AT&T Inc. (T) Buy or Sell Stock Guide

Last updated: Dec 11, '17

The analysis below may be helpful to you if you have any of the following questions about T stock:

  • Is T a buy or a sell?
  • Should I sell or hold T stock today?
  • Is T a good buy / a good investment?
  • What are T analyst opinions, recommendations, ratings?

Here are T stock buy reasons/signals:

1. AT&T and Verizon dominate the U.S. wireless industry. The wireless business generates strong profits and enables the firm to steadily invest in its networks, thereby maintaining its competitive scale-based advantage over smaller rivals.

2. AT&T’s solid positioning across key distribution platforms enables greater scale and integration to better meet customer needs as access pipes converge.

3. The DirecTV deal enhances video scale (now the number-one pay-TV provider) and drives significant cost synergies.

4. T forward dividend yield is 5.53%, higher than the industry (0.39%) and sector (0.27%) forward dividend yields.

5. T forward P/E ratio is 12.46, and it’s low compared to its industry peers’ P/E ratios.

6. T average analyst rating is Buy.

Here are T stock sell reasons/signals:

1. Intensifying competition in a maturing U.S. wireless market along with continued headwinds in the wireline segments challenge revenue growth and eventually pressure margins.

2. With DirectTV, AT&T bought an aging satellite TV business that will steadily lose customers to the cable alternatives and cheaper over-the-top offerings. DirecTV Now will mitigate, but not entirely offset, these losses.

3. The Time Warner deal will add more than $40 billion of debt to the balance sheet and about $2 billion to AT&T’s annual dividend obligation.

4. T quarterly revenue growth was -1.70%, lower than the industry and sector average revenue growth (6.78% and 0.48%, respectively).

5. T profitability is declining. The YoY profit margin change was -1.17pp.

6. T short interest (days to cover the shorts) ratio is 7.45. The stock garners more short interest than the average industry, sector or S&P 500 stock.

What are your thoughts on T?

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