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AT&T Stock’s Technicals Indicate Weak Investor Sentiment

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Moving averages

On November 23, AT&T (T) was trading at $29.36 per share, which was ~8.2% below its 50-day moving average. Meanwhile, T-Mobile (TMUS) and Sprint (S) were trading ~1.8% and ~2.7% below their 50-day moving averages, respectively. Verizon (VZ) was trading ~4.9% above its 50-day moving average on the same day. AT&T stock was ~3.1% below its 20-day moving average and ~8.5% below its 100-day moving average. 

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AT&T’s scale

As of November 23, AT&T was the second-largest wireless service provider with a market capitalization of $213.7 billion. Meanwhile, Verizon’s, T-Mobile’s, and Sprint’s market caps were $242.3 billion, $56.9 billion, and $25.0 billion, respectively. Market capitalization represents a company’s market value, which is its shares outstanding multiplied by its stock price.

Relative strength index

As of November 23, AT&T had a 14-day RSI (relative strength index) score of 35. A stock’s 14-day RSI score is measured on a scale of zero to 100. Technical analysts consider a stock to be in the “oversold” zone when its 14-day RSI score drops below 30. A stock is considered to be in the “overbought” zone when its 14-day RSI score rises above 70. A stock trading between a 14-day RSI level of 30 and 70 signifies balanced trading activity. Meanwhile, T-Mobile’s, Sprint’s, and Verizon’s 14-day RSI scores are 46, 47, and 57, respectively.

Revenue and EPS forecast

Analysts expect AT&T’s sales and adjusted EPS to be $171.1 billion and $3.52 in fiscal 2018, and $185.4 billion and $3.59 in fiscal 2019. The telecom company reported sales of $160.8 billion and adjusted EPS of $3.05 in fiscal 2017.

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