
In the latest close session, AT&T (T) was down 1.71% at $27.62. This change lagged the S&P 500's 0.28% gain on the day. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.09%.
The telecommunications company's stock has dropped by 0.85% in the past month, falling short of the Computer and Technology sector's gain of 6.2% and the S&P 500's gain of 4.37%.
The investment community will be closely monitoring the performance of AT&T in its forthcoming earnings report. The company is scheduled to release its earnings on July 23, 2025. In that report, analysts expect AT&T to post earnings of $0.51 per share. This would mark a year-over-year decline of 10.53%. Our most recent consensus estimate is calling for quarterly revenue of $30.53 billion, up 2.48% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.03 per share and revenue of $124.26 billion. These totals would mark changes of -10.18% and +1.57%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for AT&T. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.06% lower. At present, AT&T boasts a Zacks Rank of #3 (Hold).
Investors should also note AT&T's current valuation metrics, including its Forward P/E ratio of 13.86. Its industry sports an average Forward P/E of 22.03, so one might conclude that AT&T is trading at a discount comparatively.
It is also worth noting that T currently has a PEG ratio of 3.51. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Wireless National stocks are, on average, holding a PEG ratio of 3.42 based on yesterday's closing prices.
The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 36% of all 250+ industries.
Story continuesThe Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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