AT&T (T) Stock Sinks As Market Gains: Here's Why

In the latest trading session, AT&T (T) closed at $20.70, marking a -5.13% move from the previous day. This change lagged the S&P 500's 0.79% gain on the day. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 1.52%.

Shares of the telecommunications company have depreciated by 11.12% over the course of the past month, underperforming the Computer and Technology sector's loss of 4.61%, and the S&P 500's loss of 1.82%.

Investors will be eagerly watching for the performance of AT&T in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 22, 2026. In that report, analysts expect AT&T to post earnings of $0.59 per share. This would mark year-over-year growth of 9.26%. At the same time, our most recent consensus estimate is projecting a revenue of $31.99 billion, reflecting a 3.71% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.3 per share and revenue of $129.78 billion, indicating changes of +8.49% and +3.29%, respectively, compared to the previous year.

Any recent changes to analyst estimates for AT&T should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. AT&T is currently a Zacks Rank #3 (Hold).

In terms of valuation, AT&T is presently being traded at a Forward P/E ratio of 9.47. This indicates a discount in contrast to its industry's Forward P/E of 10.88.

We can additionally observe that T currently boasts a PEG ratio of 0.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Wireless National industry had an average PEG ratio of 1.05 as trading concluded yesterday.

Story Continues

The Wireless National industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 176, this industry ranks in the bottom 28% of all industries, numbering over 250.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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

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