Shareholder returns and stock trends
AT&T (T) stock fell ~3.4% on October 11 and closed at $31.75 as part of the significant sell-off in the tech sector. Based on that closing price, AT&T has a market capitalization of ~$230.6 billion—the largest among the major US wireless service operators.
Year-to-date, AT&T’s stock price has fallen 18.3%. The stock has generated a return of -2.8% in the trailing-one-month period and -16.9% in the trailing-12-month period. In comparison, Verizon (VZ) and T-Mobile (TMUS) have seen their stock prices rise 9.2% and 8.2%, respectively, in the trailing-12-month period. Meanwhile, Sprint’s (S) stock price fell 13.6% in the trailing-12-month period.
Of the 31 analysts covering AT&T, 11 rated the stock as a “buy.” Three rated it as a “sell,” and 17 rated it as a “hold.” Analysts have set a target price of $35.48 for AT&T stock and a median consensus estimate of $36.00. AT&T was trading at $31.75 on October 11, which is a 13.4% discount to its consensus median target estimate.
Wall Street analysts’ estimates
Wall Street analysts expect AT&T to report an ~7.5% rise in revenues to $172.8 billion in 2018 compared to $160.8 billion in 2017. Its adjusted earnings per share are expected to be $3.50 in 2018 compared to $3.05 in 2017.
The sell-off of AT&T stock in October saw the stock fall below its 50-day and 100-day moving averages, which indicates a bearish sentiment in the company.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.