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

AT&T (T) closed the most recent trading day at $30.89, moving +1.01% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 0.08%.

Heading into today, shares of the telecommunications company had gained 11.77% over the past month, outpacing the Computer and Technology sector's gain of 7.59% and the S&P 500's gain of 9.27% in that time.

Investors will be hoping for strength from T as it approaches its nex t earnings release, which is expected to be January 30, 2019. On that day, T is projected to report earnings of $0.85 per share, which would represent year-over-year growth of 8.97%. Our most recent consensus estimate is calling for quarterly revenue of $48.43 billion, up 16.2% from the year-ago period.

Any recent changes to analyst estimates for T should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.06% lower. T is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that T has a Forward P/E ratio of 8.48 right now. Its industry sports an average Forward P/E of 24.55, so we one might conclude that T is trading at a discount comparatively.

Investors should also note that T has a PEG ratio of 1.34 right now. 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. T's industry had an average PEG ratio of 2.07 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 64, which puts it in the top 25% 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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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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