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Is AT&T Attractive at Its Current Price?

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Jun. 19 2019, Updated 12:17 p.m. ET

AT&T’s stock returns

AT&T (T) stock has risen close to 5.6% since the beginning of June. On June 17, AT&T closed at $32.30, which was 0.2% lower than its previous closing price, 5.8% lower than its 52-week high of $34.30, and 20.5% higher than its 52-week low of $26.80. The company’s market cap is $236.8 billion.

Based on AT&T’s closing price on June 17, the company has reported returns of 1.2% in the last five trading days, 1.6% in the trailing one-month period, and -2.6% in the trailing 12-month period. The company has reported returns of 13.2% since the beginning of 2019.

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Is AT&T stock trading at an attractive valuation?

AT&T stock is trading at a forward PE ratio of 9.02x. The company’s earnings are estimated to rise 1.1% in 2019 and 2.0% in 2020. AT&T’s earnings are also expected to rise at a compound annual growth rate of 1.8% in the next five years. The company’s sales might rise 2.3% annually over the next three years. AT&T stock looks overvalued considering the PE ratio.

Analysts’ views

Among the 29 analysts tracking AT&T, 14 recommended a “buy,” 13 recommended a “hold,” and two recommended a “sell.” The analysts have an average target price of $33.50, which indicates that the stock has an upside potential of 3.7% from the current levels.

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