AT&T (NYSE:T) stock is a smart investment for anyone seeking exposure to 5G stocks in 2023, along with strong value and a generous dividend yield. It also has a ‘Perfect 10’ Smart Score on TipRanks, truly making it a “smart” investment. Further, AT&T excels in multiple key areas, including blogger sentiment, hedge fund trading activity, and of course, the company’s stellar track record of quarterly EPS beats. I am bullish on AT&T stock as it checks all of the right boxes for investors who are averse to volatility but still want growth in a tech-focused business.
AT&T is a telecommunications giant with a vast global wireless connectivity network. From phones to computers and fax machines, whatever devices you’re using today, AT&T has a way to get you connected. Therefore, T stock is practically a tech stock even if people pigeonhole it as a telecom investment.
Although AT&T stock hasn’t done much in the past few years, don’t be fooled by the price action. Just about any investor can take a small to moderate allocation in T stock and likely sleep soundly at night. As long as the 5G wireless connectivity market keeps growing, AT&T should continue to deliver excellent value to its shareholders.
AT&T is a Contender for the Title of Global 5G King
Believe it or not, the global 5G services market’s value reached $60.61 billion last year. Furthermore, this market is expected to accelerate quickly, at a compound annual growth rate (CAGR) of 59.4% from this year through 2030. Without a doubt, AT&T is poised to capture a slice of that fiscal pie, and the company is aggressively earning the title of global 5G king.
In fact, AT&T is considering selling its cybersecurity division, which would bring a capital infusion to the company but would also enable AT&T to focus more on 5G. This would be a brilliant move for the company, which has already established a powerful market presence in wireless connectivity. For example, AT&T achieved 2.9 million postpaid phone net adds in the 5G wireless category last year.
Moreover, AT&T spun off its entertainment/streaming business, Warner Bros. Discovery (NASDAQ:WBD). Again, this allows AT&T to concentrate on its 5G business. AT&T Chief Financial Officer Pascal Desroches assured investors that the wireless market environment is “still really healthy” and that wireless customers are still “very resilient.” Hence, there’s no need to worry about elevated inflation and recession fears destroying AT&T’s 5G business in 2023.
Also, here are some amazing statistics for you. First, the company has expanded its 5G network to reach 290 million people in nearly 24,000 cities and towns in the U.S. Furthermore, at the end of 2022, more than 150 million people had access to AT&T’s mid-band 5G spectrum; this was more than double the company’s original end-of-year 2022 target. Additionally, in 2022, AT&T was able to double the number of venues and airports offering its 5G+ service.
Consider AT&T Stock for Value, Dividends, and More
You can choose AT&T stock for its 5G market exposure, but there are plenty of other reasons to own the stock now. Whether you’re looking for good value, generous dividends, or practically anything else a sensible investor could want, T stock looks attractive.
Here are a couple of stats that should interest value-focused investors. AT&T’s trailing 12-month (TTM) non-GAAP P/E ratio of 6.96x compares favorably to the sector median of 14.1x. Moreover, the company’s TTM price-to-book (P/B) ratio of 1.38x beats the sector median of 1.72x, while AT&T’s TTM price-to-sales (P/S) ratio of 1.12x is better than the sector median of 1.27x.
Also, safety-minded investors should be glad to know that AT&T stock has a low beta of 0.77, which implies that the stock isn’t highly volatile. As well, if income is your focus, then there’s good news for you, as AT&T offers a generous forward annual dividend yield of 5.9%.
Is T Stock a Buy, According to Analysts?
Turning to Wall Street, T stock comes in as a Moderate Buy based on four Buys and eight Hold ratings. The average AT&T stock price target is $22.11, implying 18.1% upside potential.
Conclusion: Should You Consider AT&T Stock?
In case you haven’t figured it out by now, I’m strongly bullish on AT&T stock and feel that practically any investor ought to consider it. AT&T is slimmer and more focused without Warner Bros. Discovery and can now focus on advancing the company’s already vast 5G connectivity network.
So, feel free to conduct your due diligence on T stock, as you’re likely to be highly impressed. Whether you’re in the market for value, yield, low volatility, or growth potential in leading-edge technology, AT&T is virtually unbeatable.