Assessing AT&T (T) Valuation After Recent Short-Term Share Price Weakness

AT&T (T) has been drawing fresh attention as investors weigh its current share price of $24.71 against recent performance, including a 1 day gain and negative moves over the past month and the past 3 months.

See our latest analysis for AT&T.

That 1 day share price gain comes after a softer few months. AT&T’s year to date share price return is in positive territory, and its 1 year total shareholder return of 16.28% and 3 year total shareholder return of 48.09% suggest longer term momentum has been stronger than recent trading implies.

If AT&T’s recent moves have you reassessing your watchlist, this could be a good moment to broaden your search with fast growing stocks with high insider ownership.

With AT&T trading at $24.71, an implied 22% gap to one set of analyst targets, and an indicated intrinsic discount of around 55%, you have to ask whether this is a genuine value opportunity or whether the market is already pricing in future growth.

Most Popular Narrative: 20.3% Undervalued

With AT&T closing at $24.71 against a narrative fair value of $30.99, the valuation gap hinges on a specific earnings and margin path.

Analysts expect earnings to reach $17.0 billion (and earnings per share of $2.57) by about September 2028, up from $12.7 billion today. The analysts are largely in agreement about this estimate.

Read the complete narrative.

If you want to see what is really backing that higher fair value, focus on revenue creep, margin shifts, and a tighter share count, which sit at the core of this narrative. This framing highlights how those pieces fit together and what kind of earnings multiple they imply on AT&T in a few years.

Result: Fair Value of $30.99 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this narrative could be challenged if competition lifts churn and pricing pressure, or if heavier fiber and network spending fails to deliver the expected returns.

Find out about the key risks to this AT&T narrative.

Build Your Own AT&T Narrative

If you look at the numbers and come to a different view, or just prefer to piece things together yourself, you can build a custom narrative in a few minutes with Do it your way.

A great starting point for your AT&T research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.

Looking for more investment ideas?

Once you have a view on AT&T, do not stop there, widening your opportunity set can help you spot setups that better match your goals.

• Target higher income potential by scanning these 14 dividend stocks with yields > 3% that might suit investors who want yield to play a bigger role in returns.
• Hunt for mispriced opportunities by checking these 878 undervalued stocks based on cash flows that could line up with your view on price versus fundamentals.
• Get ahead of emerging themes by reviewing these 79 cryptocurrency and blockchain stocks that tie traditional markets to digital assets.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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