AT&T (T) Increases Despite Market Slip: Here's What You Need to Know

AT&T (T) shares rose 1.15% to $27.68 in the most recent trading session, outperforming the S&P 500, though the stock has underperformed both the S&P and its sector over the last month. The company's upcoming earnings, scheduled for July 23, 2025, are projected to show an EPS decline of 7.02% year-over-year, while revenue is expected to grow by 2.48%; full-year estimates point to an 8.41% drop in earnings but a 1.57% increase in revenue. AT&T's Forward P/E ratio of 13.23 is lower than the industry average, but its PEG ratio of 3.81 is higher, and the stock currently holds a Zacks Rank of #3 (Hold).

Analysis

AT&T (T) shares closed at $27.68, marking a 1.15% increase in the latest trading session, outperforming the S&P 500's 0.53% loss. However, this daily gain contrasts with its monthly performance, where the stock fell 2.63%, underperforming both the Computer and Technology sector's 8.67% gain and the S&P 500's 5.17% rise. The market is anticipating AT&T's earnings release on July 23, 2025, with current projections for an EPS of $0.53, representing a 7.02% year-over-year decline, although revenue is expected to grow by 2.48% to $30.53 billion. For the full year, analysts forecast earnings of $2.07 per share, an 8.41% decrease, while revenue is projected at $124.26 billion, a 1.57% increase. Recent analyst sentiment appears cautious, as evidenced by a 0.27% downward revision in the Zacks Consensus EPS estimate over the past month. Valuation metrics present a mixed view: AT&T's Forward P/E ratio of 13.23 is below its industry average of 21.24, suggesting a potential discount, but its PEG ratio of 3.81 is higher than the industry average of 3.21, indicating potentially lower growth expectations relative to earnings. The stock currently holds a Zacks Rank of #3 (Hold), and its Wireless National industry segment is ranked in the bottom 43% of over 250 industries, with a Zacks Industry Rank of 141.

Key Decisions for Investors

• Investors should closely monitor AT&T's upcoming earnings report on July 23, 2025, particularly for management commentary on the projected 7.02% EPS decline and strategies to improve profitability amidst modest revenue growth forecasts.
• The current Zacks Rank #3 (Hold) and the mixed valuation signals, with a discounted Forward P/E but a higher PEG ratio, suggest a cautious approach; significant positive catalysts or improved earnings outlook would be needed to justify a more bullish stance.
• Considering the stock's recent monthly underperformance against its sector and the broader market, alongside the weak industry ranking, investors might consider if the current valuation adequately compensates for the highlighted risks and slower growth profile.