Home Latest News AT&T Inc. (T) Is a Trending Stock: Facts to Know Before Betting...

AT&T Inc. (T) Is a Trending Stock: Facts to Know Before Betting on It – Yahoo Finance

AT&T (T) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this telecommunications company have returned -10.5%, compared to the Zacks S&P 500 composite's +1.1% change. During this period, the Zacks Wireless National industry, which AT&T falls in, has lost 9.7%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
AT&T is expected to post earnings of $0.60 per share for the current quarter, representing a year-over-year change of -7.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.5%.
The consensus earnings estimate of $2.41 for the current fiscal year indicates a year-over-year change of -6.2%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $2.46 indicates a change of +2.4% from what AT&T is expected to report a year ago. Over the past month, the estimate has changed -0.5%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AT&T is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth Forecast
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of AT&T, the consensus sales estimate of $30.18 billion for the current quarter points to a year-over-year change of +1.8%. The $122.21 billion and $123.74 billion estimates for the current and next fiscal years indicate changes of -5.4% and +1.3%, respectively.
Last Reported Results and Surprise History
AT&T reported revenues of $30.14 billion in the last reported quarter, representing a year-over-year change of -20.9%. EPS of $0.60 for the same period compares with $0.77 a year ago.
Compared to the Zacks Consensus Estimate of $30.34 billion, the reported revenues represent a surprise of -0.68%. The EPS surprise was +3.45%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates two times over this period.
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
AT&T is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AT&T. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AT&T Inc. (T) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Saving $1 million (or more) for retirement is a great goal to have. Putting that much aside could make it easier to live your preferred lifestyle when you retire, without having to worry about running short of money. However, not … Continue reading → The post What Percentage of Retirees Have a Million Dollars? appeared first on SmartAsset Blog.
A third Nikola battery-electric truck burst into flames inside a lithium supplier’s building, but the company says recalled trucks are still safe to drive. The post 3rd Nikola battery-electric truck catches fire appeared first on FreightWaves.
(Bloomberg) — There’s little that can dent the world’s top performing stock this year, not even its founder being sent to prison for insider trading.Most Read from BloombergIndia’s Moment Has Arrived, and Modi Wants a New Global OrderFed Set to Double Its Economic Growth Forecast After Strong US DataSoaring US Dollar Raises Alarm as China, Japan Escalate FX PushbackStocks Retreat After Hot ISM Fuels Fed-Hike Wagers: Markets WrapChina Slowdown Means It May Never Overtake US Economy, Forecast Sho
Not long ago, data was being touted as the ‘new oil,’ while in some quarters that epithet has been bestowed at times on copper, or even, fresh water. However, according to a statement made by Elon Musk, ‘lithium batteries are the new oil.’ That may not be such a surprising take, considering that lithium plays a crucial role in the rechargeable battery technology needed to power electric vehicles (EVs). While Tesla currently sources its lithium from several producers, it is also in the process of
I’m 77 years old and I requested my 401(k) fund administrator to prepare my RMD. I was told I do not have to withdraw my money if I am still employed. Please confirm if this in fact an IRS rule or that of the fund management company? -Bea That is correct, Bea. If you are […] The post Ask an Advisor: I’m 77 and Still Working. Is it True That I Don’t Have to Take RMDs? appeared first on SmartReads by SmartAsset.
JPMorgan said "de-dollarization risk for Western economies mostly relates to inflation and their debt burden."
The average rate on the 30-year fixed mortgage was 7.18% last week after surging to 7.24% the week prior.
Musk earned an unprecedented $23 billion from Tesla two years ago after hitting performance targets.
(Bloomberg) — Apple Inc. suffered its worst stock decline in a month following a report that Chinese government agencies have barred staff from using the iPhone and other foreign-branded devices at work.Most Read from BloombergIndia’s Moment Has Arrived, and Modi Wants a New Global OrderFed Set to Double Its Economic Growth Forecast After Strong US DataSoaring US Dollar Raises Alarm as China, Japan Escalate FX PushbackStocks Retreat After Hot ISM Fuels Fed-Hike Wagers: Markets WrapChina Slowdow
How much income do you need for a $700K purchase?
Kroger Co and Albertsons Cos Inc are nearing a deal they hope will secure U.S. regulatory clearance for their proposed $24.5 billion merger, by selling more than 400 grocery stores to C&S Wholesale Grocers for nearly $2 billion, according to people familiar with the matter. The deal would give privately held C&S, primarily a supplier rather than an operator of grocery stores, a much more significant footprint. It currently operates about two dozen stores under the Grand Union and Piggly Wiggly brands.
Where do millionaires keep their money? High net worth individuals put money into different classifications of financial and real assets, including stocks, mutual funds, retirement accounts and real estate. Most of the 20.27 million millionaires in the U.S. did not … Continue reading → The post Where Do Millionaires Keep Their Money? appeared first on SmartAsset Blog.
If there's one thing cash investors love, it's high dividend yields that can juice up portfolio returns. Buying high-yielding dividend stocks often works well — until and unless the dividend gets cut or suspended. An unusually high dividend yield is sometimes called a "yield trap," meaning that while the yield is alluring, the declining share price is often a reflection of weak company fundamentals and declining earnings. Another event that perks investor interest is a stock split, as one can ow
Rates on 30-year mortgages jumped by more than an eighth of a percentage point, with rate averages for all but a couple loan types climbing by double-digit basis points.
The Fed's interest-rate hikes will have severe, delayed impacts on households, businesses, and the wider US economy, Stephanie Pomboy says.
(Reuters) -Enbridge shares tumbled nearly 7% to an over four-year low on Wednesday, as investors fretted over the Canadian pipeline operator's debt load from the surprise $14 billion bid for three natural gas distribution companies from Dominion Energy. The move to acquire East Ohio Gas, Questar Gas, and Public Service Co of North Carolina would double Enbridge's gas distribution business and make it the largest gas utility by volume in North America, with the unit accounting for a bit less than a fourth of the company's overall business mix. The deal announced on Tuesday is seen as a bet on the future of natural gas in a regulated market even as energy companies and consumers transition to a greener future by phasing out fossil fuels.
Is Pfizer stock a buy or a sell as sales of its Covid products continue diving? Is PFE stock a buy or a sell right now?
The Chinese government is banning the use of iPhones by government officials at work, according to The Wall Street Journal.
The Softbank-owned chip firm has also drawn interest from Samsung, Intel, and Advanced Micro Devices in what could mark a revival of the IPO market.
Roku stock soared after the company revealed more cost-cutting initiatives, including layoffs, and boosted its Q3 revenue and adjusted EBITDA guidance.