AT&T poised to end in red after six-session rally

AT&T (NYSE:T [https://seekingalpha.com/symbol/T]) snapped six consecutive sessions of gains on Friday as the stock plunged 2.14% to trade at $28.81 during afternoon trading.

Since August 14, the stock has closed in the green every day until August 21, during which the telecom provider gained over 2.40%. On a year-to-date basis, it has increased by over 30% compared to an 8.3% rise in the broader markets.

As per Seeking Alpha’s quant rating [https://seekingalpha.com/symbol/T/ratings/quant-ratings] and analysts, it is recommended to Hold T. It has a score of 3.46 out of 5. The company has been graded A+ for profitability but holds an F rating for growth.

However, Seeking Alpha and Wall Street analysts share a consensus rating of Buy for AT&T.

Seeking Alpha analyst Daniel Jones [https://seekingalpha.com/article/4816025-at-and-t-one-of-the-best-prospects-in-the-market-hands-down] maintained his Strong Buy rating on the stock, arguing that AT&T is a cash-generating, undervalued business with strong fundamentals and consistent growth.

“Valuation models suggest 12%–19% annualized upside through 2027, making AT&T a compelling, low-risk opportunity for long-term investors,” it said.

Another analyst, Long Player [https://seekingalpha.com/article/4814554-att-t-stock-income-cleans-up], also echoed a similar view on the company, saying that the company is well-placed as a reliable growth and income opportunity, with further stock price recovery expected.

They argued that cell phones and the internet have become modern-day “utilities” that are essential for nearly everyone and will be somewhat recession-resistant. Given its scale and global diversification, the analyst said, AT&T stands out as a compelling growth and income opportunity.

“AT&T remains a "Strong Buy" as a growth and income idea. The recovery potential that began this idea is largely over with. But the promise of growing the business in low to maybe medium single-digit percentages (including an occasional well-thought-out acquisition) makes this a decent lower-risk growth and income idea,” the analyst concluded.

MORE ON AT&T

* AT&T: One Of The Best Prospects In The Market, Hands Down [https://seekingalpha.com/article/4816025-at-and-t-one-of-the-best-prospects-in-the-market-hands-down]
* AT&T: Income Cleans Up [https://seekingalpha.com/article/4814554-att-t-stock-income-cleans-up]
* The 3 Reasons Behind AT&T's Current Appeal [https://seekingalpha.com/article/4812542-the-3-reasons-behind-at-and-ts-current-appeal]
* AT&T looking to sell its Mexican unit for $2B - Bloomberg [https://seekingalpha.com/news/4481484-att-looking-to-sell-its-mexican-unit-for-2b---bloomberg]
* AT&T to have a secondary listing on NYSE Texas [https://seekingalpha.com/news/4475811-att-to-have-a-secondary-listing-on-nyse-texas]