Rogers Communications Inc. (NYSE:RCI) is included among the 13 Best Blue Chip Stocks to Buy Under $50. Morgan Stanley Updates Rogers Communications (RCI) Outlook Amid Shifting Telecom Dynamics Image by Steve Buissinne from Pixabay Morgan Stanley, on December 10, lifted its price target on Rogers Communications Inc. (NYSE:RCI) to C$50 from C$46 and maintained an Underweight rating on the shares. The update came as part of a broader 2026 outlook on the telecom and cable service sector. Rogers Communicati ...

Core Insights - AT&T has deployed mid-band spectrum from EchoStar to nearly 23,000 cell sites, covering almost two-thirds of the U.S. population, enhancing network efficiency and customer experience [1][2] - The integration of this spectrum has resulted in an 80% improvement in download speeds for mobility and a 55% increase for AT&T Internet Air [2][6] - The $23 billion deal for spectrum acquisition is expected to close in mid-2026 and will reduce capital investment needs by eliminating the necessity for new cell site construction [2][6] Company Developments - The deployment aligns with AT&T's strategy to enhance its 5G offerings and support demanding applications such as AI and IoT [3] - The enhanced network infrastructure is also facilitating the expansion of AT&T Internet Air, its fixed wireless service [3] - AT&T's stock has gained 11% over the past year, contrasting with an 8.2% decline in the industry [6] Competitor Analysis - T-Mobile covers 98% of the U.S. population with its 5G network, utilizing mid-band 2.5 GHz spectrum for extensive coverage and fast speeds [4] - Verizon holds a significant amount of spectrum, including 1,741 MHz of mmWave spectrum, and is rapidly deploying new C-band equipment to enhance its 5G ultra-wideband service [5] Financial Estimates - The Zacks Consensus Estimate for AT&T's earnings for 2025 has increased over the past 60 days, indicating positive market sentiment [7] - AT&T's forward price-to-sales ratio is 1.45, which is below the industry average of 1.86, suggesting potential undervaluation [9]

Financial Performance - Consolidated revenue decreased by 12.2% YoY to KRW 3.98 trillion [7, 12] - SKT revenue declined by 16.8% YoY to KRW 2.67 trillion, driven by subscriber attrition and the Customer Appreciation Package [7, 12, 15] - Consolidated operating income decreased significantly by 90.9% YoY to KRW 48.4 billion [7, 12] - Consolidated net loss was KRW 166.7 billion, including a KRW 134.8 billion penalty from the Personal Information Protection Commission [12] - Non-consolidated operating loss was KRW 52.2 billion [19] - Non-consolidated net loss was KRW 206.6 billion, also including the KRW 134.8 billion penalty [19] - EBITDA decreased by 34.9% YoY to KRW 946 billion [7] SK Broadband (SKB) Performance - SKB revenue increased by 3.4% YoY to KRW 1.14 trillion [7, 20, 24] - SKB operating income increased slightly by 1.5% YoY to KRW 89 billion [7, 20, 24] Business Highlights - 5G subscribers recovered to pre-cybersecurity incident levels, reaching 17.3 million [27] - AI DC revenue increased by 53.8% YoY [28] - Telecom-related B2B revenue showed a stable trend, increasing by 0.8% YoY [27]

Core Viewpoint - Verizon Communications Inc. is recognized as a strong candidate for dividend-focused retirement portfolios, bolstered by consistent dividend increases and a positive outlook for future growth [2][3]. Group 1: Financial Performance - Verizon reported stronger-than-expected second-quarter earnings and raised its full-year guidance, enhancing investor confidence in its growth and shareholder return balance [2]. - The company has achieved its 19th consecutive year of dividend increases, the longest streak in the US telecom sector, indicating a commitment to returning value to shareholders [3]. Group 2: Dividend Information - Verizon currently offers a quarterly dividend of $0.69 per share, translating to a dividend yield of 6.35% as of September 21 [4]. Group 3: Strategic Initiatives - The company is investing in the transition to 5G technology, which is expected to provide faster data speeds and support future growth [3]. - Verizon's $20 billion acquisition of Frontier Communications in 2024 aims to expand its fiber network, further supporting earnings growth [3].

Technology & Development - The company aims to provide full 5G service from space to cell phones [1] - Achieving this goal requires launching larger, more powerful satellites [1] - The satellite launch depends on a rocket that is still under development [1] Spectrum Acquisition - The company is acquiring spectrum to enable its 5G service [1]

Technology & Development - The company aims to provide full 5G service from space to cell phones [1] - This plan hinges on launching larger, more powerful satellites [1] - The satellite launch depends on a rocket that is still under development [1]

The spectrum SpaceX is buying could let it beam full 5G service from space to cell phones. But that depends on it launching bigger, more powerful satellites with a rocket that is still in development. (Photo: Sergio Flores/AFP via Getty Images) https://t.co/S6Xqs8IAxW https://t.co/e2drazhOMg ...

Financial Performance - Consolidated revenue decreased by 1.9% year-over-year to KRW 4339 billion [9], primarily due to the cybersecurity incident and sales of certain subsidiaries [13] - Consolidated operating income declined significantly by 37.1% year-over-year to KRW 3383 billion [9], impacted by expenses related to the cybersecurity incident [13] - Consolidated net income experienced a substantial decrease of 76.2% year-over-year, reaching KRW 832 billion [9] - Non-consolidated revenue saw a decrease of 1.8% year-over-year, amounting to KRW 3135 billion [15] - Non-consolidated operating income decreased by 44.3% year-over-year to KRW 2509 billion [15], due to increased expenses from the cybersecurity incident [20] - SK Broadband (SKB) revenue increased by 2.4% year-over-year to KRW 1120 billion [9], driven by B2B business growth [22] - SKB operating income increased by 9.8% year-over-year to KRW 92 billion [9] Business Highlights - Telecom-related B2B revenue increased by 1.4% year-over-year [31] - AIDC revenue increased by 13.3% year-over-year [32] - AIX revenue increased by 15.3% year-over-year [32] - 5G subscribers experienced a loss due to the cybersecurity incident [31] - CAPEX increased by 63.6% year-over-year to KRW 635 billion [9] Shareholder Returns - Q2 dividend payment totaled KRW 1768 billion, with a DPS of KRW 830 [52] - The shareholder return policy targets more than 50% of the adjusted net profit for the year on a consolidated basis [53]

Core Insights - T-Mobile, US, Inc. (TMUS) reported strong second-quarter 2025 results, with both revenue and net income exceeding estimates, driven by significant postpaid customer growth [1][10] Financial Performance - Net income for Q2 was $3.22 billion, or $2.84 per share, reflecting a 10.2% increase from $2.92 billion or $2.49 per share in the same quarter last year, surpassing the Zacks Consensus Estimate of $2.69 [2][10] - Total revenues reached $21.13 billion, up from $19.77 billion year-over-year, driven by robust service revenue growth, and exceeded the consensus estimate of $20.97 billion [3][10] Segment Results - Total service revenues were $17.43 billion, an increase from $16.42 billion in the previous year, with a 6.1% year-over-year growth primarily due to strong demand for postpaid services [4] - Postpaid services generated $14.07 billion in revenues, marking a 9.1% increase year-over-year [4] - Equipment revenues rose to $3.43 billion from $3.1 billion in the prior year, attributed to a higher average revenue per device sold [7] Customer Growth - T-Mobile added 1.7 million postpaid net customers and 318,000 postpaid net accounts during the quarter, with a postpaid phone churn rate of 0.9% [5] - Average revenue per postpaid account increased to $149.87 from $142.54 year-over-year [5] Cash Flow and Liquidity - Cash generated from operating activities was $6.99 billion, up from $5.52 billion in the prior year, with adjusted free cash flow of $4.6 billion, an increase from $4.4 billion [11] - As of June 30, 2025, T-Mobile had $10.25 billion in cash and cash equivalents, alongside $75.01 billion in long-term debt [11] Outlook - T-Mobile has raised its 2025 guidance, now expecting postpaid net customer additions between 6.1 million and 6.4 million, up from the previous estimate of 5.5-6 million [12] - Core adjusted EBITDA is projected to be between $33.3 billion and $33.7 billion, with anticipated cash from operating activities in the range of $27.1 billion to $27.5 billion [12]

Core Viewpoint - AT&T Inc. has significantly outperformed the Wireless National industry and major competitors over the past year, indicating strong market performance and growth potential [1][4]. Price Performance - AT&T's stock has increased by 23.7% over the past year, while the Wireless National industry grew by 9.6%. In contrast, the S&P 500 composite and Zacks Computer & Technology sector declined by 3.9% and 6%, respectively [1]. - The stock closed at $27.61, reflecting a 0.1% decrease in the last trading session and is currently trading at a 5% discount to its 52-week high [5]. Major Tailwinds for AT&T - The company is enhancing its network infrastructure, focusing on 5G and fiber networks to improve coverage and capacity nationwide [6]. - AT&T reported 290,000 post-paid net additions in Q1 2025, including 324,000 postpaid wireless phone additions, with a postpaid churn rate of 0.83% [7]. - The company aims to exceed 30 million total fiber locations by mid-2025 and over 50 million by 2029, transitioning from legacy copper networks to 5G and fiber [8]. - AT&T is capitalizing on the 5G boom, utilizing millimeter-wave spectrum in dense areas and mid- and low-band spectrum in suburban and rural areas [9]. - The company is focusing on edge computing services to enhance data traffic management and improve customer experiences through partnerships with Google Cloud and Microsoft [10][12]. Financial Performance - AT&T reaffirmed its full-year free cash flow guidance of over $16 billion, with Q1 2025 generating $9.05 billion in cash from operations and $3.15 billion in free cash flow [13]. - The company plans to initiate share repurchases targeting $3 billion by year-end under a $10 billion authorization, indicating a commitment to returning capital to shareholders [14]. Challenges - Despite strong wireless growth, AT&T faces challenges from declining legacy services and competitive pressures in its wireline division [15]. - High-speed Internet revenues are contracting due to the decline of legacy Digital Subscriber Line services and increased competition from cable companies [16]. - The evolving macroeconomic environment and potential tariff impacts on costs remain concerns for the company [18]. - Analysts have revised estimates downwards for the current and next year, reflecting bearish sentiments regarding the stock's growth potential [19]. Valuation Metrics - AT&T's shares are trading at a price/earnings ratio of 12.96, which is lower than the industry average of 13.88 but above its historical mean of 9.64 [21]. Investment Strategy - By investing in infrastructure and new technologies, AT&T is positioned to enhance connectivity and drive postpaid subscriber growth [23]. - However, a saturated wireless market and competitive pricing pressures have affected profitability, leading to skepticism about future growth [24].