AT&T (T) Gains But Lags Market: What You Should Know

AT&T (T) closed the most recent trading day at $28.15, moving +0.25% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.86%. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq added 0.38%.

Coming into today, shares of the telecommunications company had lost 8.65% in the past month. In that same time, the Computer and Technology sector lost 5.08%, while the S&P 500 lost 7.55%.

Investors will be hoping for strength from T as it approaches its next earnings release, which is expected to be January 30, 2019. In that report, analysts expect T to post earnings of $0.85 per share. This would mark year-over-year growth of 8.97%. Our most recent consensus estimate is calling for quarterly revenue of $48.44 billion, up 16.24% from the year-ago period.

T’s full-year Zacks Consensus Estimates are calling for earnings of $3.52 per share and revenue of $174.05 billion. These results would represent year-over-year changes of +15.41% and +8.41%, respectively.

It is also important to note the recent changes to analyst estimates for 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.

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 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. The Zacks Consensus EPS estimate has moved 0.1% higher within the past month. T is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, T is currently trading at a Forward P/E ratio of 7.98. This represents a discount compared to its industry’s average Forward P/E of 31.71.

Investors should also note that T has a PEG ratio of 1.26 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 industry currently had an average PEG ratio of 4.12 as of yesterday’s close.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 38% 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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Source: Zacks

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