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

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AT&T (T - Free Report) closed the most recent trading day at $25.72, moving -1.11% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.49%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq increased by 1.22%.

Shares of the telecommunications company have appreciated by 3.42% over the course of the past month, outperforming the Computer and Technology sector's loss of 12.07% and the S&P 500's loss of 8.15%.

The upcoming earnings release of AT&T will be of great interest to investors. The company's earnings report is expected on April 23, 2025. On that day, AT&T is projected to report earnings of $0.52 per share, which would represent a year-over-year decline of 5.45%. In the meantime, our current consensus estimate forecasts the revenue to be $30.55 billion, indicating a 1.75% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $2.14 per share and a revenue of $124.19 billion, demonstrating changes of -5.31% and +1.52%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for AT&T. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 5.28% decrease. As of now, AT&T holds a Zacks Rank of #3 (Hold).

Investors should also note AT&T's current valuation metrics, including its Forward P/E ratio of 12.17. This represents a discount compared to its industry's average Forward P/E of 20.66.

It's also important to note that T currently trades at a PEG ratio of 2.98. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Wireless National industry had an average PEG ratio of 3.76 as trading concluded yesterday.

The Wireless National industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 27, finds itself in the top 11% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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