2024-03-29 11:00:00 ET
Summary
- AT&T investors who bought T's long-term lows in July 2023 have done remarkably well.
- AT&T should see improved performances this year, lifting buying sentiments.
- AT&T's ability to control costs while building its fiber infrastructure has demonstrated its execution prowess.
- With a dividend yield exceeding 6%, it should attract more income investors to return as the Fed cuts rates this year.
- I explain why T's rally looks set to carry on, bolstered by its dirt-cheap valuation.
AT&T Inc. ( T ) investors have done incredibly well since T bottomed out in July 2023 (remember the days when fears of lead-sheathed cables dominated?). Panic sellers bailed out in droves, unduly worried about potential multi-billion liabilities. However, dip-buyers returned with a vengeance, picking up the pieces from these sellers at T's long-term lows. T's buying momentum has improved significantly since then, even though I decided to lower my rating to a Hold in mid-January 2024. I cautioned investors that T needed a well-deserved break after its surge. T's relative underperformance to the S&P 500 ( SPX ) ( SPY ) suggests buying momentum has waned. Despite that, T looks ready to power ahead again, potentially achieving a decisive breakout....
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For further details see:
AT&T: Still Dirt Cheap While Boasting A High Dividend Yield (Rating Upgrade)