AT&T (T) Dips More Than Broader Markets: What You Should Know
In the latest trading session, AT&T (T) closed at $29.77, marking a -1.19% move from the previous day. This change lagged the S&P 500's daily loss of 0.94%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 2.13%.
Heading into today, shares of the telecommunications company had lost 0.13% over the past month, lagging the Computer and Technology sector's gain of 5.46% and the S&P 500's gain of 0.02% in that time.
Wall Street will be looking for positivity from T as it approaches its next earnings report date. This is expected to be July 23, 2020. On that day, T is projected to report earnings of $0.78 per share, which would represent a year-over-year decline of 12.36%. Meanwhile, our latest consensus estimate is calling for revenue of $41.41 billion, down 7.89% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.19 per share and revenue of $170.87 billion. These totals would mark changes of -10.64% and -5.7%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for T. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.49% lower. T currently has a Zacks Rank of #3 (Hold).
In terms of valuation, T is currently trading at a Forward P/E ratio of 9.45. This represents a discount compared to its industry's average Forward P/E of 27.31.
It is also worth noting that T currently has a PEG ratio of 1.71. 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. T's industry had an average PEG ratio of 2.49 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 34, putting it in the top 14% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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