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AT&T (T) Stock Sinks As Market Gains: Here's Why

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AT&T (T - Free Report) ended the recent trading session at $27.55, demonstrating a -2.44% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.34%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.42%.

The telecommunications company's shares have seen a decrease of 2.89% over the last month, not keeping up with the Computer and Technology sector's gain of 8.07% and the S&P 500's gain of 3.54%.

Investors will be eagerly watching for the performance of AT&T in its upcoming earnings disclosure. The company's earnings report is set to be unveiled 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.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.05 per share and a revenue of $124.99 billion, signifying shifts of -9.29% and +2.17%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for AT&T. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained stagnant. As of now, AT&T holds a Zacks Rank of #3 (Hold).

In the context of valuation, AT&T is at present trading with a Forward P/E ratio of 13.79. For comparison, its industry has an average Forward P/E of 21.31, 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 3.62. 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. As the market closed yesterday, the Wireless National industry was having an average PEG ratio of 3.39.

The Wireless National industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 218, finds itself in the bottom 12% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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