AT&T Stock Analysis: What to Consider for Future Performance

AT&T (T) has become one of the most searched stocks on The telecommunications company has seen a return of +8.4% over the past month, outperforming the Zacks S&P 500 composite which only had a +0.4% change. The Zacks Wireless National industry, to which AT&T belongs, has gained 3.2% over the same period.

When considering the future performance of a stock, it is important to look beyond media reports and rumors. Fundamental factors ultimately drive the decision to buy and hold a stock. One key factor to consider is the revision of earnings estimates by sell-side analysts.

AT&T is expected to post earnings of $0.62 per share for the current quarter, representing a year-over-year change of -8.8%. The consensus earnings estimate for the current fiscal year is $2.43, indicating a change of -5.5% from the prior year. For the next fiscal year, the consensus earnings estimate is $2.49, reflecting a change of +2.6% from the previous year.

The Zacks Rank, a proprietary stock rating tool, takes into account the change in earnings estimates and other factors to determine a stock’s near-term price performance. With a recent change in the consensus estimate, AT&T currently holds a Zacks Rank #3 (Hold).

In addition to earnings growth, revenue growth also plays a vital role in determining a company’s financial health. The consensus sales estimate for AT&T shows a year-over-year change of +0.5% for the current quarter. For the current and next fiscal years, estimates indicate -5.7% and +1.1% changes in revenue, respectively.

AT&T reported revenues of $29.92 billion in the last reported quarter, representing a year-over-year change of +0.9%. The company beat consensus EPS estimates in each of the trailing four quarters.

Considering valuation, AT&T is graded A on the Zacks Value Style Score, indicating that it is trading at a discount to its peers.

While the facts discussed here and other information may provide insight into AT&T’s potential performance, it’s important to note that its Zacks Rank #3 suggests that it may perform in line with the broader market in the near term.