You don't have to be a genius to find market-beating stocks. Indeed, many are hiding right under our noses.
U.S. telecommunications giant AT&T (T 2.01%) has lulled investors to sleep with its poor performance over most of the past decade. But the stock has enjoyed a face-ripping rally over the past year, surging nearly 60% at the time of this writing.
Uncertainty over the future of the U.S. economy has roiled the stock market, causing many stocks to sink. In this environment, telecom stocks present a potential reprieve.
AT&T Inc.'s T stock could offer "healthy double-digit annualized returns," driven by upside to Street estimates, according to Goldman Sachs.
AT&T (T) reachead $26.96 at the closing of the latest trading day, reflecting a -0.22% change compared to its last close.
AT&T's dividend yield has decreased to 4.1% due to strong share price performance, making Verizon more attractive for income-oriented investors with a 6% yield. AT&T's recent outperformance is driven by 5G and fiber investments, reduced leverage, and multiple expansion, but its valuation is now higher than historical levels. Despite limited revenue and EBITDA growth, AT&T's financial position is improving, allowing for potential capital returns and dividend stability, but not significant growth.
AT&T (T 0.97%) stock offers passive income investors a robust dividend yield and the chance for an increasing stock price.
AT&T is on a comeback trail with a refocused business. Verizon has long had a solid business plan for both the long-term and the short-term. The churn warning should be easy to resolve. Both companies have a recession-resistant business.
AT&T (T) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Despite solid price appreciation, AT&T appears to be treading in the middle of the road and investors could be better off if they trade with caution.
Telecom stocks were in a funk earlier this week, with shares of Verizon (VZ 2.04%), AT&T (T 1.84%), and T-Mobile (TMUS 2.51%) all tumbling on Tuesday, after comments from Verizon chief revenue officer Frank Boulben, given at a Deutsche Bank Media, Internet & Telecom Conference, caused telecommunications sectors to freak out just a little bit.