Don't Buy AT&T Before Checking Its Fundamentals!

By Blake Campbell • Tuesday, July 22 10:03 • Permanent Link

Join us for a quick overview of AT&T, a Communication Equipment company whose shares moved 1.3% today. Here are some facts about the stock that should help you see the bigger picture:

AT&T has moved 45.2% over the last year, and the S&P 500 logged a change of 13.2%
T has an average analyst rating of buy and is -5.56% away from its mean target price of $29.37 per share
Its trailing earnings per share (EPS) is $1.63
AT&T has a trailing 12 month Price to Earnings (P/E) ratio of 17.0 while the S&P 500 average is 29.3
Its forward earnings per share (EPS) is $2.24 and its forward P/E ratio is 12.4
The company has a Price to Book (P/B) ratio of 1.92 in contrast to the S&P 500's average ratio of 4.74
AT&T is part of the Telecommunications sector, which has an average P/E ratio of 18.22 and an average P/B of 1.86
T has reported YOY quarterly earnings growth of 29.6% and gross profit margins of 0.6%
The company has a free cash flow of $14.41 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter
AT&T Inc. provides telecommunications and technology services worldwide. The company operates through two segments, Communications and Latin America. The Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, carrying cases/protective covers, and wireless chargers through its own company-owned stores, agents, and third-party retail stores. It also provides AT&T Dedicated Internet, fiber ethernet and broadband, fixed wireless, and hosted and managed professional services; and copper-based voice and data, Virtual Private Networks (VPN), wholesale, outsourcing, and IP, as well as customer premises equipment for multinational corporations, small and mid-sized businesses, governmental, and wholesale customers. In addition, this segment offers broadband services, including fiber connections, legacy telephony voice communication services, and other VoIP services and equipment to residential customers. This segment markets its communications services and products under the AT&T, AT&T Business, Cricket, AT&T PREPAID, AT&T Fiber, and AT&T Internet Air brand names. The Latin America segment provides postpaid and prepaid wireless services in Mexico under the AT&T and Unefon brand names, as well as sells smartphones through its stores, agents and third-party retail stores. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in 2005. AT&T Inc. was incorporated in 1983 and is based in Dallas, Texas.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.