On December 25, 2024, the stock market saw some interesting trends as several companies captured investors' attention. Among them, AT&T (T) has emerged prominently on Zacks.com's list of most searched stocks, bringing to light some pivotal factors influencing its performance.
Recently, shares of AT&T have faced challenges, returning -0.6% over the past month, which starkly contrasts the Zacks S&P 500 composite's gain of +1.3%. The wider Zacks Wireless National industry has not fared muchbetter, dipping 5.4% during the same timeframe. With such statistics, investors are naturally curious about AT&T’s prospects moving forward.
A core aspect of determining stock value lies not only on immediate trends but also on anticipated earnings. According to Zacks, the evaluation of earnings estimate revisions is key. “When earnings estimates for a company go up, the fair value for its stock goes up as well,” states Zacks analysis, emphasizing the importance of these forecasts. Currently, AT&T is expected to post earnings of $0.48 per share for the current quarter, reflecting a -11.1% change from the previous year. Over the last 30 days, the Zacks Consensus Estimate has been adjusted downwards by -3.1%.
For the current fiscal year, AT&T's consensus earnings estimate stands at $2.20, marking an -8.7% year-over-year change, with another slight downward revision of -0.6% noted over the past month. When it looks toward next year, estimates suggest earnings of $2.14 per share, indicating another -2.8% change from last year’s predictions. A -7.3% revision has occurred recently as well, adding to the stock's uncertainty.
The performance of stocks often correlates with the adjustments of these earnings estimates. “The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, results in a Zacks Rank #3 (Hold) for AT&T,” reflecting the mixed sentiment among analysts.
Meanwhile, other companies are generating buzz among investors as well. TipRanks has reported some of the most strongly rated stocks trending recently, providing insights on analyst ratings and their potential for gains. Vertex Pharmaceuticals (VRTX), particularly noteworthy as it specializes in therapies for serious diseases, including cystic fibrosis, received six ratings recently, earning it a consensus of Moderate Buy. Analysts project the stock’s price target could rise to $515.11, indicating potential growth of 26.2%.
Similarly, Winnebago Industries (WGO), which manufactures recreational vehicles, including motorhomes and boats, has garnered notable attention, receiving five ratings over the past three days. Analysts offer a Moderate Buy consensus for WGO with its average price target set at $67.67, implying impressive upside potential of 41.3%.
Tech giant Alphabet (GOOGL) is also on the list, having attracted four ratings recently. With its reputation bolstered by its core product, Google, the analyst consensus for GOOGL stands at Strong Buy, and its average price target of $212.38 suggests an 8.3% upside.
Investors can utilize tracking tools such as TipRanks’ Smart Portfolio feature to get insights not only on individual stocks but across their whole investment portfolio. It now even offers AI-generated explanations to gauge each holding’s stock movement, thereby enhancing the user experience for data-driven investment decisions.
Considering the variations and the rapidly changing market dynamics, keeping abreast of the most trending stocks now could prove beneficial as the year draws to its close. Meanwhile, following the performance and forecasts surrounding companies like AT&T, Vertex Pharmaceuticals, Winnebago Industries, and Alphabet can help investors navigate potential opportunities and risks effectively.
