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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) ended the recent trading session at $23.68, demonstrating a -1.31% change from the preceding day's closing price. This change lagged the S&P 500's 0.16% gain on the day. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq increased by 0.26%.

Heading into today, shares of the telecommunications company had lost 2.4% over the past month, lagging the Computer and Technology sector's loss of 0.85% and the S&P 500's gain of 1.89%.

The upcoming earnings release of AT&T will be of great interest to investors. The company's earnings report is expected on January 28, 2026. The company is expected to report EPS of $0.47, down 12.96% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $32.75 billion, up 1.4% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.06 per share and revenue of $124.95 billion. These totals would mark changes of -8.85% and 0%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for AT&T. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.9% higher. AT&T currently has a Zacks Rank of #3 (Hold).

With respect to valuation, AT&T is currently being traded at a Forward P/E ratio of 10.66. This indicates a discount in contrast to its industry's Forward P/E of 16.73.

One should further note that T currently holds a PEG ratio of 1.31. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Wireless National industry held an average PEG ratio of 2.4.

The Wireless National industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 208, finds itself in the bottom 16% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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