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

AT&T (T) closed at $26.96 in the latest trading session, marking a -0.92% move from the prior day. This change lagged the S&P 500's 0.08% loss on the day.

Heading into today, shares of the telecommunications company had lost 1.13% over the past month, lagging the Computer and Technology sector's loss of 0.11% and outpacing the S&P 500's loss of 1.81% in that time.

T will be looking to display strength as it nears its next earnings release, which is expected to be October 21, 2021. The company is expected to report EPS of $0.79, up 3.95% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $41.54 billion, down 1.88% from the year-ago period.

T's full-year Zacks Consensus Estimates are calling for earnings of $3.32 per share and revenue of $171.86 billion. These results would represent year-over-year changes of +4.4% and +0.06%, respectively.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.13% higher. T is currently a Zacks Rank #3 (Hold).

Investors should also note T's current valuation metrics, including its Forward P/E ratio of 8.2. For comparison, its industry has an average Forward P/E of 37.51, which means T is trading at a discount to the group.

Investors should also note that T has a PEG ratio of 2.12 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. T's industry had an average PEG ratio of 2.12 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 224, which puts it in the bottom 12% 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.

To follow T in the coming trading sessions, be sure to utilize Zacks.com.

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