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AT&T (T) Stock Drops Despite Market Gains: Important Facts to Note

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AT&T (T - Free Report) closed at $24.34 in the latest trading session, marking a -1.5% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.62% for the day. Meanwhile, the Dow gained 0.99%, and the Nasdaq, a tech-heavy index, added 0.65%.

Heading into today, shares of the telecommunications company had lost 0.52% over the past month, outpacing the Computer and Technology sector's loss of 1.47% and lagging the S&P 500's gain of 0.59%.

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 January 28, 2026. On that day, AT&T is projected to report earnings of $0.47 per share, which would represent a year-over-year decline of 12.96%. Meanwhile, our latest consensus estimate is calling for revenue of $32.75 billion, up 1.4% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.06 per share and a revenue of $124.95 billion, indicating changes of -8.85% and 0%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for AT&T. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.58% increase. 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 10.97 right now. This expresses a discount compared to the average Forward P/E of 16.75 of its industry.

It's also important to note that T currently trades at a PEG ratio of 1.32. 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 industry had an average PEG ratio of 2.41 as trading concluded yesterday.

The Wireless National industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 110, placing it within the top 45% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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