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AT&T (T) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, AT&T (T - Free Report) closed at $31.71, marking a +1.5% move from the previous day. This change outpaced the S&P 500's 1.09% gain on the day. At the same time, the Dow added 1.13%, and the tech-heavy Nasdaq gained 1.51%.

Prior to today's trading, shares of the telecommunications company had gained 2.46% over the past month. This has outpaced the Computer and Technology sector's loss of 0.28% and the S&P 500's gain of 1.92% in that time.

T will be looking to display strength as it nears 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 $48.47 billion, up 16.3% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.50 per share and revenue of $174.97 billion, which would represent changes of +14.75% and +8.99%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for T. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. T is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, T currently has a Forward P/E ratio of 8.91. This valuation marks a discount compared to its industry's average Forward P/E of 34.41.

We can also see that T currently has a PEG ratio of 1.72. 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 currently had an average PEG ratio of 4.42 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 38, putting it in the top 15% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the 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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