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

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In the latest market close, AT&T (T - Free Report) reached $21.57, with a +1.46% movement compared to the previous day. This change outpaced the S&P 500's 0.76% loss on the day. Meanwhile, the Dow lost 0.75%, and the Nasdaq, a tech-heavy index, lost 1.01%.

Shares of the telecommunications company witnessed a loss of 4.54% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 5.51% and the S&P 500's gain of 4.31%.

The upcoming earnings release of AT&T will be of great interest to investors. The company's earnings report is expected on October 23, 2024. The company is predicted to post an EPS of $0.59, indicating a 7.81% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $30.56 billion, indicating a 0.68% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.22 per share and a revenue of $122.84 billion, signifying shifts of -7.88% and +0.34%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AT&T. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.94% higher within the past month. At present, AT&T boasts a Zacks Rank of #3 (Hold).

With respect to valuation, AT&T is currently being traded at a Forward P/E ratio of 9.58. Its industry sports an average Forward P/E of 21.11, so one might conclude that AT&T is trading at a discount comparatively.

Investors should also note that T has a PEG ratio of 3.63 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Wireless National industry had an average PEG ratio of 3.78.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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