AT&T Stock - A bargain? The communication giant generates about $120 billion in revenue annually. Its stock is currently only 19.08 per share. Cheap doesn't always mean a good investment.
Dallas-based company reported lower revenue, year-over-year, in the last three quarters and lower profit in two of four periods. The company may have turned the corner. Profits rose 9% in the latest quarter and sales also increased. The Relative Strength Rating (RS) for AT&T stock (T) rose to 74 on Thursday. This means that its stock performance in the past year was better than 74% of other stocks.
AT&T Stock Improving but Still Needs Work
It's an improvement, but it is still a few points short of the ideal. In the early stages, the best stocks are those with an RS rating of 80 or more. AT&T may be able to continue showing renewed price strength.
AT&T's stock also has a Composite Rating of 61 out of 99 and an Earnings per Share Rating (EPS) rating of 61. The D- rating indicates that large investors are selling shares more than they are buying.
Positively, AT&T's stock has recently formed a cup with handle base. This pattern can lead to an explosive breakout. On Jan. 25, its stock rose 6.6%, the day after the company reported its highest profit in four quarters.
The stock of AT&T rose by 0.4% to 19.08. This was the fifth time in six sessions that AT&T closed higher. Last week, it crossed over its 200-day line and reached its 50-day mark on Thursday. It's not the best time to buy, as it isn’t in a good buying zone. However, you can wait and see if there is a breakout or consolidation of the stock.
Profits and sales growth rose in the last two quarters
AT&T's EPS has grown in the last two years. During the same time period, revenue growth also increased. The company will report its next quarter's numbers around or on April 26.
AT&T's stock is ranked No. 2 among its peers in the Telecom Services-Integrated industry group. The stock of AT&T is ranked No. 2 among peers in the Telecom Services - Integrated industry group. Charter Communications (CHTR), a digital cable TV provider and provider of internet and calling cards, and IDT (IDT), a vendor of calling cards, are also amongst the highest-rated stocks in this group.