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

The most recent trading session for AT&T (T) saw the stock close at $22.53, reflecting a +0.94% increase from its previous day’s closing price. This performance outpaced the S&P 500, which experienced a gain of 0.53% during the same trading period. In comparison, the Dow Jones Industrial Average rose by 0.93%, while the Nasdaq, a technology-focused index, saw a modest increase of 0.22%.

Despite this daily gain, the shares of AT&T have declined by 2.75% over the last month. This decline contrasts with the Computer and Technology sector, which has appreciated by 3.02%, as well as the S&P 500’s gain of 2.69% over the same timeframe.

Looking forward, investors will be keen to observe the results of AT&T’s upcoming earnings report, expected to be released on January 27, 2025. Analysts predict that the company will report earnings of $0.48 per share, which indicates a year-over-year decline of 11.11%. Additionally, the Zacks Consensus Estimate for revenue is forecasted at approximately $32.29 billion, signaling a modest growth of 0.83% from the prior year.

Furthermore, stakeholders should closely monitor any recent changes in analyst estimates for AT&T, as these adjustments often reflect the latest business trends. Positive revisions usually indicate that analysts have a favorable outlook on the company’s operations and profitability potential.

Research indicates a direct correlation between changes in estimates and subsequent stock price movements. Investors can leverage this information through the Zacks Rank, a rating system based on these estimate fluctuations.

The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell), with a notable track record of outperforming the market. Historically, stocks rated as #1 have yielded an average annual return of +25% since 1988. In the past month, the Zacks Consensus EPS estimate for AT&T has increased by 1.68%. Currently, AT&T holds a Zacks Rank of #4 (Sell).

With respect to valuation, AT&T is trading at a Forward P/E ratio of 10.43, which is significantly lower than its industry average of 18.51. This suggests that AT&T shares are currently undervalued compared to its peers.

The PEG ratio for AT&T stands at 3.48. This ratio is similar to the P/E ratio but also accounts for expected earnings growth. As of the latest figures, the Wireless National industry has an average PEG ratio of 3.27.

The Wireless National sector, where AT&T operates, falls under the broader Computer and Technology industry, which has a Zacks Industry Rank of 192, placing it in the lower 24% out of more than 250 industries. This assessment considers the average Zacks Rank of all stocks within a specific industry group.

It’s worth mentioning that industries ranked in the top 50% usually outperform those in the bottom half by a factor of 2 to 1.

For ongoing updates on stock-impacting metrics and significant developments, investors should continuously check stock market analytics.

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