Dallas, Texas-based AT&T Inc. (T) is one of the largest wireless service providers and leading communications service carriers in North America. With a market cap of $175.1 billion, AT&T operates through Communications and Latin America segments and serves over 240 million people as their carrier.
The telecom giant has substantially outperformed the broader market over the past year. AT&T stock has soared 40.5% over the past 52 weeks and 6.4% on a YTD basis outpacing the S&P 500 Index’s ($SPX) 22.6% surge over the past year and 2.7% gains in 2025.
Narrowing the focus, AT&T has also outperformed the SPDR S&P Telecom ETF’s (XTL) 1.6% decline on a YTD basis and 32.1% returns over the past year.
AT&T had a great end to the year. Its stock prices soared 6.3% after the release of its impressive Q4 results on Jan 27. The company has observed solid momentum, gaining and retaining profitable 5G and fiber subscribers. During the quarter AT&T added a net 482,000 postpaid phone with an expected industry-leading churn of 85 basis points. Furthermore, it has observed 20 consecutive quarters of net add of over 200,000 in AT&T Fiber and added 307,000 subscribers in Q4.
This led to a substantial 3.3% year-over-year growth in operating revenues to $23.1 billion which surpassed the Street’s expectations. Furthermore, its postpaid phone ARPU observed a marginal growth compared to the year-ago quarter to $56.72. Meanwhile, its EBITDA increased 6.1% year-over-year to $8.9 billion and its adjusted EPS of $0.54 surpassed the consensus estimates by 12.5%, bolstering investor confidence.
However, in fiscal 2025, AT&T’s adjusted EPS is expected to dip 10.6% year-over-year to $2.02. Its earnings surprise history is mixed. While the company has surpassed the consensus estimates thrice over the past four quarters, it has missed the projections on one other occasion.
AT&T has a consensus “Moderate Buy” rating overall. Out of the 27 analysts covering the stock 15 recommend “Strong Buy,” three advise “Moderate Buy,” eight advise “Hold,” and one advocates a “Strong Sell” rating.
This configuration is slightly more bullish than a month ago when 14 analysts recommended “Strong Buy” ratings.
On Jan. 28, Scotiabank analyst Maher Yaghi reiterated a “Buy” rating while setting the price target to $26.
While AT&T’s mean price target of $26.48 represents a 9.2% premium to current price levels. Its street-high target of $32.50 suggests a staggering 34.1% upside potential from current price levels.
