Verizon Communications Inc. VZ and AT&T, Inc. T are prominent players in the telecommunications industry. As one of the leading wireless carriers in the United States, Verizon delivers communication services to a vast customer base across the public sector, small, medium businesses and global enterprises as well.
AT&T's earnings are finally aligning with its streamlined business after years of divestitures. The recent Lumen acquisition is a focused, synergistic move. Ongoing results from core businesses now dominate.
Zacks.com users have recently been watching AT&T (T) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
AT&T's renewed focus on core telecom operations drives stable revenue, strong free cash flow, and positions it as a premium, undervalued investment opportunity. Dividend yield is solid at 3.9%, with a low payout ratio and 40 years of consistent payments, outpacing main competitor Verizon in growth potential. Aggressive debt reduction—down 31% since 2021—strengthens AT&T's balance sheet, with net debt and leverage ratios improving versus peers.
AT&T's massive debt load, hugely negative tangible book value, and stagnant business growth rate make the stock unattractive for long-term investors. After a multi-year price rebound, AT&T's dividend yield is now historically low and barely exceeds risk-free Treasury yields, slashing its appeal for income investors. The current valuation is expensive relative to the past decade of trading, with technical momentum fading since April.
AT&T Inc. (NYSE:T ) KeyBanc Capital Markets Technology Leadership Forum August 11, 2025 11:00 AM ET Company Participants Jeremy Legg - Chief Technology Officer of AT&T Services, Inc. Conference Call Participants Brandon Lee Nispel - KeyBanc Capital Markets Inc., Research Division Brandon Lee Nispel Welcome to day one of the KeyBanc Technology Leadership Forum. Thanks, everybody, for being here.
CEO John Stankey is reshaping AT&T to be leaner and more nimble like Verizon and T-Mobile. The 140-year-old telecom company's transition shows signs of paying off, with its stock outpacing rivals so far this year.
With 243K fiber adds in the second quarter and a 46.8% surge, T is charging ahead, yet market saturation and stiff competition could test its momentum.
I recommend a Buy rating due to strong revenue growth, margin expansion, and robust cash flow generation. The company benefits from secular tailwinds in its industry, supporting long-term demand and pricing power. Management's disciplined capital allocation and shareholder-friendly policies enhance the investment case.
AT&T NYSE: T, Verizon Communications NYSE: VZ, and T-Mobile US NASDAQ: TMUS dominate the telecommunications industry in the United States. Together, investors know them as the “Big Three” telecom stocks.
Recently, Zacks.com users have been paying close attention to AT&T (T). This makes it worthwhile to examine what the stock has in store.
AT&T Inc. (NYSE: T) was founded in 1885 and was the dominant telephone company until 1984.