AT&T (NYSE: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 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 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, 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.