AT&T (T) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, AT&T (T) closed at $32.03, marking a -0.53% move from the previous day. This change lagged the S&P 500's 0.06% loss on the day. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.1%.

Heading into today, shares of the telecommunications company had gained 6.34% over the past month, outpacing the Computer and Technology sector's gain of 5.14% and the S&P 500's gain of 4.3% 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. The company is expected to report EPS of $0.85, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $45.09 billion, up 18.55% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.59 per share and revenue of $183.93 billion, which would represent changes of +1.99% and +7.71%, respectively, from the prior year.

It is also important to note the 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 0.12% 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 8.96. This valuation marks a discount compared to its industry's average Forward P/E of 36.3.

Also, we should mention that T has a PEG ratio of 1.36. 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. T's industry had an average PEG ratio of 1.73 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 200, putting it in the bottom 22% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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