VZ - AT&T: Let Your Profit Run

2024-07-08 13:27:13 ET

Summary

• T stock may have reached an inflection point with improving cash flow and strengthening market position.
• The current competitive landscape shows stabilization and improvement in market share for T with its cost-effective plans and reliable network.
• Despite some risks, T stock remains a deep-value play with a compressed valuation, high dividend yield, and improving fundamentals.

T stock may have reached an inflection point

I have been bullish on AT&T ( T ) in the past year or so (see the next chart below). The key reason for my bullish view is its turnaround plan. For example, I last wrote on it about three months ago. That article, entitled Sensing An Inflection Point Approaching , argues for a bullish thesis based on the following considerations:

I see good catalysts for it to reach the 2024 FCF promise of $17 billion-$18 billion. Reaching this goal could allow it to be viewed as a successful turnaround story, resume its dividend growth, and drastically change market sentiment.

For further details see: