Why AT&T (T) Dipped More Than Broader Market Today

In the latest close session, AT&T (T) was down 1.81% at $25.72. This change lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.29%.

Shares of the telecommunications company have appreciated by 10.46% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.81%, and the S&P 500's gain of 2.08%.

Analysts and investors alike will be keeping a close eye on the performance of AT&T in its upcoming earnings disclosure. The company's earnings report is set to go public on October 21, 2026. The company is forecasted to report an EPS of $0.62, showcasing a 14.81% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.74 billion, up 3.34% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.35 per share and a revenue of $129.27 billion, representing changes of +10.85% and +2.88%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AT&T. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate has remained steady. AT&T is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, AT&T is presently trading at a Forward P/E ratio of 11.17. For comparison, its industry has an average Forward P/E of 11.61, which means AT&T is trading at a discount to the group.

Investors should also note that T has a PEG ratio of 1.3 right now. 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 1.51 at yesterday's closing price.

The Wireless National industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 15% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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