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AT&T (T) Gains As Market Dips: What You Should Know

AT&T (T) closed at $30.35 in the latest trading session, marking a +0.2% move from the prior day. This change outpaced the S&P 500's 1.66% loss on the day. Meanwhile, the Dow lost 1.56%, and the Nasdaq, a tech-heavy index, lost 3.03%.

Heading into today, shares of the telecommunications company had lost 6.8% over the past month, lagging the Computer and Technology sector's loss of 5.28% and the S&P 500's loss of 2.43% in that time.

Investors will be hoping for strength from T as it approaches its next earnings release, which is expected to be January 30, 2019. The company is expected to report EPS of $0.84, up 7.69% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $48.54 billion, up 16.48% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.51 per share and revenue of $175.11 billion, which would represent changes of +15.08% and +9.07%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for T. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.26% 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 8.62. Its industry sports an average Forward P/E of 34.33, so we one might conclude that T is trading at a discount comparatively.

It is also worth noting that T currently has a PEG ratio of 2.42. 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. T's industry had an average PEG ratio of 2.52 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 41, putting it in the top 16% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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