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

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In the latest trading session, AT&T (T - Free Report) closed at $30.56, marking a +0.82% move from the previous day. This move outpaced the S&P 500's daily loss of 0.09%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, lost 0.6%.

Prior to today's trading, shares of the telecommunications company had gained 5.87% over the past month. This has outpaced the Computer and Technology sector's loss of 0.46% and the S&P 500's gain of 4.45% in that time.

Investors will be hoping for strength from T as it approaches its next earnings release, which is expected to be April 22, 2021. On that day, T is projected to report earnings of $0.77 per share, which would represent a year-over-year decline of 8.33%. Meanwhile, our latest consensus estimate is calling for revenue of $42.69 billion, down 0.21% from the prior-year quarter.

T's full-year Zacks Consensus Estimates are calling for earnings of $3.15 per share and revenue of $172.43 billion. These results would represent year-over-year changes of -0.94% and +0.39%, respectively.

It is also important to note the recent changes to analyst estimates for T. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.5% higher. T is currently a Zacks Rank #3 (Hold).

Investors should also note T's current valuation metrics, including its Forward P/E ratio of 9.61. This represents a discount compared to its industry's average Forward P/E of 27.41.

Investors should also note that T has a PEG ratio of 3.91 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Wireless National stocks are, on average, holding a PEG ratio of 3.49 based on yesterday's closing prices.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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