of -8.41% and +1.57%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for AT&T. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, there's been a 0.27% fall in the Zacks Consensus EPS estimate. Right now, AT&T possesses a Zacks Rank of #3 (Hold).
Investors should also note AT&T's current valuation metrics, including its Forward P/E ratio of 13.3. For comparison, its industry has an average Forward P/E of 21.31, which means AT&T is trading at a discount to the group.
Investors should also note that T has a PEG ratio of 3.83 right now. 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 3.2 as of yesterday's close.
The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 143, putting it in the bottom 43% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AT&T Inc. (T): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
