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AT&T (T) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest close session, AT&T (T - Free Report) was down 1.74% at $24.84. This change lagged the S&P 500's daily loss of 0.35%. On the other hand, the Dow registered a loss of 0.45%, and the technology-centric Nasdaq decreased by 0.14%.

The stock of telecommunications company has risen by 1.81% in the past month, leading the Computer and Technology sector's gain of 1.71% and the S&P 500's gain of 1.2%.

Market participants will be closely following the financial results of AT&T in its upcoming release. The company plans to announce its earnings on January 28, 2026. It is anticipated that the company will report an EPS of $0.49, marking a 9.26% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $32.76 billion, up 1.42% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.06 per share and revenue of $124.96 billion, indicating changes of -8.85% and +2.14%, respectively, compared to the previous year.

Any recent changes to analyst estimates for AT&T should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 0.18% higher within the past month. Right now, AT&T possesses a Zacks Rank of #3 (Hold).

In terms of valuation, AT&T is presently being traded at a Forward P/E ratio of 12.28. This signifies a discount in comparison to the average Forward P/E of 18.57 for its industry.

We can additionally observe that T currently boasts a PEG ratio of 1.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Wireless National industry was having an average PEG ratio of 1.48.

The Wireless National industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 68, this industry ranks in the top 28% of all industries, numbering over 250.

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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