AT&T (T) had an impressive first quarter with increased revenue, while management is extremely confident about the rest of 2012 and long-term prosperity. Despite the increasing growth of Verizon (VZ) and inability to acquire T-Mobile (DTEGY.PK), AT&T is clearly the largest telecom provider in the country and shows no sign of slowing down. Verizon’s stock price increased by almost 7% since last year, while AT&T’s stock price is close behind increasing at almost 5% over the past 12 months.
The current stock price and 52-week price range does not reflect the true value of this telecom tycoon. AT&T is a dependable long-term investment that will grow as the telecommunications industry and economy continue to develop. The range for the stock price over the past year has been very stable between $27 and $32, its beta is typically less than .5, indicating that this is a reliable stock to invest in for long-term growth with minimal volatility. AT&T’s price-to-earnings ratio is only around seven points higher than Verizon while the market cap is approximately 190 billion, which is nearly double Verizon’s cap of over 113 billion. Verizon shows high growth potential but AT&T shows no signs of slowing down or losing its dominance in various markets.
There are a number of factors indicating that AT&T will continue to lead its competition in the industry for at least a few more decades if not longer. AT&T did better than most analysts’ projections, earning more than $3.5 billion in profit for the first quarter of 2012 in comparison with around $3.4 billion last year.To continue reading, click here.
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