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

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AT&T (T - Free Report) closed at $37.84 in the latest trading session, marking a +1.1% move from the prior day. This move outpaced the S&P 500's daily gain of 0.51%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.75%.

Heading into today, shares of the telecommunications company had gained 6.49% over the past month, outpacing the Computer and Technology sector's gain of 2.59% and the S&P 500's gain of 3.44% in that time.

Investors will be hoping for strength from T as it approaches its next earnings release, which is expected to be October 23, 2019. In that report, analysts expect T to post earnings of $0.89 per share. This would mark a year-over-year decline of 1.11%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $45.30 billion, down 0.96% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.58 per share and revenue of $182.54 billion, which would represent changes of +1.7% and +6.9%, respectively, from the prior year.

Any recent changes to analyst estimates for T should also be noted by investors. Recent revisions tend to reflect the latest near-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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. T is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note T's current valuation metrics, including its Forward P/E ratio of 10.47. This valuation marks a discount compared to its industry's average Forward P/E of 16.07.

Also, we should mention that T has a PEG ratio of 2.35. 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 2.35 as of yesterday's close.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% 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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