T Shares Rise 20% in the Past Year: Should You Invest Now?

Core Insights - AT&T, Inc. has experienced a 20% stock price increase over the past year, significantly outperforming the Wireless National industry's growth of 4% [1] - The company has also outperformed competitors such as Verizon and Comcast, which saw declines of 7.9% and 29.5% respectively during the same period [2] Investment and Growth Strategy - AT&T has invested $145 billion in wireline and wireless networks from 2020 to 2024, positively impacting key sectors of the American economy, including transportation and logistics [4] - The company is focusing on small and mid-sized businesses by simplifying network complexities, enhancing connectivity, and integrating built-in security systems [3] - AI and machine learning capabilities are being deployed to optimize network services, including the AT&T Geo Modeler, which enhances network performance during adverse conditions [5] Customer Growth and Fiber Expansion - In the second quarter, AT&T added 243,000 fiber customers and aims to reach over 50 million fiber locations by the end of 2030, supported by the One Big Beautiful Bill Act [6] Competitive Landscape - The wireline division faces challenges due to losses in access lines from competition with VoIP providers and aggressive offerings from cable companies [10] - Intense competition from industry leaders like Verizon and Comcast poses additional challenges, particularly in the fiber expansion initiative [11] Financial Performance and Valuation - Earnings estimates for AT&T for 2025 and 2026 have remained stable over the past 60 days, with current estimates at $2.05 for 2025 and $2.25 for 2026 [12] - AT&T's shares are trading at a price/earnings ratio of 11.72, which is lower than the industry average of 12.5, indicating a relatively cheaper valuation [13]