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AT&T (T) Gains As Market Dips: What You Should Know

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In the latest trading session, AT&T (T - Free Report) closed at $25.96, marking a +2.06% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.25%. Meanwhile, the Dow experienced a drop of 0.02%, and the technology-dominated Nasdaq saw a decrease of 0.52%.

The stock of telecommunications company has risen by 9.56% in the past month, leading the Computer and Technology sector's gain of 7.57% and the S&P 500's gain of 4.34%.

Analysts and investors alike will be keeping a close eye on the performance of AT&T in its upcoming earnings disclosure. The company's earnings report is set to go public on October 21, 2026. The company is predicted to post an EPS of $0.62, indicating a 14.81% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $31.74 billion, indicating a 3.34% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.35 per share and revenue of $129.27 billion, which would represent changes of +10.85% and +2.88%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for AT&T. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. AT&T is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, AT&T is currently being traded at a Forward P/E ratio of 10.84. Its industry sports an average Forward P/E of 11.63, so one might conclude that AT&T is trading at a discount comparatively.

It is also worth noting that T currently has a PEG ratio of 1.03. 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. T's industry had an average PEG ratio of 1.21 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 176, placing it within the bottom 29% of over 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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