Is AT&T’s Stock A Buy Now?

2007

2008

2009

2010

2011

Revenue ($)in billions

118.93

123.44

122.51

124.28

126.72

Diluted EPS ($)

1.94

-.44

2.05

3.35

.66

 

Quarterly revenue growth and earnings haven’t shown any substantial surprises.

     9/2011      12/2011      3/2012      6/2012      9/2012
Revenue ($)in billions

31.48

32.50

31.82

31.58

31.46

Diluted EPS ($)

.61

-1.12

.60

.66

.63

 

T = Trends Support the Industry, But Not Necessarily the Company

As stated above, wireless is on fire right now. With AT&T offering 4G, it’s a great option for anyone. The problem is the pricing plans being offered by competitors, especially when it comes to packages offering voice, data, and video. There is definitely a possibility AT&T will begin to lose market share over the next few years.

Conclusion

With a Forward P/E of 13.31, a 5.40% yield, and the other positives listed above, AT&T is a good risk despite the potential loss of market share in the near future. AT&T is an OUTPERFORM in the medium term.

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To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

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