Can AT&T See a Turnaround?

With shares of AT&T (NYSE:T) trading around $33, is T an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

AT&T is a provider of telecommunications services in the United States and worldwide. Services offered include wireless communications, local exchange services, and long-distance services. AT&T operates in four segments: Wireless, Wireline, Advertising Solutions, and Other. The communications products offered through AT&T’s segments reach audiences using just about every widely adopted medium: Internet, voice, television, and mobile. As consumers continue to adopt this technology, providers like AT&T stand to see rising profits.

AT&T is in the middle of many things.  The telecoms operator is reported to be expanding and upgrading its network in an ambitious project to compete effectively in the industry. The company is also selling assets as part of its consolidation efforts to avoid unnecessary burden while raising funds for future investments. As far as future investments are concerned, the company is looking at the opportunity in connected vehicle segment, where it is already in talks with Tesla Motors Inc (NASDAQ:TSLA) and Audi. Moreover, the company is said to be considering merger with the leading UK carrier Vodafone Group (NASDAQ:VOD) in an effort to capture the lucrative Europe telecom industry. If these investments are successful, there will be reasons for investors to celebrate. However, at present the stock lacks reliable growth opportunities. This explains why the stock’s performance in the year so far, and even in the last year has not been anything to be proud about.