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AT&T (T) Stock Sinks As Market Gains: Here's Why

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In the latest trading session, AT&T (T - Free Report) closed at $21.28, marking a -1.25% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.38%. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq added 0.9%.

Shares of the telecommunications company witnessed a loss of 7.47% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 1.5%, and the S&P 500's gain of 1.27%.

Market participants will be closely following the financial results of AT&T in its upcoming release. The company plans to announce its earnings on July 22, 2026. The company is predicted to post an EPS of $0.59, indicating a 9.26% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $32.1 billion, up 4.05% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.32 per share and revenue of $130.05 billion, indicating changes of +9.43% and +3.5%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for AT&T. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. AT&T is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that AT&T has a Forward P/E ratio of 9.31 right now. This indicates a discount in contrast to its industry's Forward P/E of 10.4.

Meanwhile, T's PEG ratio is currently 0.88. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Wireless National was holding an average PEG ratio of 1.08 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 214, finds itself in the bottom 14% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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