Here's Why AT&T Stock (T) is Gaining Ahead of Q2 Results
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Since AT&T and Verizon compete in the same markets, wireless, broadband, and enterprise, Verizon's upbeat results suggest that AT&T may also be benefiting from similar trends, especially ahead of its own Q2 earnings release, due on Wednesday.
VZ's Q2 Snapshot
Verizon's Q2 revenue hit $34.5 billion, up 5.2% year-over-year, and its adjusted EPS of $1.22 rose 6.1%. Looking forward, the company raised its 2025 free cash flow and profit forecasts, citing strong demand for premium wireless plans and broadband bundles.
Also, Verizon's momentum suggests that consumer demand and pricing power remain intact, another positive sign for AT&T.
RBC Capital Optimistic Ahead of AT&T's Q2 Results
According to RBC Capital Markets, AT&T is expected to add more consumer wireless broadband users in Q2 compared to last year, which was impacted by changes in the Affordable Connectivity Program (ACP).
Also, the firm predicts around 900,000 total net additions across major carriers, including Verizon, AT&T, and T-Mobile (TMUS).
The research firm also believes that the extension of bonus depreciation from 2017 will give telecom companies a big boost in free cash flow. Analysts say this could lead to a 9% increase in cash flow estimates, with Charter (CHTR) gaining the most, followed by AT&T.
Is AT&T a Buy, Sell, or Hold?
Turning to Wall Street, T stock has a Strong Buy consensus rating based on 12 Buys and two Holds assigned in the last three months. At $30.71, the average AT&T price target implies a 12.1% upside potential.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Miami Herald
a day ago
- Miami Herald
T-Mobile announces free perks for internet customers
T-Mobile (TMUS) recently saw a spike in new broadband customers, as many have fled from cable companies that have been gradually increasing prices for internet services over the past year. A recent CNET survey found that 63% of U.S. adults saw the monthly price of their home internet service increase last year. On average, they paid $195 more for internet in 2024 than in 2023. Don't miss the move: Subscribe to TheStreet's free daily newsletter As consumers battle inflation and higher costs of living, many have explored fixed wireless access internet service, which T-Mobile, Verizon, and AT&T offer. This service provides internet access to remote or underserved areas at a price that's usually cheaper than traditional internet services. Related: T-Mobile launches a cheap new service amid customer struggles In T-Mobile's second-quarter earnings report for 2025, it revealed that the company added roughly 454,000 high-speed internet customers, which is 12% higher than the number it welcomed during the same quarter last year. T-Mobile ended the quarter with 7.3 million high-speed internet customers. As T-Mobile's 5G home internet grows in popularity, it recently made a bold move to lure more internet customers away from cable companies. The phone carrier has added more free perks to its new Amplified and All-in internet plans. Both plans launched in December last year with prices of $60 and $70, respectively, with autopay. Amplified now grants customers access to 24/7 tech support, which offers live video support for help with household smart devices such as thermostats, doorbells, etc., according to a recent T-Mobile press release. This was a perk that was previously only available for All-in internet customers. Related: Verizon discontinues free customer perk from phone plans This expanded perk from T-Mobile directly competes with Verizon, which recently began offering its customers 24/7 tech support in June. In addition, T-Mobile also added advanced cybersecurity to its Small Business Internet Amplified and All-In plans, which will help "block harmful sites, detect suspicious activity and keep connected devices safe from online threats." Customers can manage the feature through the T-Life app. As fixed wireless access internet becomes more of a threat in the telecom industry, cable giants Spectrum and Comcast collectively lost 343,000 internet customers during the second quarter of this year, while T-Mobile, AT&T, and Verizon collectively added about 932,000 new 5G home internet customers during the quarter. A recent survey from Cord Cutters News revealed that only 40.2% of consumers now rely on cable TV companies for their internet service, a significant decline from 45% in late 2024. Also, roughly 11% rely on 5G home internet, an increase from 8.4% just a year ago. During an earnings call last month, Comcast Chief Financial Officer Jason Armstrong said that the broadband industry is "competitive" and "remains intense." More Telecom News: Verizon's push to make switching harder for customers hits a snagT-Mobile announces generous offer for conflicted customersAmazon pulls the plug on a free service for customers "Fixed wireless remains very active in the marketplace," said Armstrong. "Fiber competitors continue to build more capacity." To combat this growing trend, he said that Comcast has "realigned" its pricing strategy by lowering "everyday pricing," and moving local offers "to a consistent national pricing structure." It also recently introduced one-year and five-year price lock guarantees to its internet plans without contracts. On the other hand, Spectrum, which is operated by Charter Communications, is focused on sharpening its value pitch to customers by clarifying how much money they can save by bundling their phone and internet services. "Going back to customers very clearly, both in marketing and at the time of sale, and at the time of retention, and saying the only reason that you can have a cell phone internet product at that price is because they're forcing you to pay $60.70 per mobile line," said Charter CEO Chris Winfrey during an earnings call last month. "And when you think about what is on your bill with T-Mobile or Verizon 5G home Internet, the reality is, it's dramatically more expensive than what you would pay to Spectrum for an internet mobile product." Related: Spectrum suffers major loss as customers pull the plug on service The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
2 days ago
- Yahoo
AT&T (T) Explores Sale of Mexico Unit for Over US$2 Billion
AT&T recently saw a slight increase in its stock price, moving up 2.37% over the last week amid rumors of potential M&A activity and ongoing market developments. Reports of the company exploring the sale of its Mexico unit for over $2 billion coincided with a period in which major indexes, such as the Dow Jones and Nasdaq, saw steady gains. Additionally, the positive response to AT&T's class-action settlement and new product launches mirrored the broader market recovery following previous downturns. Overall, these corporate developments align with the market's bullish trend over the past week. We've identified 3 risks for AT&T that you should be aware of. Trump's oil boom is here — pipelines are primed to profit. Discover the 22 US stocks riding the wave. The potential sale of AT&T's Mexico unit and recent positive developments, such as class-action settlements and new product launches, are significant for investors focusing on shareholder returns. Such news could support revenue forecasts by enhancing market confidence, possibly elevating earnings estimates. Over the past three years, AT&T's total return, including dividends, increased by 85.38%. This contrasts with a more recent comparison where AT&T's one-year return exceeded the broader US Telecom industry, which returned 23.9%. The current share price of US$28.06 reflects investor sentiment reacting to these recent changes. However, it still represents an approximate 8.99% discount to the consensus price target of US$30.58. Positive reception of the potential M&A activity could further narrow this gap if investors anticipate stronger future earnings and improved valuation metrics. The ongoing focus on upgrading to 5G and fiber infrastructure, despite short-term cost pressures, aligns with longer-term forecasts of revenue and earnings growth. Such actions might bolster AT&T's competitive positioning, potentially impacting future financial returns positively. Our expertly prepared valuation report AT&T implies its share price may be lower than expected. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include T. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
CNET
2 days ago
- CNET
Get Fast Home Internet Starting at Just $35 With T-Mobile
Back-to-school season is starting to pick up and many of us are shopping for the usual backpacks, binders and pencils. But what about things you'll need at home? A reliable internet connection at home is an absolute necessity. With more and more schoolwork being done online, the worst thing would be finishing an assignment only for your internet to crash. Thankfully, T-Mobile has pretty strong and reliable internet at great prices. Hey, did you know? CNET Deals texts are free, easy and save you money. Anyone can enjoy discounted T-Mobile home internet. Plans are currently available at a starting price of just $35 for existing T-Mobile customers. And if you don't already have a T-Mobile voice plan, there are still some offers you can take advantage of. The Rely plan is normally $55, but it's $35 if you already have a T-Mobile voice line. If not, you can enjoy a $5 autopay discount bringing it to $50 a month. This plan includes a five-year price lock in guarantee, unlimited data, no contract, high performance 5G Gateway and standard security. The Amplified plan is $65. However if you already have a T-Mobile voice line, you'll pay just $45. If not, you can enjoy a $5 autopay discount bringing it to $60 a month. This plan has everything the Rely plan does, as well as the addition of advanced cyber security and 24/7 tech support. The highest tier, the All-In plan, goes for $75. But if you have a voice line, you can get it for $55. If not, you can enjoy a $5 autopay discount bringing it to $70 a month. The plan includes everything the Rely and Amplified plans do, along with streaming perks and Wi-Fi Mesh access points. You'll also have to pay for any applicable taxes and fees on top of your monthly rate. Why this deal matters Internet plans don't come cheap and with it being an essential in our homes, it's a monthly cost we can't go without. It's also something we can't really skimp out on either, especially if you work or study from home. These T-Mobile plans start as low as $35 and the rates lock in for five years. So, you won't have to worry about your bill increasing soon.
