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AT&T (T) Gains But Lags Market: What You Should Know

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AT&T (T - Free Report) closed at $30.63 in the latest trading session, marking a +0.36% move from the prior day. This change lagged the S&P 500's 0.56% gain on the day. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq lost 0.38%.

Coming into today, shares of the telecommunications company had lost 10.55% in the past month. In that same time, the Computer and Technology sector lost 8.65%, while the S&P 500 lost 6.76%.

Investors will be hoping for strength from T as it approaches its next earnings release, which is expected to be January 30, 2019. On that day, T is projected to report earnings of $0.84 per share, which would represent year-over-year growth of 7.69%. Meanwhile, our latest consensus estimate is calling for revenue of $48.28 billion, up 15.86% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.51 per share and revenue of $174.72 billion. These totals would mark changes of +15.08% and +8.83%, respectively, from last year.

Any recent changes to analyst estimates for T should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 0.38% lower. T is currently a Zacks Rank #3 (Hold).

In terms of valuation, T is currently trading at a Forward P/E ratio of 8.69. For comparison, its industry has an average Forward P/E of 50.45, which means T is trading at a discount to the group.

Investors should also note that T has a PEG ratio of 2.44 right now. 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 2.46 based on yesterday's closing prices.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 42, putting it in the top 16% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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