AT&T (T) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest trading session, AT&T (T) closed at $22.60, marking a -0.31% move from the previous day. This change lagged the S&P 500's 0.55% gain on the day. Meanwhile, the Dow experienced a drop of 0.06%, and the technology-dominated Nasdaq saw an increase of 1.24%.

The investment community will be closely monitoring the performance of AT&T in its forthcoming earnings report. The company is scheduled to release its earnings on January 27, 2025. The company is forecasted to report an EPS of $0.48, showcasing a 11.11% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $32.29 billion, indicating a 0.84% increase compared to the same quarter of the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for AT&T. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 1.42% higher. AT&T presently features a Zacks Rank of #4 (Sell).

Investors should also note AT&T's current valuation metrics, including its Forward P/E ratio of 10.59. This valuation marks a discount compared to its industry's average Forward P/E of 18.34.

It is also worth noting that T currently has a PEG ratio of 3.53. 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 had an average PEG ratio of 3.36 as trading concluded yesterday.

The Wireless National industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 203, this industry ranks in the bottom 20% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.