Core Viewpoint - AT&T's stock performance has lagged behind the broader market, with upcoming earnings expected to show a decline in earnings per share while revenue is projected to increase slightly [1][2][3]. Company Performance - AT&T's stock closed at $28.35, down 1.53% from the previous session, underperforming the S&P 500's loss of 0.29% [1]. - Over the past month, AT&T shares have appreciated by 0.81%, significantly lower than the Computer and Technology sector's gain of 8.98% and the S&P 500's gain of 3.08% [1]. Upcoming Earnings - AT&T is set to release its earnings on October 22, 2025, with an expected earnings per share of $0.54, reflecting a year-over-year decline of 10% [2]. - Revenue for the upcoming quarter is projected to be $30.96 billion, indicating a 2.47% increase compared to the same quarter last year [2]. Annual Forecast - The Zacks Consensus Estimates forecast annual earnings of $2.05 per share and revenue of $124.99 billion, representing a decline of 9.29% in earnings and a growth of 2.17% in revenue compared to the previous year [3]. Analyst Estimates - Recent changes to analyst estimates for AT&T suggest a correlation with short-term business trends, with positive revisions indicating optimism about the company's outlook [3][4]. Zacks Rank and Valuation - AT&T currently holds a Zacks Rank of 3 (Hold), with the Zacks Rank system showing a strong historical performance for 1 ranked stocks [5]. - The company has a Forward P/E ratio of 14.06, which is lower than the industry average of 21.44, indicating a potential valuation discount [6]. Industry Context - The Wireless National industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 182, placing it in the bottom 27% of over 250 industries [7].

Core Insights - AT&T is testing a new AI tool called AT&T Digital Receptionist aimed at blocking spam and unwanted calls, utilizing large language models for processing speech and generating responses [1][3] - The tool allows users to customize call screening criteria, ensuring important contacts can reach them without barriers, while AT&T currently blocks over 2 billion robocalls monthly [2][7] - Following successful testing, the Digital Receptionist will be integrated into AT&T's existing spam filter, ActiveArmor, with plans for future enhancements to improve user convenience [3] Competitive Landscape - Verizon is introducing AI-powered features like the Verizon Customer Champion, which utilizes Google Cloud's AI for personalized customer service and offers 24/7 live support [4] - T-Mobile is collaborating with OpenAI to create an intent-driven AI platform to enhance customer service, alongside features like scam shield and scam ID to combat fraudulent calls [5] Financial Performance - AT&T's stock has increased by 38.3% over the past year, outperforming the Wireless National industry's growth of 16.2% [6] - The company's shares are currently trading at a price/earnings ratio of 13.47, slightly lower than the industry's 13.53 [8] - Earnings estimates for AT&T for 2025 and 2026 have seen upward revisions in the past 60 days [10]

Company Performance - Verizon Communications closed at $44.21, marking a +1.07% change from the prior day, outperforming the S&P 500's daily loss of 0.1% [1] - The upcoming earnings per share (EPS) is projected at $1.2, indicating a 0.84% increase year-over-year, with revenue expected to be $34.05 billion, reflecting a 2.15% increase compared to the same quarter last year [2] - Full-year Zacks Consensus Estimates predict earnings of $4.7 per share and revenue of $138.17 billion, representing year-over-year changes of +2.4% and +2.51% respectively [3] Analyst Forecasts - Recent revisions to analyst forecasts for Verizon are crucial as they indicate changing business trends, with upward revisions suggesting analysts' optimism about the company's profitability [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Verizon at 3 (Hold), indicating a neutral outlook [6] Valuation Metrics - Verizon is trading with a Forward P/E ratio of 9.3, which is a discount compared to the industry average Forward P/E of 21.29 [7] - The PEG ratio for Verizon is 3.37, aligning with the industry average, which also reflects the company's expected earnings growth trajectory [7] Industry Context - The Wireless National industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 171, placing it in the bottom 31% of over 250 industries [8]

Core Insights - Verizon Communications Inc. has partnered with the Tampa Police Department to launch a connected officer initiative, equipping patrolling officers with advanced smartphones for law enforcement applications [1][8] Group 1: Partnership and Initiative - The Tampa Police Department is introducing a connected officer initiative with Verizon Frontline, aiming to enhance communication for patrolling officers [1][8] - Verizon will deploy approximately 950 5G Ultra-Wideband-enabled smartphones to improve the police department's communication infrastructure [2][8] Group 2: Network Upgrades - Verizon is conducting significant network upgrades in Florida, focusing on enhancing the fiber network to improve resilience against harsh weather and boost disaster preparedness [2][8] Group 3: Market Context - The global public safety and security market is projected to grow from $516.68 billion in 2024 to $1.1 trillion by 2030, with a compound annual growth rate of 14.3% [4] - The U.S. public safety and security market holds the largest share, presenting an opportunity for Verizon to capitalize on this trend [4] Group 4: Competitive Landscape - Verizon faces competition from T-Mobile and AT&T in the public safety connectivity sector, with T-Mobile expanding its T-Priority 5G coverage and AT&T enhancing its FirstNet infrastructure [5][6] - T-Mobile's T-Priority product is designed for first responders, while AT&T's FirstNet is a dedicated network for public safety [5][6] Group 5: Financial Performance - Verizon's stock has decreased by 0.7% over the past year, contrasting with the Wireless National industry's growth of 14.9% [7] - The company's price/earnings ratio is currently at 9.07, down from the industry average of 13.6 [10]

Core Insights - Verizon Communications Inc. (VZ) has gained 9.5% year-to-date, underperforming the Wireless National industry's growth of 15.9% and trailing behind AT&T's 27.7% and T-Mobile's 15.9% returns [1][2][8] Customer-Focused Strategies - Verizon is implementing a mix-and-match pricing strategy for wireless and home broadband plans, leading to solid customer additions. The new Verizon Family Plus plan offers features for digital wellness and safety at $10/month [3] - The company launched Tracfone Freedom, an unlimited talk, text, and data plan priced at $45/month, which includes 5G access and discounts for military and veterans [4] Infrastructure Expansion - Verizon is aggressively expanding its fiber optics networks to support 4G LTE and 5G standards. The acquisition of Frontier Communications has significantly enhanced its fiber infrastructure [5] - The company is making substantial capital expenditures to expand 5G mmWave and densify its 4G LTE network to meet increasing traffic demands [5] Competitive Landscape - Verizon faces intense competition from AT&T and T-Mobile, which have introduced attractive plans targeting specific demographics, making customer acquisition challenging in a saturated market [6][9] - AT&T's new plans for customers aged 55 and above and T-Mobile's competitive pricing further intensify the competition [6][9] Financial Performance and Estimates - Earnings estimates for Verizon have seen slight increases, with 2025 estimates rising by 0.21% to $4.7 and 2026 estimates improving by 0.41% to $4.94 [11] - From a valuation perspective, Verizon's shares trade at a price/earnings ratio of 9.01, which is lower than the industry average of 13.7, indicating a relatively cheaper valuation [12] Growth Drivers and Challenges - Verizon's customer-first strategy and heavy spending on promotions are aimed at expanding its customer base, although this may pressure profit margins [10] - The company is also facing macroeconomic challenges that are impacting net sales in its Business segment [10][16] - Despite these challenges, advancements in AI and the growing adoption of IoT devices are driving demand for high-speed connectivity, which bodes well for sustainable growth [15]

Core Insights - AT&T, Inc. has outperformed the Wireless National industry and the S&P 500, gaining 28.6% over the past year compared to the industry's 15.9% growth [1][8] - The company has also surpassed competitors like Verizon and T-Mobile, which gained 10.5% and 16.8% respectively during the same period [2][8] Fiber Expansion and Strategic Initiatives - AT&T is aggressively expanding its fiber network, with a joint venture, Gigapower, aiming to reach 1.5 million fiber locations across six states [3][4] - The company’s fiber broadband network has reached 30 million locations and is set to acquire Lumen's fiber business, which will enhance its footprint across 11 states [5] - By 2030, AT&T expects to reach approximately 50 million customer locations with its fiber network, and over 60 million when including Lumen's assets [5] 5G Connectivity and Spectrum Acquisition - Despite a mature mobile market, the demand for 5G connectivity driven by AI and IoT is increasing [6] - AT&T plans to acquire wireless spectrum licenses from EchoStar for $23 billion, which will enhance its 5G offerings [6][8] Financial Position and Challenges - As of June 30, 2025, AT&T had $10.5 billion in cash and cash equivalents, with long-term debt increasing to $123.06 billion [10] - The company’s current ratio is 0.81 and cash ratio is 0.22, indicating potential challenges in meeting short-term obligations [10] - Despite improvements in short-term liquidity, high debt obligations remain a significant obstacle [15] Earnings Estimates and Valuation - Earnings estimates for AT&T for 2025 and 2026 have seen upward revisions over the past 60 days [11] - The company is trading at a price/earnings ratio of 13.38, which is lower than the industry average of 13.69 but above its historical mean of 12.31 [12]

Group 1 - The stock of ATN International, Inc. (ATNI) is experiencing significant attention due to high implied volatility in the options market, particularly the Sept. 19, 2025 $5 Put option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in ATN International's stock price, potentially due to an upcoming event [2] - ATN International holds a Zacks Rank 3 (Hold) in the Wireless National industry, which is in the top 44% of the Zacks Industry Rank, with mixed earnings estimate revisions from analysts over the last 60 days [3] Group 2 - The high implied volatility surrounding ATN International may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capitalize on time decay [4]

Core Insights - Verizon Communications Inc. is experiencing challenges in its Business Segment, with Q2 revenues of $7.27 billion, a slight decline from $7.3 billion year-over-year, primarily due to weaknesses in the public sector and wholesale business [1][8] - The company anticipates continued demand softness in the public sector, projecting a 1.8% revenue decline in enterprise and public sector business for 2025 [3][8] - High churn rates in wireless retail postpaid services are raising concerns, with a churn rate of 1.61% reported in Q2 [2][8] Business Segment Performance - Verizon's Business Segment generated $7.27 billion in Q2, down from $7.3 billion a year ago, with growth in business markets offset by declines in public sector and wholesale operations [1][8] - The company added 42,000 net customers in Q2, a significant drop from 135,000 net adds in the same quarter last year [2] - The expected revenue from enterprise and public sector business for 2025 is $13.95 billion, down from $14.2 billion in the prior year [3] Competitive Landscape - Verizon faces stiff competition from T-Mobile and AT&T, with T-Mobile reporting 830,000 postpaid phone net customer additions and a churn rate of 0.9% in Q2 [4] - AT&T's Business Wireline revenues fell 9.3% year-over-year to $4.31 billion, reflecting a shift in customer demand towards advanced IP-based services [5] Financial Metrics - Verizon's stock has gained 6.8% over the past year, compared to a 21.4% growth in the Wireless National industry [6] - The company's shares currently trade at a price/earnings ratio of 9.11, lower than the industry average of 13.63 but slightly above its own historical mean of 9.01 [9] - Earnings estimates for 2025 and 2026 have improved to $4.69 and $4.94, respectively, over the past 60 days [10]

Industry Overview - The Zacks Wireless National industry is experiencing healthy demand trends due to accelerated 5G rollout and increased fiber densification, which aids in bridging the digital divide with seamless connectivity [1] - The industry primarily includes firms providing a wide range of communication services, including wireless, wireline, broadband, and cloud-based services to both retail consumers and businesses [3] Future Trends - The 5G ecosystem is gaining traction as companies deploy advanced 4G LTE technologies and expand fiber optic networks to support both 4G and 5G standards, enhancing coverage and speed for customers [4] - Industry participants are shifting towards a software-centric network model to improve operational efficiencies and meet increasing business demands [6] Competitive Landscape - Increased infrastructure spending has led to short-term margin erosion due to aggressive promotional expenses and low-priced service plans aimed at customer retention [5] - The industry faces challenges from over-the-top service providers and price-sensitive competition, which is expected to intensify [5] Performance Metrics - The Zacks Wireless National industry has outperformed the S&P 500 and the broader Zacks Computer and Technology sector over the past year, with a growth of 22.4% compared to 15.9% for the S&P 500 and 21.4% for the sector [9] - The industry is currently trading at a trailing 12-month EV/EBITDA of 9.5X, significantly lower than the S&P 500's 17.77X and the sector's 17.81X [12] Key Companies - Array Digital Infrastructure, Inc. is benefiting from solid user engagement in its fixed wireless business and has delivered an earnings surprise of 40% on average over the trailing four quarters, carrying a Zacks Rank 2 (Buy) [15] - Liberty Latin America Ltd. is positioned to leverage its end-to-end communications platform and upgraded infrastructure, carrying a Zacks Rank 3 (Hold) [18] - Cambium Networks Corporation is well-positioned with a broad portfolio of fixed wireless broadband solutions and has a long-term earnings growth expectation of 20%, also carrying a Zacks Rank 3 [20]

Core Viewpoint - AT&T has been gaining attention in the stock market, with a recent performance of +5.4% over the past month, outperforming the S&P 500 composite's +3.1% and the Zacks Wireless National industry's +5.7% [1] Earnings Estimate Revisions - The consensus earnings estimate for AT&T for the current quarter is $0.54 per share, reflecting a -10% change year-over-year, with the estimate remaining unchanged over the last 30 days [4] - For the current fiscal year, the consensus earnings estimate is $2.04, indicating a -9.7% year-over-year change, with a slight increase of +0.8% over the last month [4] - The next fiscal year's consensus earnings estimate is $2.24, showing a +9.8% change from the previous year, with a minor decrease of -0.1% over the past month [5] Revenue Growth Forecast - The consensus sales estimate for AT&T for the current quarter is $30.93 billion, indicating a +2.4% year-over-year change [10] - For the current fiscal year, the sales estimate is $124.87 billion, reflecting a +2.1% change, while the next fiscal year's estimate is $126.55 billion, indicating a +1.4% change [10] Last Reported Results and Surprise History - In the last reported quarter, AT&T's revenues were $30.85 billion, representing a +3.5% year-over-year change, with an EPS of $0.54 compared to $0.57 a year ago [11] - The reported revenues exceeded the Zacks Consensus Estimate of $30.53 billion by +1.02%, and the EPS surprise was +5.88% [11] - Over the last four quarters, AT&T surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [12] Valuation - AT&T is graded B on the Zacks Value Style Score, indicating it is trading at a discount to its peers [16]