T - AT&T Shows Red Flags As Stock Nears Recent Peak
2024-06-28 09:42:53 ET
Summary
- Since the start of 2024, AT&T has received an overwhelming positive Buy rating on Wall Street and other Seeking Alpha analysts.
- It is necessary to have a bit of a contrarian view for a mature company like AT&T whose business model is unlikely to change in next few years or even decades.
- Since my last Sell rating at end of 2023, AT&T has shown strong total returns of 16.6% but these returns have easily been overshadowed by S&P500’s 21% total return.
- AT&T remains a value trap for long term investors and the recent improvement in FCF has been possible due to curbing of network investments.
- After the recent rally, investors should question about the future upside potential and the possibility of AT&T beating or even matching the returns of S&P500.
AT&T ( T ) stock has received a very strong bullish outlook from a majority of analysts on Wall Street in the last few months. Even on Seeking Alpha, the sentiment has been very bullish . In the year to date, there has been only one Sell rating for AT&T stock on Seeking Alpha while there have been dozens of bullish ratings. However, it should be noted that AT&T is a very mature company and its business model is not going to give any new surprises. We have seen Meta ( META ) give massive returns since hitting the bottom in 2022 with the help of cost cuts and better use of tools to improve ad sales. AT&T cannot do either and any increase in revenue or decrease in expenses would be very modest....
AT&T Shows Red Flags As Stock Nears Recent Peak