Is AT&T’s Stock a Buy Now?

E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio for AT&T is now stronger than the debt-to-equity ratio for Verizon, which wasn’t the case as early as yesterday. Cash on AT&T’s balance sheet has increased by more than debt added. Operating cash flow is very impressive at over $36 billion.

Debt-To-Equity

Cash

Long-Term Debt

T

0.43

$4.87 Billion

$69.80 Billion

S

2.51

$6.33 Billion

$21.30 Billion

VZ

0.61

$3.56 Billion

$51.99 Billion

 

T = Technicals on the Stock Chart Are Mixed

AT&T has underperformed Verizon and Sprint Nextel Corporation (NYSE:S) over a three-year time frame. However, the numbers are close and AT&T yields 5.30 percent whereas Verizon yields 4.80 percent and Sprint offers no yield. On the other hand, Sprint has dominated this competition over the past year.

1 Month

Year-To-Date

1 Year

3 Year

T

2.04%

2.13%

18.37%

57.62%

S

2.64%

-0.44%

156.60%

64.10%

VZ

-0.83%

-0.21%

18.67%

63.31%

 

At $33.98, AT&T is trading slightly above its 50-day SMA, and below its 100-day and 200-day SMA.         

50-Day SMA

33.97

100-Day SMA

35.24

200-Day SMA

34.93

 

E = Earnings Have Been Inconsistent  

The numbers below don’t include 2012, which can be found in the Catalyst section. Earnings have been inconsistent, but revenue has steadily increased since 2009.

2007

2008

2009

2010

2011

Revenue ($)in billions

118.93

123.44

122.51

124.28

126.72

Diluted EPS ($)

1.94

-0.44

2.05

3.35

0.66

 

We already know what happened this quarter. Now let’s take a look at previous quarters.  

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 ($)

0.61

-1.12

0.66

0.66

0.63

 

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