Based in Dallas, Texas, AT&T Inc. (T) is the second-largest wireless service provider in North America and a global leader in communications services. With a market cap of $126.27 billion, AT&T connects millions of people and businesses worldwide through its extensive network and innovative solutions. As a major player in the telecom industry, AT&T competes fiercely with Verizon Communications Inc. (VZ), known for its strong wireless and broadband offerings.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and AT&T fits this criterion perfectly, signifying its substantial size, stability, and dominance in the telecommunications industry. Renowned for its expansive network and innovative communication services, T is at the forefront of connectivity solutions, serving millions of customers worldwide and continually advancing the telecom sector.
Shares of T are currently trading 4.2% below their 52-week high of $18.45, which they hit on Jun. 6. Also, T has gained 2.8% over the past three months, underperforming the S&P 500 Index’s ($SPX) 5.2% returns over the same time frame.
In the longer term, T is up 5% on a YTD basis, and the shares have gained 11.7% over the past 52 weeks. In comparison, the S&P 500 has gained 13.9% in 2024 and 24.4% over the past year.
However, T has been trading above its 200-day moving average since late November 2023 and its 50-day moving average since early May.
AT&T's weak stock performance over the past year is due to slowing wireless subscriber growth from market saturation and increased competition. Additionally, investor concerns were heightened by a data breach in which hackers stole and shared sensitive information of millions of AT&T’s current and former customers on the dark web.
However, AT&T's shares rose after the company's earnings release. The company's Q1 quarterly results exceeded expectations on both revenue and earnings.
Rival Verizon has performed almost in line with T over this year, with VZ gaining 5.2% YTD.
Despite the recent underperformance compared to SPX, analysts are moderately optimistic about T's prospects. The stock has a consensus rating of "Moderate Buy" from 20 analysts in coverage. The mean price target of $20.65 reflects a 16.9% premium over current levels.
On the date of publication, Rashmi Kumari 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.
