(T) AT&T - Ratings and Ratios

AT&T Inc. is a global telecommunications and technology services provider, operating through two primary segments: Communications and Latin America. The Communications segment is the backbone of the companys operations, offering a wide range of services including wireless voice and data communications, handset sales, and various internet and broadband services to consumers, businesses, and governmental customers. The companys extensive service portfolio includes AT&T Dedicated Internet, fiber ethernet, and broadband services, as well as legacy telephony and VoIP services. The brand operates under multiple names, including AT&T, AT&T Business, Cricket, and AT&T Fiber, among others, catering to diverse customer needs.

The Latin America segment, while smaller, is significant in the regional telecommunications landscape, particularly in Mexico, where it offers postpaid and prepaid wireless services under the AT&T and Unefon brand names. The companys history dates back to 1983 when it was incorporated, and it has undergone significant transformations, including a name change from SBC Communications Inc. to AT&T Inc. in 2005, reflecting its evolution and expansion in the telecommunications industry.

From a technical analysis perspective, the stock has shown resilience, with a current price of $27.80, hovering above its 20-day and 50-day Simple Moving Averages (SMA20 and SMA50) of $27.48 and $27.28, respectively. This indicates a potential short-term bullish trend. The 200-day SMA stands at $23.61, suggesting a longer-term uptrend. The Average True Range (ATR) is 0.61, or 2.21%, indicating moderate volatility. Given these technical indicators, a potential forecast could involve a continued upward trajectory, with support levels at $27.5, $26.1, and $23.3, serving as crucial buffers against downward pressure.

Fundamentally, AT&T Inc. has a market capitalization of $200.18 billion, with a Price-to-Earnings (P/E) ratio of 16.85 and a forward P/E of 13.35, suggesting that the stock might be undervalued relative to its future earnings potential. The Return on Equity (RoE) stands at 11.04%, indicating a decent return for shareholders. Combining these fundamental data points with the technical analysis, a forecast could involve a gradual increase in stock price as the company continues to leverage its diversified service offerings and expand its customer base, potentially driving earnings growth and, consequently, a higher stock price. A potential target could be the 52-week high of $28.30, with a stop-loss around the support level of $26.1 to mitigate potential downside risks.