Yahoo Finance AT&T (T) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, AT&T (T) closed at $27.18, marking a +1.42% move from the previous day. This change outpaced the S&P 500's 0.08% gain on the day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 4.81%.
Heading into today, shares of the telecommunications company had gained 14.3% over the past month, outpacing the Computer and Technology sector's loss of 2.99% and the S&P 500's gain of 0.64% in that time.
Wall Street will be looking for positivity from AT&T as it approaches its next earnings report date. This is expected to be January 26, 2022. In that report, analysts expect AT&T to post earnings of $0.76 per share. This would mark year-over-year growth of 1.33%. Our most recent consensus estimate is calling for quarterly revenue of $40.7 billion, down 10.91% from the year-ago period.
Any recent changes to analyst estimates for AT&T should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. AT&T is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, AT&T is currently trading at a Forward P/E ratio of 8.42. For comparison, its industry has an average Forward P/E of 18.91, which means AT&T is trading at a discount to the group.
It is also worth noting that T currently has a PEG ratio of 2.3. 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 2.67 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 177, putting it in the bottom 31% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AT&T Inc. (T) : Free Stock Analysis Report
To read this article on Zacks.com click here.
