AT&T Shares Rise 28.6% Year to Date: Is the Stock a Buy Now?

Core Insights - AT&T, Inc. has outperformed the Wireless National industry and the S&P 500, gaining 28.6% over the past year compared to the industry's 15.9% growth [1][8] - The company has also surpassed competitors like Verizon and T-Mobile, which gained 10.5% and 16.8% respectively during the same period [2][8] Fiber Expansion and Strategic Initiatives - AT&T is aggressively expanding its fiber network, with a joint venture, Gigapower, aiming to reach 1.5 million fiber locations across six states [3][4] - The company’s fiber broadband network has reached 30 million locations and is set to acquire Lumen's fiber business, which will enhance its footprint across 11 states [5] - By 2030, AT&T expects to reach approximately 50 million customer locations with its fiber network, and over 60 million when including Lumen's assets [5] 5G Connectivity and Spectrum Acquisition - Despite a mature mobile market, the demand for 5G connectivity driven by AI and IoT is increasing [6] - AT&T plans to acquire wireless spectrum licenses from EchoStar for $23 billion, which will enhance its 5G offerings [6][8] Financial Position and Challenges - As of June 30, 2025, AT&T had $10.5 billion in cash and cash equivalents, with long-term debt increasing to $123.06 billion [10] - The company’s current ratio is 0.81 and cash ratio is 0.22, indicating potential challenges in meeting short-term obligations [10] - Despite improvements in short-term liquidity, high debt obligations remain a significant obstacle [15] Earnings Estimates and Valuation - Earnings estimates for AT&T for 2025 and 2026 have seen upward revisions over the past 60 days [11] - The company is trading at a price/earnings ratio of 13.38, which is lower than the industry average of 13.69 but above its historical mean of 12.31 [12]