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AT&T (T) Dips More Than Broader Markets: What You Should Know

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AT&T (T - Free Report) closed at $23.69 in the latest trading session, marking a -0.92% move from the prior day. This change lagged the S&P 500's 0.24% loss on the day. Elsewhere, the Dow lost 0.49%, while the tech-heavy Nasdaq lost 0.04%.

Heading into today, shares of the telecommunications company had lost 5.16% over the past month, lagging the Computer and Technology sector's gain of 0.63% and the S&P 500's gain of 0.73% in that time.

Investors will be hoping for strength from AT&T as it approaches its next earnings release, which is expected to be April 21, 2022. In that report, analysts expect AT&T to post earnings of $0.80 per share. This would mark a year-over-year decline of 6.98%. Meanwhile, our latest consensus estimate is calling for revenue of $38.56 billion, down 12.24% from the prior-year quarter.

T's full-year Zacks Consensus Estimates are calling for earnings of $3.13 per share and revenue of $153.01 billion. These results would represent year-over-year changes of -7.94% and -9.39%, respectively.

It is also important to note the recent changes to analyst estimates for AT&T. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.72% lower. AT&T is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note AT&T's current valuation metrics, including its Forward P/E ratio of 7.63. This valuation marks a discount compared to its industry's average Forward P/E of 23.62.

Investors should also note that T has a PEG ratio of 1.98 right now. 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 was holding an average PEG ratio of 2.36 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 213, putting it in the bottom 17% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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