AT&T Long-Term Success

AT&T (T) – Provides telephone and broadband service worldwide.

What I Like

With AT&T share price currently at $24.04 its in a greater position to target long-term growth. With a 52-Week High of $35.59 (June 08) and a 52-Week Low $20.90 (Oct 08) the stock has seen the share of volatility. Like I reiterate time after time, I love damaged stock not damaged companies and AT&T is a perfect example. This telecom giant is poised to outperform the whole market in the coming year making it a Bullish stock. Revenue projections for AT&T are expected to rise in the next two years roughly 2% as they continue to prosper through tough economic times. However on contrary they expect wireless revenue’s to climb over 10% based upon wireless service data and added customer additions.   I believe that strong recent results show that the growth in consumer wireless and broadband can help offset other pressures AT&T has to exhibit strong fundamentals for 2009 leading into 2010. I am not worried about the weak economy affecting AT&T as I believe they are well situated by their strong brand loyalty and improved balance sheet. The recently raised dividend up by 2.5% can help secure these theories.

What I Don’t Like

Due to the weak economy risks and concerns are increased pricing competition from other wireless providers and balance sheet weaknesses long-term if this bleak economy continues.

Overview

Overall AT&T is a solid stock and a great buy. At $24.04 a share I foresee a 12-month target price of around $30 due to calculated EPS and P/E Valuations.

Tricky World of Derivatives

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