AT&T (T - Free Report) closed at $28.13 in the latest trading session, marking a -0.67% move from the prior day. This change lagged the S&P 500's 1.64% gain on the day. Elsewhere, the Dow gained 0.88%, while the tech-heavy Nasdaq added 2.56%.
Coming into today, shares of the telecommunications company had lost 2.04% in the past month. In that same time, the Computer and Technology sector gained 3.41%, while the S&P 500 gained 2.44%.
T will be looking to display strength as it nears its next earnings release, which is expected to be October 22, 2020. The company is expected to report EPS of $0.77, down 18.09% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $41.63 billion, down 6.63% from the year-ago period.
T's full-year Zacks Consensus Estimates are calling for earnings of $3.20 per share and revenue of $169.55 billion. These results would represent year-over-year changes of -10.36% and -6.42%, respectively.
Any recent changes to analyst estimates for T should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% lower. T is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that T has a Forward P/E ratio of 8.84 right now. Its industry sports an average Forward P/E of 24.92, so we one might conclude that T is trading at a discount comparatively.
Meanwhile, T's PEG ratio is currently 1.6. 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 4.19 as of yesterday's close.
The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 124, putting it in the top 50% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.