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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 the most recent trading day at $35.14, moving +0.51% from the previous trading session. This change lagged the S&P 500's 1.27% gain on the day. At the same time, the Dow added 1.25%, and the tech-heavy Nasdaq gained 1.48%.

Prior to today's trading, shares of the telecommunications company had gained 2.67% over the past month. This has outpaced the Computer and Technology sector's loss of 6.31% and the S&P 500's loss of 4.37% in that time.

Investors will be hoping for strength from T as it approaches its next earnings release. On that day, T is projected to report earnings of $0.94 per share, which would represent year-over-year growth of 4.44%. Our most recent consensus estimate is calling for quarterly revenue of $45.45 billion, down 0.62% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.57 per share and revenue of $182.76 billion. These totals would mark changes of +1.42% and +7.03%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for T. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. T is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, T is currently trading at a Forward P/E ratio of 9.78. Its industry sports an average Forward P/E of 15.52, so we one might conclude that T is trading at a discount comparatively.

Also, we should mention that T has a PEG ratio of 2.21. 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 2.21 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 83, putting it in the top 33% 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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