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Why AT&T (T) Dipped More Than Broader Market Today

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AT&T (T - Free Report) closed the most recent trading day at $27.16, moving -1.98% from the previous trading session. This change lagged the S&P 500's 0.08% loss on the day. At the same time, the Dow lost 0.61%, and the tech-heavy Nasdaq gained 0.08%.

Shares of the telecommunications company witnessed a gain of 1.09% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.38%, and the S&P 500's loss of 2.16%.

The upcoming earnings release of AT&T will be of great interest to investors. The company's earnings report is expected on April 22, 2026. The company is predicted to post an EPS of $0.55, indicating a 7.84% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $31.13 billion, reflecting a 1.65% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.29 per share and revenue of $128.04 billion. These totals would mark changes of +8.02% and +1.9%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for AT&T. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 has shifted 0.5% downward. AT&T is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, AT&T is currently being traded at a Forward P/E ratio of 12.11. For comparison, its industry has an average Forward P/E of 12.86, which means AT&T is trading at a discount to the group.

We can also see that T currently has a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Wireless National industry had an average PEG ratio of 1.78 as trading concluded yesterday.

The Wireless National industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 213, finds itself in the bottom 14% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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