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

In the latest trading session, AT&T (T) closed at $29.44, marking a -0.91% move from the previous day. This move lagged the S&P 500's daily gain of 0.08%.

Prior to today's trading, shares of the telecommunications company had lost 5.2% over the past month. This has lagged the Computer and Technology sector's loss of 1.97% and the S&P 500's gain of 0.41% in that time.

Investors will be hoping for strength from T as it approaches its next earnings release. The company is expected to report EPS of $0.77, down 7.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $42.4 billion, up 3.54% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.16 per share and revenue of $172.71 billion, which would represent changes of -0.63% and +0.56%, respectively, from the prior year.

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Investors might also notice 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate has moved 0.48% higher 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 9.39. Its industry sports an average Forward P/E of 51.12, so we one might conclude that T is trading at a discount comparatively.

We can also see that T currently has a PEG ratio of 3.05. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Wireless National was holding an average PEG ratio of 2.56 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 34, putting it in the top 14% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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