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AT&T (T) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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AT&T (T - Free Report) closed the most recent trading day at $28.35, moving -1.53% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.29%. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq decreased by 0.34%.

Shares of the telecommunications company have appreciated by 0.81% over the course of the past month, underperforming the Computer and Technology sector's gain of 8.98%, and the S&P 500's gain of 3.08%.

The investment community will be paying close attention to the earnings performance of AT&T in its upcoming release. The company is slated to reveal its earnings on October 22, 2025. On that day, AT&T is projected to report earnings of $0.54 per share, which would represent a year-over-year decline of 10%. Simultaneously, our latest consensus estimate expects the revenue to be $30.96 billion, showing a 2.47% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.05 per share and revenue of $124.99 billion, indicating changes of -9.29% and +2.17%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for AT&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 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, AT&T boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that AT&T has a Forward P/E ratio of 14.06 right now. This indicates a discount in contrast to its industry's Forward P/E of 21.44.

It's also important to note that T currently trades at a PEG ratio of 3.69. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Wireless National was holding an average PEG ratio of 3.34 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 182, positioning it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow T in the coming trading sessions, be sure to utilize Zacks.com.


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