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What Analysts Recommend for AT&T and Verizon This Month

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Stock price movements

On February 11, AT&T (T) stock closed at $29.71, 0.5% higher than its previous closing price, 10.9% higher than its 52-week low of $26.80, and 21.4% lower than its 52-week high of $37.81. Its market cap was $216.2 billion, and its trailing-12-month and forward PE ratios were 10.36x and 8.27x, respectively.

After its fourth-quarter earnings release, AT&T stock fell 3.2% from $30.70 on January 29 to $29.71 on February 11. The company missed analysts’ consensus revenue estimate by $502 million and met analysts’ consensus adjusted EPS estimate of $0.86 in the fourth quarter.

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On February 11, Verizon (VZ) stock closed at $54.05, 0.2% higher than its previous closing price, 17.3% higher than its 52-week low of $46.09, and 12.2% lower than its 52-week high of $61.58. Its market cap was $223.3 billion, and its trailing-12-month and forward PE ratios were 14.38x and 11.55x, respectively.

Verizon missed analysts’ consensus revenue estimate by $163 million and surpassed analysts’ consensus adjusted EPS estimate by $0.03 to reach $1.12 in the fourth quarter.

AT&T is trading at a lower trailing PE ratio and a lower forward PE ratio than Verizon.

Analysts’ recommendations and target prices

Of the 31 analysts covering AT&T stock, 15 have given it “buys,” 14 have given it “holds,” and two have given it “sells.” Analysts’ 12-month target price on the stock is $33.76, 13.6% higher than its closing price on February 11. The highest target price estimate for the company is $43, and the lowest is $22.

Of the 30 analysts covering Verizon stock, 12 have given it “buys,” and the remaining 18 have given it “holds.” None have recommended “sells” on the stock. Analysts’ 12-month target price on the stock is $59.14, 9.4% higher than its closing price on February 11. The highest target price estimate for the company is $65, and the lowest is $50.

Meanwhile, T-Mobile (TMUS) and Sprint (S) have average analyst target prices of $81.10 and $6.14, respectively. These targets imply 12-month returns of 18.5% and 3.2%, respectively.

Next, we’ll look at AT&T’s and Verizon’s revenue growth trajectories.

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