Dallas-headquartered AT&T Inc. (T) is the second-largest wireless service provider in North America and a major global communications carrier, with a market cap of $157.9 billion. The company operates through its Communications and Latin America segments, providing a diverse array of services, including wireless, local and long-distance exchange, data and broadband, internet, wholesale, and cloud-based solutions.

Shares of this large-cap telecom giant have outperformed the broader market considerably over the past year. T has gained 47.7% over this time frame, while the S&P 500 Index ($SPX) has rallied 36.9%. In 2024, T stock has gained 34.3%, while the SPX is up 19.6% on a YTD basis.

However, T lags behind the SPDR S&P Telecom ETF’s (XTL) 56.4% returns over the past year. Nevertheless, the ETF’s 26.6% YTD returns trails behind T’s gains over the same time frame.

On Oct. 23, T announced its Q3 earnings, and its shares rose 4.6%. Its adjusted earnings were 60 cents per share, beating Wall Street’s expectation of 59 cents. However, its $30.2 billion revenue missed the forecast of $30.6 billion. The company projects full-year earnings between $2.15 and $2.25 per share.

However, for the current fiscal year ending in December, T is projected to report an EPS of $2.22 on a diluted basis, reflecting a decline of 7.9% from 2023. The company’s earnings surprise history is mixed. It exceeded estimates in two of the last four quarters while missing on the other two occasions. 

Among the 25 analysts covering T stock, the consensus rating is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings, one “Moderate Buy,” 11 “Holds,” and one “Strong Sell.”

This configuration is slightly more bullish than two months ago, with 11 analysts suggesting a “Strong Buy.” 

On Oct. 24, RBC Capital analyst Jonathan Atkin reiterated AT&T with a “Sector Perform” and maintained a $22 price target.

The mean price target of $23.51 represents a 4.3% premium to T’s current price levels. Additionally, the highest target on the Street, set at $30, suggests an upside potential of 33.1%.

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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.