Home Latest News Here is What to Know Beyond Why AT&T Inc. (T) is a...

Here is What to Know Beyond Why AT&T Inc. (T) is a Trending Stock – Yahoo Finance

AT&T (T) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this telecommunications company have returned -0.3%, compared to the Zacks S&P 500 composite's +5% change. During this period, the Zacks Wireless National industry, which AT&T falls in, has lost 3.9%. 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.
Revisions to Earnings Estimates
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.
For the current quarter, AT&T is expected to post earnings of $0.60 per share, indicating a change of -7.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.2% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $2.42 points to a change of -5.8% from the prior year. Over the last 30 days, this estimate has changed +0.7%.
For the next fiscal year, the consensus earnings estimate of $2.48 indicates a change of +2.6% from what AT&T is expected to report a year ago. Over the past month, the estimate has changed +0.8%.
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
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For AT&T, the consensus sales estimate for the current quarter of $30.17 billion indicates a year-over-year change of +1.8%. For the current and next fiscal years, $122.21 billion and $123.66 billion estimates indicate -5.4% and +1.2% changes, 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.
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
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.
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
Berkshire Hathaway earnings showed one of Buffett's oldest investments is shining after a tough 2022.
Intel is the leading candidate to potentially receive billions of dollars in government funding for secure facilities producing microchips for U.S. military and intelligence applications.
Warren Buffett said investors have to "look pretty hard" to unearth the hidden gems in Berkshire's earnings reports. We found three of them.
Can you retire at 65 with $750,000 in a Roth IRA and $1,800 in monthly Social Security? Based on median incomes and the 10x rule, most people will need about $740,000 to finance a secure retirement. So in theory, a $750,000 Roth IRA and $1,800 in Social Security benefits will be enough for many individuals […] The post I Have $750K in a Roth IRA and Will Receive $1,800 Monthly From Social Security. Can I Retire at 65? appeared first on SmartReads by SmartAsset.
I am 57 and have $1.1 million in my 401(k) and $50,000 in a high-yield savings account. I earn $300,000 per year and put $30,000 in my 401(k) each year plus a match on the first 6%. I have a $220,000 mortgage on a home valued at $550,000. I would like to retire at 62 […] The post Ask an Advisor: I Have $1.15 Million Saved and Will Collect $3,500 Per Month in Social Security. Can I Retire at 62? appeared first on SmartReads by SmartAsset.
Rates on 30-year mortgages rates have plunged almost a half percentage point over the last four days, lowering the 30-year average to its cheapest level since September.
It has been a very good year for bitcoin investors. Against a backdrop of multiple bank collapses, a shaky economic macro and recent geopolitical issues, the leading crypto has more than doubled in value in 2023, with investors increasingly viewing bitcoin as a safe haven asset to lean on in troubled times. Of course, the growing mainstream acceptance represents a big change in attitude toward what was not long ago considered an extremely volatile and risky asset. But the good news is that this
To some people, $3 million will sound like a lot. You probably think $3 million is enough to retire if you're among that crowd. But retiring with $3 million at 65 can last depending on your longevity, lifestyle and other … Continue reading → The post Is $3 Million Enough to Retire at 65? appeared first on SmartAsset Blog.
One market expert sees a big chance for investors, but it's not in the household names most are familiar with.
Tesla stock tried to make it five winning days in a row. What had investors excited initially on Monday was a Reuters report from Germany about a new Tesla electric vehicle that will be priced around 25,000 euros, or $27,000. Investors, and car buyers interested in EVs, have long awaited a smaller, lower-priced Tesla.
Investors have mostly had one reaction to drugmakers’ earnings this quarter: Slam that big red “sell” button, and slam it hard. The latest no good, very bad earnings season started with Johnson & Johnson (ticker: JNJ), which on Oct. 17 raised its full-year guidance and announced third quarter earnings that beat Wall Street estimates. Bristol-Myers Squibb (BMY) shares fell 6.4% on Oct. 26 despite an earnings beat.
UPS has bought out a small contingent of senior pilots. An American Airlines regional partner is trying to attract them to fly small jets. The post UPS reduces pilot head count by nearly 200 with buyouts appeared first on FreightWaves.
Kinder Morgan will purchase NextEra Energy Partners’ Texas natural gas line portfolio for $1.815 billion. Kinder Morgan, an energy infrastructure company, said the deal would be funded with cash on hand and short-term debt, though the it is expected to be balance sheet neutral for the long term. NextEra, a limited partnership created by NextEra Energy to manage clean energy projects, said the proceeds would be used to pay off debt associated with the Texas pipeline portfolio and pay down part of its revolving facility.
Take a look at this list of stock market holidays in 2023 to find out whether the market will be open on days like Labor Day, Black Friday, Christmas Eve and more.
Since the Fed began its fight against inflation shares have taken a dive. Now, a select group looks more interesting.
WeWork, the SoftBank Group-backed start-up that was once a darling of Silicon Valley valued at $47bn (£38.7bn), has filed for bankruptcy in the United States.
Inflation rates have cooled to 3.7% from record 9% levels recorded last year, thanks to the Federal Reserve's aggressive interest rate hikes over the past year. However, the median consumer price index still lies significantly above the Fed's target 2% rate, implying further rate hikes down the road. Given the precarious economic scenario, the Fed has temporarily paused rate hikes over the past couple of months, as the Federal Open Market Committee left rates unchanged since July of this year. T
A seismic decision in a massive class-action lawsuit could save home buyers and sellers billions of dollars each year. But the fight is far from over.
Trucking bloodbath expands to lenders as industry experiences one of the sharpest downturns in history. The post Iowa bank failure tied to bad trucking loans appeared first on FreightWaves.
(Bloomberg) — Kinder Morgan Inc. agreed to buy NextEra Energy Partners LP’s South Texas natural gas pipeline assets for $1.815 billion in cash.Most Read from BloombergTrump Testimony Called a ‘Broken Record’ by Judge: Trial UpdateIsrael Latest: Netanyahu Sees a Role in Gaza Security After WarWall Street Faces ‘Reality Check’ After Big Rally: Markets WrapTrump Shouts at Judge and Lawyers in Wild Day on Witness StandAI Pioneer Kai-Fu Lee Builds $1 Billion Startup in Eight MonthsThe STX Midstream