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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 $32.02, marking a +1.65% move from the previous day. This change outpaced the S&P 500's 0.67% loss on the day.

The company is expected to report EPS of $0.77, down 7.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $42.39 billion, up 3.52% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.15 per share and revenue of $172.61 billion, which would represent changes of -0.94% and +0.5%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for T. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 0.14% higher. T is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, T currently has a Forward P/E ratio of 9.99. Its industry sports an average Forward P/E of 44.99, so we one might conclude that T is trading at a discount comparatively.

Investors should also note that T has a PEG ratio of 3.88 right now. 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 was holding an average PEG ratio of 3.88 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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