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

In the recent trading session, AT&T (T) closed at $28.48, reflecting an increase of +0.71% compared to the previous day. This performance exceeded the S&P 500's daily gain of 0.38%. In contrast, the Dow Jones dipped slightly by 0.03%, while the Nasdaq, with its focus on technology stocks, saw an appreciation of 0.87%.

Over the past month, shares of AT&T have risen by 2.02%, outperforming the Computer and Technology sector, which experienced a decline of 8.94%, and the S&P 500, which saw a loss of 5.59%.

Investors are keenly awaiting the upcoming earnings report from AT&T, set to be released on April 23, 2025. Anticipations are that the company will post an earnings per share (EPS) of $0.52, translating to a decrease of 5.45% when compared to the same quarter last year. Revenue is projected to reach $30.51 billion, indicating a modest increase of 1.6% from the same quarter the previous year.

Looking at the broader fiscal year, estimates from Zacks Consensus predict earnings of $2.14 per share and total revenues of $124.15 billion. These figures reveal anticipated changes of -5.31% for earnings and +1.48% for revenue year-over-year.

Investors should also monitor any revisions made to analyst forecasts regarding AT&T, as these changes can signal shifting business dynamics. Positive revisions often reflect growing optimism from analysts about the company's profitability and performance.

Research has shown a correlation between estimate revisions and subsequent stock price performance. To assist investors in making informed decisions, a rating system known as Zacks Rank was created. This system incorporates estimate changes and gives a straightforward rating from #1 (Strong Buy) to #5 (Strong Sell). Stocks rated #1 have been shown to average a 25% annual return since 1988. Currently, AT&T holds a Zacks Rank of #3 (Hold), with the consensus EPS estimate declining by 1.72% over the past month.

In terms of valuation, AT&T's Forward P/E ratio stands at 13.22, which is notably lower than the industry average Forward P/E of 21.98.

It's also essential to note that AT&T has a PEG ratio of 3.24. The PEG ratio is similar to the P/E ratio but also considers the company's anticipated earnings growth rate. As of the last trading session, the Wireless National industry held a PEG ratio of 3.24.

The Wireless National industry is part of the Computer and Technology sector and currently holds a Zacks Industry Rank of 29, placing it in the top 12% of more than 250 industries assessed.

This Zacks Industry Rank evaluates the strength of various industry groups based on the average Zacks Rank of the stocks within them. Research indicates that industries rated in the top 50% significantly outperform those in the bottom half.

To stay updated with stock-moving metrics and other important information about AT&T and similar stocks, utilizing resources such as financial news platforms will be beneficial.

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