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AT&T (T) ended the recent trading session at $26.90, demonstrating a +1.24% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 1.59% for the day. Elsewhere, the Dow saw a downswing of 0.45%, while the tech-heavy Nasdaq depreciated by 2.78%.
Prior to today's trading, shares of the telecommunications company had gained 9.66% over the past month. This has outpaced the Computer and Technology sector's loss of 4.81% and the S&P 500's loss of 2.23% in that time.
The upcoming earnings release of AT&T will be of great interest to investors. The company's upcoming EPS is projected at $0.52, signifying a 5.45% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $30.55 billion, indicating a 1.75% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.14 per share and revenue of $124.19 billion. These totals would mark changes of -5.31% and +1.52%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for AT&T. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has shifted 5.77% upward. AT&T currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, AT&T is currently exchanging hands at a Forward P/E ratio of 12.44. This indicates a discount in contrast to its industry's Forward P/E of 17.93.
Investors should also note that T has a PEG ratio of 3.05 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. The Wireless National industry currently had an average PEG ratio of 3.05 as of yesterday's close.