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Here's Why AT&T (T) Fell More Than Broader Market

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AT&T (T - Free Report) closed at $22.35 in the latest trading session, marking a -2.04% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.1% for the day. Elsewhere, the Dow saw an upswing of 0.35%, while the tech-heavy Nasdaq depreciated by 0.43%.

The telecommunications company's shares have seen a decrease of 8.83% over the last month, not keeping up with the Computer and Technology sector's loss of 2.15% and the S&P 500's loss of 1.34%.

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 July 22, 2026. In that report, analysts expect AT&T to post earnings of $0.59 per share. This would mark year-over-year growth of 9.26%. Our most recent consensus estimate is calling for quarterly revenue of $31.99 billion, up 3.71% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.3 per share and revenue of $129.78 billion. These totals would mark changes of +8.49% and +3.29%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AT&T. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. At present, AT&T boasts a Zacks Rank of #3 (Hold).

In terms of valuation, AT&T is currently trading at a Forward P/E ratio of 9.9. Its industry sports an average Forward P/E of 11.36, so one might conclude that AT&T is trading at a discount comparatively.

Meanwhile, T's PEG ratio is currently 0.95. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Wireless National stocks are, on average, holding a PEG ratio of 1.11 based on yesterday's closing prices.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 28% 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.

To follow T in the coming trading sessions, be sure to utilize Zacks.com.

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