AT&T Inc.
T
$28.33
+0.07%
AT&T Inc. is a major telecommunications services company operating primarily in the United States. It is the third-largest US wireless carrier, with a core business built on connecting millions of postpaid and prepaid phone customers alongside fixed-line enterprise and residential services.…
T
AT&T Inc.
$28.33
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Investment Opinion: Should I buy T Today?
Based on a synthesis of the data, the objective assessment for AT&T (T) is a Hold. The stock offers an attractive valuation with a low P/E ratio and a solid dividend yield (~4.6%), supported by robust free cash flow. However, these positives are counterbalanced by significant leverage, liquidity constraints, and the stock trading near its 52-week high after a strong rally. For income-focused investors comfortable with the risks, it could be a portfolio component, but it lacks clear catalysts for substantial capital appreciation in the near term.
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T 12-Month Price Forecast
The analysis yields a neutral stance due to opposing forces: compelling value and cash flow versus high leverage and limited near-term growth. The base case of range-bound trading is most probable, with the dividend being a key support.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on AT&T Inc.'s 12-month outlook, with a consensus price target around $36.83 and implied upside of +30.0% versus the current price.
Average Target
$36.83
6 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
6
covering this stock
Price Range
$23 - $37
Analyst target range
Wall Street analyst coverage for AT&T appears active, with 13 analysts providing estimates. The consensus estimated EPS for the period is $3.43, with a low estimate of $3.36 and a high of $3.52. Estimated average revenue is approximately $141.9 billion. Recent institutional ratings from firms like Keybanc, Citigroup, and Wells Fargo maintain 'Overweight' or 'Buy' ratings, indicating a generally positive analyst sentiment.
Bulls vs Bears: T Investment Factors
AT&T presents a classic value-income profile with strong cash generation supporting its dividend, but weighed down by a heavy debt load and operational volatility. The stock's recent technical strength and low P/E ratio are positive, yet fundamental risks around leverage and liquidity persist.
Bullish
- Strong Free Cash Flow: $19.4B TTM FCF supports dividend and debt reduction.
- Low Valuation Multiples: Trailing P/E of 8.1 and forward P/E of 11.4 are low.
- Positive Analyst Sentiment: Multiple firms maintain 'Overweight' or 'Buy' ratings.
- Recent Outperformance: Stock up 16.7% in 3 months vs. SPY down 4.6%.
Bearish
- High Debt Burden: Debt-to-equity ratio of 1.57 indicates significant leverage.
- Liquidity Concerns: Current ratio of 0.91 suggests short-term coverage risk.
- Volatile Profitability: Net income margin swung from 30.3% to 11.1% in recent quarters.
- Near 52-Week High: Trading at 97% of 52-week high, limiting near-term upside.
T Technical Analysis
The stock's overall trend has been positive over the observed six-month period, rising from $27.01 on October 2, 2025, to $28.99 on March 31, 2026, representing a gain of 7.33%. Short-term performance has been strong, with the stock up 16.71% over the past three months and 3.50% over the past month, significantly outperforming the broader market (SPY) which declined 4.63% and 5.25% over the same periods, respectively. The current price of $28.99 is near the upper end of its 52-week range ($22.95 to $29.79), trading approximately 97% of the way toward its 52-week high, indicating a strong recent uptrend.
Beta
0.58
0.58x market volatility
Max Drawdown
-22.4%
Largest decline past year
52-Week Range
$23-$30
Price range past year
Annual Return
+0.7%
Cumulative gain past year
| Period | T Return | S&P 500 |
|---|---|---|
| 1m | -1.2% | -3.6% |
| 3m | +15.4% | -4.0% |
| 6m | +4.7% | -2.0% |
| 1y | +0.7% | +16.2% |
| ytd | +15.4% | -3.8% |
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T Fundamental Analysis
Revenue in Q4 2025 was $33.47 billion, showing a year-over-year growth of 3.62% from the same quarter in 2024. Profitability has been volatile; the net income margin for Q4 2025 was 11.13%, a significant improvement from the negative margin in Q3 2024 but down from the 30.33% margin in Q3 2025, which was boosted by a large one-time gain. The company's financial health shows a high debt-to-equity ratio of 1.57, indicating significant leverage, but it generated substantial free cash flow of $19.44 billion over the trailing twelve months, providing resources for its dividend and debt obligations. Operational efficiency metrics are mixed, with a Return on Equity (ROE) of 19.80% as of the latest data, which is strong, but the current ratio of 0.91 suggests potential liquidity constraints in covering short-term liabilities.
Quarterly Revenue
$33.5B
2025-12
Revenue YoY Growth
+0.03%
YoY Comparison
Gross Margin
+1.78%
Latest Quarter
Free Cash Flow
$19.4B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is T Overvalued?
Given the company's positive net income, the primary valuation metric is the Price-to-Earnings (P/E) ratio. AT&T's trailing P/E ratio is 8.14, and its forward P/E is 11.39, based on the provided data. These multiples suggest the stock is trading at a relatively low earnings multiple. A peer comparison cannot be performed as industry average valuation multiples were not provided in the input data.
PE
8.1x
Latest Quarter
vs. Historical
High-End
5-Year PE Range -228x~25x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
6.1x
Enterprise Value Multiple
Investment Risk Disclosure
The primary risk is financial leverage, with a debt-to-equity ratio of 1.57. While substantial free cash flow ($19.4B TTM) provides a cushion for interest payments and the dividend, high debt limits strategic flexibility and increases vulnerability to rising interest rates. Liquidity is another concern, as the current ratio of 0.91 indicates potential difficulty covering short-term obligations without accessing external financing.
Operational risks include volatile profitability, as seen in the swing from a 30.3% net income margin in Q3 2025 to 11.1% in Q4 2025, partly due to one-time items. The company operates in a mature, capital-intensive, and highly competitive telecommunications market, which pressures pricing and requires continuous heavy investment. Furthermore, the stock's price near its 52-week high increases susceptibility to a pullback if growth expectations are not met.
FAQ
The key risks are financial: a high debt-to-equity ratio (1.57) and a low current ratio (0.91) indicating liquidity constraints. Operational risks include volatile profitability and intense competition in a mature market. Additionally, the stock's recent strong performance places it near its 52-week high, increasing vulnerability to a pullback.
The 12-month outlook suggests a base case trading range of $26 to $30, assuming the company meets the consensus EPS estimate of $3.43 and maintains its financial posture. A bull case to $33 is possible with multiple expansion and debt improvement, while a bear case could see a retreat to the $23-$26 range if fundamental risks materialize.
T appears undervalued based on traditional earnings multiples, with a trailing P/E of 8.1 and a forward P/E of 11.4, which are low relative to many sectors. This discount likely reflects its high leverage and the mature, competitive nature of the telecommunications industry. The valuation is attractive but justified by the associated risks.
T is a good buy primarily for income-focused investors seeking a ~4.6% dividend yield from a company generating substantial free cash flow ($19.4B). However, its high debt (debt-to-equity of 1.57) and the stock trading near its 52-week high limit near-term upside potential. It is less suitable for investors seeking high growth.
T is more suitable for long-term, income-oriented investment. The short-term outlook is clouded by the stock trading near its 52-week high and a lack of immediate catalysts for significant price movement. Long-term investors can benefit from the dividend while the company works to manage its debt load and stabilize cash flows.