Section 1: Company Fundamentals
1.1 Company Overview:
AT&T Inc. (NYSE: T) is a holding company. The Company is a provider of telecommunications and technology services globally. The Company operates through two segments, namely Communications and Latin America. The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the United States and globally.
Kalkine’s US Inflation Report covers the Company Overview, Key positives & negatives, Investment summary, Business updates and insights into company recent financial results, Key Risks & Outlook, Price performance and technical summary, Target Price, and Recommendation on the stock.
Stock Performance:
- The stock has corrected by 20.63% in the last six months as well as 28.87% in the last year.
- The stock is leaning towards the lower band of its 52-week range of USD 21.53 and 52-week low price of USD 14.46.
- The price is currently trading below both its short-term (50-day) SMA and long-term (200-day) SMA, with the current oversold RSI of 20.70, with the expectation of a trend reversal from the current levels or from 52-week low levels.
1.2 Summary Table
1.3 The Key Positives, Negatives and Investment Summary:
1.4 Key Metrics:
AT&T Inc. has exhibited commendable proficiency in cost management throughout its operations, leading to superior profitability margins in comparison to industry peers. This achievement can be attributed to the company's efficient operational practices implemented across various levels. Moreover, AT&T has observed notable advancements in generating free cash flow during the first quarter of fiscal year 2023. This positive development can be attributed to the heightened efficacy demonstrated by the company in all operational facets, thereby fortifying its cash flow position. AT&T's adeptness in cost management and the consequent attainment of higher profitability margins have played a significant role in bolstering its free cash flow performance. These achievements underscore the company's unwavering commitment to maximizing operational efficiency and securing a robust financial standing.
Section 2: AT&T Inc (“Buy” at the current market price of USD 15.20, as of May 26, 2023, at 06:35 am PDT)
2.1 Company Details
2.2 Technical Guidance and Stock Recommendation
Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is May 26, 2023. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Note 4: The report publishing date is as per the Pacific Time Zone.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.