Why should you invest in AT&T?
Deciding on AT&T stock
AT&T has a conensus rating of Moderate Buy which is based on 10 buy ratings, 5 hold ratings and 0 sell ratings. What is AT&T's price target? The average price target for AT&T is $27.25. This is based on 15 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
AT&T is facing challenges and may not grow briskly, but investors seeking income might want to consider it: The stock recently sported a hefty dividend yield of 6.6%. Burdened with long-term debt, AT&T cut its dividend nearly in half in 2022 and has kept it steady since then.
This year looks to be the one to invest in AT&T (NYSE: T) and Verizon Communications (NYSE: VZ). Both of these giants of the telecom industry experienced share-price gains going into 2024.
In its most recent quarter, AT&T delivered, generating solid revenue growth, robust free cash flow, and notable subscriber gains. Perhaps most importantly, the company achieved its goal of $6 billion in run-rate cost savings and is making progress toward an incremental $2 billion cost savings by 2026.
AT&T Stock Forecast
The 16 analysts with 12-month price forecasts for AT&T stock have an average target of 20.22, with a low estimate of 14 and a high estimate of 29. The average target predicts an increase of 14.89% from the current stock price of 17.60.
AT&T is forecast to grow earnings and revenue by 3.5% and 1.2% per annum respectively. EPS is expected to grow by 4.4% per annum. Return on equity is forecast to be 13.2% in 3 years.
Consider AT&T stock
Due to improving business conditions, the low valuation makes AT&T a compelling buy. Thanks to a rising market share and the AI-driven need for AT&T's networks, the company and its stock should move higher in the long term.
In the next one to three years, the company faces long-term debt obligations and interest payments of approximately $24.8 billion. Given its average annual operating cash flow of $38.8 billion over the past decade, I believe AT&T is well positioned to meet its debt and interest obligations.
AT&T annual gross profit for 2023 was $72.305B, a 3.45% increase from 2022. AT&T annual gross profit for 2022 was $69.893B, a 5.08% decline from 2021. AT&T annual gross profit for 2021 was $73.631B, a 4.87% decline from 2020.
Is AT&T stock a buy or a hold?
Is AT&T stock a Buy, Sell or Hold? AT&T stock has received a consensus rating of buy. The average rating score is Baa2 and is based on 29 buy ratings, 26 hold ratings, and 0 sell ratings.
| Stock | Expected Change in Stock Price* |
|---|---|
| Tesla Inc. (TSLA) | 61% |
| Mastercard Inc. (MA) | 14.2% |
| Salesforce Inc. (CRM) | 7.2% |
| Advanced Micro Devices Inc. (AMD) | 11.3% |
- Step 1: Find a good online broker. ...
- Step 2: Open your brokerage account. ...
- Step 3: Deposit money to your account. ...
- Step 4: Buy the AT&T share. ...
- Step 5: Review your AT&T position regularly.
AT&T continued gaining subscribers for its core cellphone business in the last three months of 2023, lifting revenue and spurring the company to guide for another year of free cash flow growth.
AT&T Inc's market capitalization is 125.8B USD. T stock price is 17.6 USD. T stock price (17.6 USD) is 42% less than its Intrinsic Value (30.48 USD).
AT&T stock price stood at $17.60
According to the latest long-term forecast, AT&T price will hit $20 by the middle of 2025 and then $25 by the end of 2026. AT&T will rise to $30 within the year of 2027, $35 in 2029, $40 in 2030, $45 in 2033 and $50 in 2035.
| Name | Equities | % |
|---|---|---|
| Vanguard Fiduciary Trust Co. 8.702 % | 622,406,459 | 8.702 % |
| BlackRock Advisors LLC 5.834 % | 417,283,850 | 5.834 % |
| STATE STREET CORPORATION 4.276 % | 305,826,819 | 4.276 % |
| Newport Trust Co. 2.786 % | 199,272,812 | 2.786 % |
Examples of top dividend stocks renowned for their sustained dividend growth include Johnson & Johnson (NYSE:JNJ), The Procter & Gamble Company (NYSE:PG), AbbVie Inc (NYSE:ABBV), Colgate-Palmolive Company (NYSE:CL), and PepsiCo, Inc. (NASDAQ:PEP).
Verizon stock has received a consensus rating of hold. The average rating score is Baa1 and is based on 25 buy ratings, 30 hold ratings, and 2 sell ratings.
WASHINGTON, February 26, 2024 – AT&T is looking to abandon its obligation to provide landline telephone service across large swaths of California, which would leave more than 580,000 rural subscribers with more limited options for phone services.
What does AT&T do well?
AT&T has the most reliable 5G network. It also serves nearly all of the Fortune 1000 — with high-speed, highly secure connectivity and smart solutions. 2023 revenues of $118.0 billion.
AT&T has invested about $145 billion in its wireless and wireline networks over the past five years. AT&T also reiterated that based on “fiber returns better than initial assumptions,” it could potentially pass an incremental 10 million to 15 million consumer and business fiber locations within its existing footprint.
Summary. AT&T Inc. faces challenges in delivering stable shareholder value due to a poor historical track record, lower 5G penetration, weak positioning in the 5G market, and a heavily debt-saturated balance sheet.
One stock that many investors consider for its high dividend yield is AT&T (NYSE: T). The telecom giant pays a 6.68% dividend yield, trades at a low valuation, and is expected to improve its profitability and cash flow as it invests less in capital expenditures.
AT&T is executing well on its sustainable, long-term growth strategy. The company remains on track to meet all of its financial guidance. The company continues to see healthy demand for world-class connectivity through 5G and fiber.
