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.

What Is AT&T’s Outlook after the Major Market Sell-Off?

Analysts’ recommendations

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.

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WRITTEN BY Mayur Sontakke, CFA, FRM

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