AT&T (T) Gains As Market Dips: What You Should Know
AT&T (T) closed at $31.42 in the latest trading session, marking a +0.1% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.46%. Meanwhile, the Dow lost 0.13%, and the Nasdaq, a tech-heavy index, lost 0.63%.
Heading into today, shares of the telecommunications company had gained 0.54% over the past month, lagging the Computer and Technology sector's gain of 2.74% and the S&P 500's gain of 1.08% 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 $0.86, up 1.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $45.27 billion, up 19% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.58 per share and revenue of $184.51 billion, which would represent changes of +1.7% and +8.05%, respectively, from the prior year.
It is also important to note the 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. T currently has a Zacks Rank of #3 (Hold).
Digging into valuation, T currently has a Forward P/E ratio of 8.78. This valuation marks a discount compared to its industry's average Forward P/E of 29.23.
Investors should also note that T has a PEG ratio of 1.33 right now. 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 industry currently had an average PEG ratio of 3.07 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 191, which puts it in the bottom 26% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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.