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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 $32.40, marking a +0.14% move from the previous day. This change outpaced the S&P 500's 0.11% gain on the day. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq gained 0.19%.

Prior to today's trading, shares of the telecommunications company had gained 8.12% over the past month. This has outpaced the Computer and Technology sector's gain of 5.46% and the S&P 500's gain of 3.84% in that time.

Wall Street will be looking for positivity from T as it approaches its next earnings report date. This is expected to be April 24, 2019. On that day, T is projected to report earnings of $0.85 per share, which would represent no growth from the year-ago period. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $45.07 billion, up 18.48% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.59 per share and revenue of $183.84 billion, which would represent changes of +1.99% and +7.67%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for T. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.18% lower. T currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that T has a Forward P/E ratio of 9.01 right now. Its industry sports an average Forward P/E of 36.96, so we one might conclude that T is trading at a discount comparatively.

Meanwhile, T's PEG ratio is currently 1.37. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless National was holding an average PEG ratio of 2.94 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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




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