Based in Dallas, Texas, AT&T Inc. (T), with a market cap of $146.5 billion, is a leading telecommunications and technology services provider. The company operates across various segments, offering wireless, broadband, and entertainment services to customers worldwide.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and AT&T fits this criterion perfectly. AT&T is renowned for its leadership in connectivity, offering the largest 5G network in North America covering over 210 million people, the fastest fiber internet reaching 27.8 million locations. Also, the company is committed to investing $5 billion by 2030 to close the digital divide and connect 25 million people to high-speed internet.
Even though the telecom giant pulled back marginally from its 52-week high of $20.45, recently achieved on Sep. 3, shares of AT&T are up almost 13.4% over the past three months, easily dwarfing the broader Nasdaq Composite's ($NASX) 1.8% gain over the same time frame.
Over the longer term, AT&T has soared 21.8% on a YTD basis, outpacing NASX's 14.2% gains. Moreover, shares of AT&T have surged 39.5% over the past 52 weeks, compared to NASX's 22.1% returns over the same time frame.
To confirm the bullish price trend, AT&T has been trading above its 200-day moving average since December last year and has remained above its 50-day moving average since May.
AT&T has outperformed due to significant gains in its wireless and fiber businesses, driven by strong subscriber growth. This success is fueled by strategic investments in expanding its 5G network and fiber coverage, which have strengthened its competitive position.
Moreover, despite lower-than-expected Q2 revenue and earnings, the stock shot up more than 5% on Jul. 24 due to stronger-than-expected subscriber growth, with 419 thousand new wireless subscribers added. The company's free cash flow also increased by 9.5% to $4.6 billion, enhancing investor confidence.
To emphasize AT&T’s outperformance, the stock’s rival Verizon Communications Inc. (VZ) has lagged behind AT&T, with a 13.9% rally on a YTD basis and a 23.2% surge over the past 52 weeks.
Despite the stock’s outperformance, analysts remain cautiously optimistic about its prospects. Among the 24 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $21.56.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
