AT&T (T) Surpasses Market Returns: Some Facts Worth Knowing

In the most recent trading session, AT&T (T) closed at $28.48, reflecting a positive move of +0.71% from the previous day. This performance outpaced the broader S&P 500, which posted a gain of 0.38%. Interestingly, while AT&T saw a rise, the Dow Jones Industrial Average experienced a slight decline of 0.03%, and the Nasdaq, known for its tech stocks, increased by 0.87%.

Over the past month, AT&T's shares have risen by 2.02%. This is particularly noteworthy given that other stocks in the Computer and Technology sector have recorded a loss of 8.94%, while the S&P 500 showed a decline of 5.59%. AT&T’s positive trajectory is attracting attention.

The upcoming earnings report for AT&T will be closely watched by investors and analysts alike. The company is set to release its earnings on April 23, 2025, with expectations of earnings per share (EPS) at $0.52. This would represent a decrease of 5.45% compared to the same quarter last year. Projections for revenue are around $30.51 billion, which indicates a modest increase of 1.6% compared to the corresponding quarter in the previous year.

For the entire fiscal year, estimates from Zacks Consensus suggest that AT&T could report earnings of $2.14 per share and a revenue total of $124.15 billion. This reflects a change of -5.31% in earnings and a +1.48% growth in revenue from the previous year.

Moreover, it’s essential to monitor any recent changes in analyst forecasts for AT&T. Adjustments in these estimates can provide insights into the current business dynamics. Positive revisions are particularly important, as they often signal higher expectations for the company’s performance and profitability.

Research indicates that these revisions have a significant correlation with stock price movements. To help investors make informed decisions, the Zacks Rank system was developed, which evaluates these estimate changes. The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell). Historically, #1 rated stocks have delivered an average annual return of +25% since 1988. Over the last month, the consensus EPS estimate for AT&T has decreased by 1.72%, currently placing the company at a Zacks Rank of #3 (Hold).

In terms of valuation, AT&T is currently trading with a Forward P/E ratio of 13.22, which is lower than the industry average of 21.98. This could suggest that AT&T is undervalued compared to its peers.

Additionally, AT&T holds a PEG ratio of 3.24. The PEG ratio is similar to the P/E ratio but also takes into account anticipated earnings growth. For context, the average PEG ratio for the Wireless National industry is also recorded at 3.24.

It is important to note that the Wireless National industry falls under the broader Computer and Technology sector and is currently ranked 29th according to the Zacks Industry Rank. This positions it in the top 12% of more than 250 industries, indicating strong overall performance within this group.

The Zacks Industry Rank evaluates the strength of different industry groups by calculating the average Zacks Rank of the stocks within them. Historical data shows that industries in the top half tend to outperform those in the bottom half by a ratio of 2 to 1.

Investors should utilize the resources available at Zacks.com to track these metrics and more as they navigate the market in the days to come.

AT&T, Stocks, Market