AT&T (T) closed at $28.61 in the latest trading session, marking a -0.49% move from the prior day. This change lagged the S&P 500’s 0.23% gain on the day. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.43%.
Heading into today, shares of the telecommunications company had lost 5.98% over the past month, lagging the Computer and Technology sector’s gain of 4.19% and the S&P 500’s gain of 3.86% in that time.
Investors will be hoping for strength from T as it approaches its next earnings release, which is expected to be January 27, 2021. In that report, analysts expect T to post earnings of $0.73 per share. This would mark a year-over-year decline of 17.98%. Our most recent consensus estimate is calling for quarterly revenue of $44.54 billion, down 4.86% from the year-ago period.
Investors might also notice recent changes to analyst estimates for T. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business 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 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. Within the past 30 days, our consensus EPS projection has moved 0.33% lower. T is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note T’s current valuation metrics, including its Forward P/E ratio of 8.95. This valuation marks a discount compared to its industry’s average Forward P/E of 27.11.
Investors should also note that T has a PEG ratio of 3.06 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. Wireless National stocks are, on average, holding a PEG ratio of 2.83 based on yesterday’s closing prices.
The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 115, which puts it in the top 46% 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.
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