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AT&T Stock: Should You Buy Now? Here is the earnings, the chart shows


AT&T (t) is one of the most recognizable wireless phone service providers in the United States Telecommunications and media corporation can be seen as a safe haven when the stock market fluctuates and creates a game. Play solid defense. AT&T also maintains a high annual dividend yield of 5.7% in a relatively low interest rate environment. Should investors consider buying AT&T stock?




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Currently, the stock market is in an uptrend, signaling that it’s time to increase your exposure. But recent market action also tells investors that there is still plenty of time to invest with caution and caution. An exposure of even just 20% to 40% feels a bit optimistic at this point.

Investors should look for top stocks in top industry groups that are outperforming the market and near buy points as new portfolio contenders.

AT&T Technical Analysis

AT&T stock had a rough 2022 until the last quarter, when the stock formed the right side of a big cup pattern. Thanks to the strong earnings report on October 20, the stock has started to rally and looks to be bullish. The stock also reclaimed key moving averages like the 50-day and 200-day lines.

Since mid-December, the stock has formed a buy with a handle at 19.62. On January 6, AT&T broke out above that buy point but then cut the buy point. However, the stock is still just 1% below the buy point and is holding above support at the combined 50-day, 200-day and 21-day moving averages.

While AT&T stock maintained Relative Strength Rating of 81, well above the 80 minimum for portfolio candidates, the Composite Rating of 49 tells a different story. The stock’s EPS rating, a factor in the Composite Index, hangs at the low 50s, hampering the stock’s overall strength.

The RS line measures a stock’s performance against the S&P 500. Ideally, the RS line should be at or near new highs when the stock explodes.

Investors should note that AT&T will release Q4 2022 results before the market opens on Wednesday, January 25.

In December, it was announced that AT&T and Black stones (BLK), the world’s largest asset manager, has agreed to form a joint venture to expand its fiber optic network and broadband services beyond the telecommunications company’s existing wireline operations. pine.

The joint venture, called Gigapower, will sell wholesale fiber optic services to internet service providers and other businesses. Gigapower will expand fiber network services beyond AT&T’s traditional 21-state wireline service.

AT&T still plans to expand its own fiber optic network to more than 30 million homes and businesses by the end of 2025. At the end of the 9th quarter, the company had 18.5 million.

AT&T’s earnings

AT&T was expected to report September-quarter revenue of $29.8 billion but beat the view, showing revenue of $30 billion. Revenue was still down 4.1% year over year. Meanwhile, the company also beat earnings expectations with EPS of 68 cents a share. Earnings also showed a slight increase of 3% year over year, which is less than ideal but still good.

The wireless service company added 708,000 postpaid wireless postpaid phone customers compared to an estimate of 552,000 increases. A year earlier, it had added 928,000 wireless postpaid phone subscribers. “Postpaid” subscribers usually have an unlimited monthly data plan.

Wireless services revenue grew 5.4% to $15.3 billion, above estimates of $15.2 billion. Additionally, AT&T added 338,000 fiber broadband subscribers, surpassing AT&T stock analysts’ views of 330,000.

“The beating EPS was driven by higher adjusted EBITDA ($10.7 billion) with T reportedly beating EBITDA (earnings before interest), Goldman Sachs analyst Brett Feldman said in a report. , taxes, depreciation and amortization) across all of its major segments”. “AT&T now expects adjusted EPS from continuing operations for the full year to be $2.50 or more from the previous guidance of $2.42 to $2.46.”

AT&T Stock Should You Buy?

Don’t buy AT&T because the stock is below the buy point at the moment. If the stock regains a proper entry point on high volume, it is technically doable. But investors want to prioritize stocks with at least 25% growth in earnings and revenue in recent quarters. T stock is down a lot from that level right now.

Despite its 5.7% dividend yield, AT&T stock may not be the best competitor for your portfolio right now. Ideally, investors should wait for an improvement in the stock’s fundamentals. Investors can check IBD stock listings and other IBD content to find the best stocks to buy or watch.

Follow Fox on Twitter at @IBD_RFox for more commentary on the best stocks to buy and watch.

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