AT&T Shares Rise 14.2% in a Year: Should You Invest Now?

Core Insights - AT&T, Inc. has gained 14.2% over the past year, outperforming the Wireless National industry's decline of 5.1% [1] - The stock has underperformed compared to the Zacks Computer & Technology sector and the S&P 500 during the same period [1] Performance Comparison - AT&T has outperformed peers like Verizon Communications Inc. (0.7% gain) and T-Mobile US, Inc. (11.5% decline) [2] Business Expansion and Product Offerings - The company is rapidly expanding its portfolio to meet evolving customer needs, introducing AT&T Express Waves for ultra-fast, secure connections [3][4] - AT&T has added 10 million fiber Internet customers, nearly 40% more than Verizon, and aims to reach 60 million total fiber locations by the end of 2026 [5][9] - The company reported 288K fiber net adds and 16.8% year-over-year fiber revenue growth, boosting the consumer wireline business [6][18] Revenue Growth and Challenges - Service revenue growth slowed to 0.8% year-over-year, with a decline in postpaid phone ARPU from $57.07 to $56.64 [10] - Postpaid churn increased to 1.07% from 0.93%, indicating challenges in customer retention amid stiff competition [10][11] - Business wireline revenues declined by 7.8% year-over-year, with EBITDA from this segment decreasing by 12.9% [12] Valuation Metrics - AT&T appears to be trading relatively cheaper compared to the industry, with a price/earnings ratio of 11.24, lower than the industry average of 11.8 and the stock's mean of 12.56 [14]