Core Viewpoint - Telecom stocks are not as overpriced as previously thought, with a recent recovery in share prices for major companies like Verizon, AT&T, and T-Mobile after initial declines due to market concerns [1][2]. Group 1: Market Reactions - Verizon's chief revenue officer indicated a reduction in promotional activities to improve profits, which raised concerns about increased competitive intensity and potential price wars in the telecom sector [3]. - Following the initial market reaction, shares of Verizon, AT&T, and T-Mobile rebounded, with Verizon gaining 1.8%, AT&T up 1.9%, and T-Mobile increasing by 2.5% [2]. Group 2: Industry Outlook - Verizon warned of "soft" wireless subscriber growth for Q1 2025, with analysts predicting a general slowdown in mobile subscriber growth and cautioning against a focus on customer acquisition at the expense of market growth [4]. - Concerns about the impact of tariffs on telecom services are less significant, as existing phones can still generate revenue despite potential increases in import costs for new devices [5]. Group 3: Economic Factors - Inflation concerns are easing, with recent reports showing lower-than-expected inflation rates, which may positively influence the telecom sector [6]. - New telecommunications services, such as direct-to-cell satellite communications from companies like SpaceX Starlink and AST SpaceMobile, are seen as potential growth drivers for the industry [7]. Group 4: Investment Analysis - A comparison of key financial metrics shows AT&T as the most overvalued stock, with a price-to-earnings ratio of 16.9, while Verizon has a lower ratio of 10.2 and a higher dividend yield of 6.4% [8]. - T-Mobile is positioned as a growth stock with a projected growth rate of 20.3%, appealing to growth-oriented investors, while Verizon may attract value and income-focused investors due to its lower valuation and higher dividend yield [9]. - Overall, telecom stocks are viewed as not overpriced, presenting various investment opportunities for different investor profiles [10].

Core Insights - Telecom giants AT&T and Verizon are not traditional leaders in the AI revolution, but their connectivity services are essential for the data-intensive AI ecosystem [1] - Both companies are leveraging their 5G and fiber optic networks to meet the increasing demand for edge computing, resulting in stock price increases of 19% for AT&T and 13% for Verizon year to date [2] AT&T Overview - AT&T has seen a significant stock market recovery, with shares up 58% over the past year, attributed to a focus on core telecom strengths and exiting media ventures [4] - For the year ending December 31, 2024, AT&T's mobility segment revenue increased by 3.3%, with consumer broadband revenue rising by 7.2% due to fiber network expansion [5] - AI integration is contributing to AT&T's success, enhancing automation and capturing demand for middle mile infrastructure [6] - AT&T projects further growth for 2025, with a dividend yield of 4.1% and a potential dividend hike, alongside a new $10 billion share buyback program [7][8] Verizon Overview - Verizon, while experiencing a recent rally, has advantages such as larger total revenue and stronger free cash flow for 2024, making it a potentially better investment [9] - Verizon shares trade at a forward P/E ratio of around 10, offering better value compared to AT&T's 13, along with a higher dividend yield of 5.8% [10] - Verizon has a more defined AI strategy with its Verizon AI Connect solution and partnerships with tech leaders like Alphabet, Meta Platforms, and Nvidia [11][12] Investment Recommendation - Both AT&T and Verizon are positioned to benefit from long-term telecommunications opportunities, but Verizon is viewed as the better investment choice for 2025 due to its current valuation and growth potential [13][14]

Core Insights - AT&T will release its first-quarter 2025 results on April 23, 2025, before the New York Stock Exchange opens [2][5] - A conference call to discuss the results will be hosted by AT&T at 8:30 a.m. ET on the same day, with a live webcast available [2][5] - Earnings release and related materials will be accessible on the AT&T Investor Relations website [2] Company Overview - AT&T connects over 100 million U.S. families and nearly 2.5 million businesses, providing services from traditional phone calls to advanced 5G wireless and multi-gig internet offerings [4]

Core Insights - AT&T's CFO will discuss the company's multi-year strategic growth plan at the Deutsche Bank Media, Internet & Telecom Conference [3] - The company is on track to meet its 2025 consolidated financial guidance and multi-year outlook [4][12] Financial Performance - AT&T expects full-year adjusted EPS of $1.97 to $2.07 and first-quarter adjusted EPS of approximately $0.48 or higher, consistent with or better than the first quarter of 2024 [6] - The company anticipates full-year free cash flow of over $16 billion and first-quarter free cash flow of approximately $2.8 billion or higher, also consistent with or better than the first quarter of 2024 [7] - AT&T expects to receive approximately $1.4 to $1.5 billion in cash payments from DIRECTV related to the sale of its 70% stake, with total after-tax cash payments expected to be $5.4 billion in 2025 [8] Strategic Initiatives - The company is focused on becoming the best connectivity provider in America, emphasizing customer-first strategies and continued network investment [12] - AT&T aims to achieve a net leverage target of net-debt-to-adjusted EBITDA in the 2.5x range in the first half of 2025 and maintain this leverage through 2027 [9]

AT&T's (T 1.46%) stock turnaround has been one of the more surprising happenings in the stock market over the past 12 months. Its stock is up by around 52% in that span and has nearly touched its five-year high.Its sudden switch from consistent disappointment to being one of the higher-performing stocks in the S&P 500 has left many wondering whether this is just a phase, or if AT&T has what it takes to continue delivery in the long term.If you're like me, I believe it has what it takes. The company hit a lo ...

Join for a 100% Risk-Free trial and see if our proven method can help you too. You do not need to pay for the costly lessons from the market itself.Readers following my analysis know that I have turned bullish toward the AT&T ( T ) stock in the past year or so. As the latest example, my last article on theSensor Unlimited contributes to the investing group Envision Early Retirement which is led by Sensor Unlimited. They offer proven solutions to generate both high income and high growth with isolated risks ...

In the latest market close, AT&T (T) reached $26.16, with a -0.24% movement compared to the previous day. This change lagged the S&P 500's daily gain of 1.12%. Meanwhile, the Dow experienced a rise of 1.14%, and the technology-dominated Nasdaq saw an increase of 1.46%.Coming into today, shares of the telecommunications company had gained 8.12% in the past month. In that same time, the Computer and Technology sector lost 7.5%, while the S&P 500 lost 4.13%.Analysts and investors alike will be keeping a close ...

Finding stocks that will outperform the market is no easy task. Indeed, according to First Trust advisors, only 28% of stocks outperformed the S&P 500 in 2024.That said, it's not impossible to identify market-beating stocks. So, let's look at one stock that has outperformed the market recently, and, in my opinion, will continue to outperform: AT&T (T -5.41%). The turnaround has finally arrivedIt's taken years, but the long-awaited turnaround in AT&T shares finally seems to have arrived. Between 2016 and 202 ...

Core Viewpoint - AT&T is on track to achieve its 2025 consolidated financial guidance and is focused on a multi-year strategic growth plan aimed at enhancing its position as a leading connectivity provider in America [3][11]. Financial Guidance - The company expects to generate over $50 billion in financial capacity over the next three years, primarily through organic growth [4]. - AT&T plans to return over $40 billion to shareholders through dividends and share repurchases, maintaining an annualized common stock dividend of $1.11 per share [5]. - The company has authorized an initial tranche of approximately $10 billion for share repurchases, expected to commence upon reaching its net leverage target [6]. Strategic Growth Plan - The multi-year strategic growth plan emphasizes customer-centric approaches and continued network investments, aiming to position AT&T favorably within the connectivity industry by the end of the decade [9][11]. - The plan includes approximately $10 billion in incremental financial flexibility for strategic investments, debt repayment, and additional shareholder returns [7]. Business Segments Performance - In Mobility, AT&T anticipates full-year wireless service growth in the higher end of the 2% to 3% range and Mobility EBITDA growth in the higher end of the 3% to 4% range [10]. - Consumer Wireline is expected to see mid-teens revenue growth in fiber broadband and high-single to low-double-digit EBITDA growth [13]. - Business Wireline is projected to experience a mid-teens decline in EBITDA due to ongoing industry-wide declines in legacy services [14].

Morgan Stanley Information set forth in this presentation contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this presentation based on new information or otherwise. This presentation may contain certai ...