Group 1 - The new tax law, referred to as the "OBBB," is praised by companies for enhancing consumer capacity and releasing funds, allowing immediate expensing of domestic capital costs for various enterprises [1] - 19% of companies in the Russell 3000 index mentioned the new tax regulation during their earnings calls, indicating a significant awareness and potential impact on corporate strategies [1] - Companies can now fully deduct expenses related to R&D, new equipment, and property in one go, which is expected to save funds and accelerate equipment procurement and facility upgrades [1] Group 2 - Johnson & Johnson views the tax law favorably, linking it to their previously announced $55 billion investment plan in the U.S. and expressing optimism about job creation and innovation [2] - AT&T anticipates saving up to $8 billion in cash taxes from 2025 to 2027, planning to allocate approximately $3.5 billion to expand its fiber network [2] - PACCAR and General Dynamics report increased business inquiries due to released funds, with PACCAR projecting a 4% to 6% growth in parts sales this quarter [3] Group 3 - Companies like Booz Allen and United Rentals have raised their free cash flow expectations by $200 million and $400 million, respectively, due to tax incentives [3] - Northrop Grumman expects to receive $200 million to $250 million in cash tax benefits this year, while Roper Technologies anticipates a tax reduction of about $150 million and $120 million in benefits next year [3] - Some companies, such as Ford and Sherwin-Williams, are still assessing the financial impact of the new tax law, while Boeing does not foresee significant effects this year [3] Group 4 - The tax law may encourage companies to expand their operations in the U.S., but it could also lead to increased costs, complicating the overall financial landscape [4] - Ongoing tariff negotiations add complexity to the situation, suggesting that the financial benefits of the tax law may not be straightforward for all companies [4]

Core Insights - AT&T, Inc. has achieved a stock gain of 46.8% over the past year, outperforming the Wireless National industry growth of 24% and the S&P 500's growth of 20.9% [1][8] - The company has outperformed competitors such as Verizon and T-Mobile, which gained 7.6% and 27.3% respectively during the same period [2][8] Key Growth Drivers - The Communication segment is experiencing strong subscriber momentum and growth in postpaid average revenue per user, with net fiber additions of 243,000 and 203,000 subscribers added in the second quarter [3] - AT&T's fiber broadband network has expanded to 30 million locations, with a goal of reaching 60 million by 2030, supported by the acquisition of Lumen's fiber connectivity business [3] - The One Big Beautiful Bill Act is expected to catalyze AT&T's fiber densification process, projecting $12.3 billion in revenues from the broadband business by 2025, indicating a 9.8% year-over-year growth [3] Portfolio Optimization - The company is divesting non-core assets, including a 70% stake in DIRECTV, to focus on its primary growth engines: 5G and fiber broadband services [4][8] Technological Advancements - AT&T has deployed a third-party RAN automation application in its live network, enhancing optimization and fostering an open multi-vendor ecosystem [5] - The collaboration with AST SpaceMobile has led to successful voice and text communications using AT&T's network, expanding coverage in remote areas [6][9] Competitive Landscape - AT&T faces significant competition from Comcast, Verizon, and T-Mobile, with T-Mobile adding 495,000 postpaid phone net customers in the second quarter [10][11] - Verizon's acquisition of Frontier Communications is expected to strengthen its fiber Internet business, posing challenges to AT&T's growth initiatives [11] Revenue Challenges - The Business Wireline segment is experiencing a decline in net sales due to lower demand for legacy services, with projected revenues of $17.91 billion by 2025, indicating a 4.8% year-over-year decline [12] Estimate Revisions - Earnings estimates for 2025 have increased by 0.49% to $2.04, while estimates for 2026 remain unchanged at $2.24 [14] Valuation Metrics - AT&T's shares are trading at a price/earnings ratio of 12.83, which is lower than the industry average of 13.27 but above its historical mean of 11.32 [16] Overall Business Outlook - The company benefits from solid customer engagement in the wireless sector and a resilient business model, with strategic collaborations expected to support long-term growth [18] - However, intensifying competition and macroeconomic challenges are concerns for future margins [19]

Group 1 - AT&T will host a webcast featuring Jeremy Legg, the chief technology officer, at the KeyBanc Technology Leadership Forum on August 11, 2025, starting at 11 a.m. ET [2][4] - The webcast will be available live and for replay on the AT&T Investor Relations website, encouraging viewers to join a few minutes early [3][4] - AT&T serves over 100 million U.S. customers and nearly 2.5 million businesses, providing services from traditional phone calls to advanced 5G wireless and multi-gig internet offerings [4]

Core Viewpoint - AT&T announced the dual listing of its common stock on NYSE Texas, effective August 1, 2025, while maintaining its primary listing on the New York Stock Exchange [1][2]. Company Commitment to Texas - AT&T has a long-standing relationship with the New York Stock Exchange, dating back to September 4, 1901, and is proud to strengthen its commitment to Texas through this dual listing [2][4]. - The company has invested nearly $13 billion in Texas network infrastructure from 2020 to 2024 and donated over $43 million across the state, with nearly $11 million aimed at bridging the digital divide [4][5]. Community Engagement - AT&T operates 14 Connected Learning Centers in Texas to enhance connectivity and support local communities [4]. - The company employs nearly 24,000 individuals in Texas, contributing to the state's innovation and business growth [5]. Historical Significance - AT&T is one of only 12 companies that have been listed on the New York Stock Exchange for over 120 years, highlighting its historical significance in the financial market [2]. Business Operations - AT&T serves more than 100 million U.S. families and nearly 2.5 million businesses, providing services that range from traditional phone calls to advanced 5G wireless and multi-gig internet offerings [6].

Retirement is complicated and you only get once chance to do it right. Don't miss out because you didn't know what was out there. Analyst's Disclosure:I/we have a beneficial long position in the shares of T either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's ...

Core Insights - The telecommunications industry in the United States is dominated by three major players: AT&T, Verizon, and T-Mobile, collectively known as the "Big Three" [1] AT&T - AT&T reported Q2 financials on July 23, beating sales estimates by over $400 million and surpassing adjusted EPS forecasts by 1 cent, resulting in a share price increase of over 1% [1][4] - The company added 401,000 net postpaid cell phone subscribers, a 4% decrease from the previous year but better than expected [2] - AT&T's broadband business added approximately 243,000 fiber optic customers and 203,000 AT&T Internet Air customers, with fiber revenues growing by nearly 19% [2] - The percentage of "converged customers" increased to just under 41%, indicating progress in cross-selling services [3] - AT&T anticipates $6.5 billion to $8 billion in cash tax savings through 2027 due to the One Big, Beautiful Bill (OBBB) [4] Verizon - Verizon posted Q2 results on July 21, beating expectations on revenue and adjusted EPS, and slightly raised its full-year guidance [6] - Shares closed up 4% following the results, but the company experienced a net loss of 9,000 postpaid cell phone customers, contrary to Wall Street expectations [7] - Verizon's broadband business added 293,000 net customers, down from 391,000 a year ago, indicating a solid quarter despite the postpaid losses [8] T-Mobile - T-Mobile reported Q2 results on July 23, slightly beating sales growth estimates and achieving a 14% increase in adjusted EPS to $2.84, surpassing the anticipated 8% rise [10] - The company added 830,000 net postpaid cell phone customers, marking a record for Q2, and achieved a total of 1.7 million net postpaid adds, another Q2 record [12] - T-Mobile's revenue per account (ARPA) increased by 5%, the highest growth rate in eight years, and it expects $1.5 billion in OBBB-related cash tax benefits in 2026 [13] - Overall, T-Mobile had the strongest performance among the three companies, leading to a price target increase from Morgan Stanley from $265 to $285, implying a 17% upside [15]

Core Insights - The article discusses the contrasting dividend strategies of Alphabet and AT&T, highlighting the trade-off between high yield and growth potential in dividend-paying stocks [2][15]. Group 1: Alphabet - Alphabet initiated a dividend program last year and raised its payout by 5% to $0.21 per share, resulting in a yield of approximately 0.4% [4][5]. - Over the past five years, Alphabet's earnings per share have increased by 29.4% annually, with free cash flow reaching around $66.7 billion, of which less than 15% was used for dividends [5][11]. - Alphabet's strong market position in advertising and cloud computing, along with its dominance in the search engine and browser markets, positions it well for long-term growth [6][7]. Group 2: AT&T - AT&T's earnings per share have only increased by 15.8% over the past five years, partly due to the spinoff of media assets and loss of wireline connections [8][9]. - The company offers a high dividend yield of around 4%, which is about ten times that of Alphabet, but has not increased its dividend since a reduction in 2022 [10][11]. - AT&T's free cash flow was $19.6 billion over the past 12 months, more than double its dividend obligation, and is expected to remain sufficient despite a projected decline in wireline revenue [11][12]. Group 3: Investment Considerations - For long-term investors, Alphabet may provide better growth potential in dividend income, while AT&T may be more suitable for those closer to retirement seeking immediate income [15][16]. - If projected earnings growth rates continue, Alphabet's yield on cost could surpass AT&T's by 2035, making it a more attractive option for long-term investment [16].

Core Viewpoint - AT&T has shown strong performance in the stock market but experienced a pullback after failing to raise guidance following its second quarter results, which investors had anticipated after Verizon's positive outlook [1][13]. Subscriber Growth - AT&T added 479,000 retail postpaid subscribers in the second quarter, including 401,000 retail postpaid phone additions, benefiting from Verizon's price hike [2]. - The company lost 34,000 prepaid subscribers, which is considered less significant compared to postpaid subscribers [2]. Revenue Performance - Overall mobility-segment revenue increased by 6.7% to $21.8 billion, with mobility service revenue rising by 3.5% to $16.9 billion and equipment sales surging by 18.8% to $5 billion [3]. - Broadband ARPU climbed by 7.5% to $71.16, while fiber ARPU rose by 6.2% to $73.26, contributing to total consumer broadband revenue growth of 5.8% to $3.5 billion [4]. Fiber Investment Strategy - AT&T plans to ramp up fiber investments to reach 4 million new locations per year, aiming to double its fiber locations to 60 million by 2030 [5]. - The investment will be supported by new tax provisions allowing immediate full depreciation of certain assets [6]. Wireline Segment Challenges - The business wireline segment saw a 9.3% revenue decrease to $4.3 billion, shifting from an operating profit of $102 million to a loss of $201 million [8]. - Adjusted EBITDA for this segment fell by 11.3% to $1.3 billion [9]. Financial Highlights - Total revenue rose by 3.5% to $30.8 billion, with adjusted EPS increasing by 5.8% to $0.54, surpassing Wall Street expectations [9]. - AT&T generated $9.8 billion in operating cash flow and $4.4 billion in free cash flow, maintaining a dividend payout of over $2 billion with a coverage ratio of 2.2 times [10]. Future Guidance - The company maintained its guidance, projecting mobility service revenue growth of 3% or better and adjusted EPS between $1.97 to $2.07, down from $2.26 in 2024 [11][12]. - Future capital expenditures are expected to be between $23 billion to $24 billion annually in 2026 and 2027, with projected free cash flow exceeding $18 billion in 2026 and $19 billion in 2027 [12]. Competitive Landscape - AT&T is aggressively competing with Verizon in subscriber additions by offering better deals and maintaining lower prices [13]. - The company aims to leverage tax benefits from the "One Big, Beautiful Bill" to enhance its fiber network, especially as Verizon expands its fiber network through the acquisition of Frontier Communications [14]. Valuation Comparison - Despite the stock's pullback, AT&T trades at a forward P/E of about 13.5 based on 2025 earnings estimates, compared to Verizon's forward P/E of 9 [15]. - The valuation gap and higher yield of Verizon (about 6%) suggest a preference for Verizon over AT&T, although both companies are seen as strong long-term investments [16].

Core Viewpoint - The article discusses the potential upside for Verizon (VZ) stock, particularly in the context of the Federal Reserve's decision to cut interest rates, which could positively impact the stock's performance [1]. Group 1: Company Analysis - The author previously suggested that Verizon stock had upside potential, especially if the Federal Reserve were to cut rates [1]. - The article indicates that the Federal Reserve did indeed cut rates later, which may have implications for Verizon's stock performance [1]. Group 2: Investment Strategy - The author emphasizes a long-term investment strategy focused on strategic buying opportunities, particularly in dividend and value stocks [1]. - This investment approach has led to a high rating on Tipranks.com and a significant following on Seeking Alpha, indicating a level of credibility and expertise in the investment community [1].

Group 1 - Telecom companies have performed well despite a challenging macro environment characterized by prolonged high interest rates and tariffs [1] - AT&T has made progress after reducing its dividend, moving away from its previous status as a Dividend Aristocrat [1] Group 2 - The article emphasizes the importance of quality dividend-paying companies for building investment portfolios, particularly for lower and middle-class workers [1]