AT&T (T) closed the latest trading day at $21.56, indicating a -0.6% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.86%, while the tech-heavy Nasdaq lost 0.38%.
The telecommunications company's shares have seen a decrease of 8.21% over the last month, not keeping up with the Computer and Technology sector's loss of 1.29% and the S&P 500's loss of 2.2%.
Market participants will be closely following the financial results of AT&T in its upcoming release. The company plans to announce its earnings on January 27, 2025. In that report, analysts expect AT&T to post earnings of $0.48 per share. This would mark a year-over-year decline of 11.11%. Meanwhile, the latest consensus estimate predicts the revenue to be $32.29 billion, indicating a 0.83% increase compared to the same quarter of the previous year.
Investors should also take note of any recent adjustments to analyst estimates for AT&T. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.32% lower within the past month. As of now, AT&T holds a Zacks Rank of #5 (Strong Sell).
Digging into valuation, AT&T currently has a Forward P/E ratio of 10.13. This represents a discount compared to its industry's average Forward P/E of 17.44.
Meanwhile, T's PEG ratio is currently 3.38. 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. The Wireless National industry had an average PEG ratio of 3.26 as trading concluded yesterday.
The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 26% 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.
To follow T in the coming trading sessions, be sure to utilize Zacks.com.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>AT&T Inc. (T) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
