AT&T Inc. (T:NYE) Analysts rate as a Buy rating, see upside in stock

STA Research
by: STA Research

Based on the AT&T Inc. stock forecasts from 15 analysts, the average analyst target price for AT&T stock price is USD 26.46 over the next 12 months. AT&T Inc.’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of AT&T Inc. is Slightly Bearish, which is based on 7 positive signals and 10 negative signals. At the last closing, AT&T Inc.’s stock price was USD 18.92. AT&T Inc.’s stock price has changed by -1.41% over the past week, -1.04% over the past month and -32.45% over the last year.

Worldwide telecommunications, media, and technology services are offered by AT&T Inc. Under the brand names AT&T, Cricket, AT&T PREPAID, and AT&T Fiber, it advertises its communications services and goods. The company’s Latin America division offers television services throughout the region as well as cellular services in Mexico. Prior to 2005, the business was known as SBC Communications Inc. until changing its name to AT&T Inc. The corporate headquarters of AT&T Inc. are in Dallas, Texas.

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and are in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior total returns

The stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

Underpriced compared to earnings

The stock is trading low compared to its peers on a price-to-earnings basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced compared to book value

The stock is trading low compared to its peers on a price-to-book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

 

What we don’t like:

Poor risk-adjusted returns

This company is delivering below median risk-adjusted returns to its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price-to-cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

Disclaimer

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