AT&T Trading Near 52-Week Lows, Possible Value Opportunity
AT&T stock has declined 17% this year and is trading near 52-week lows due to concerns about SpaceX's Starlink disrupting its business. The company's fundamentals remain strong, with low single-digit revenue growth expected, and the stock offers a low P/E ratio and 5.4% dividend yield. This may make the stock a value option for long-term investors before the company reports Q2 earnings on July 22.
AT&T T shares are down about 17% year-to-date and trading near 52-week lows, with much of the pressure tied to investor concern over SpaceX's Starlink expanding in the connectivity market .
The company's underlying fundamentals have not deteriorated at the same pace as the stock: AT&T continues to project low single-digit revenue growth, and the shares now trade at a price-to-earnings ratio near 7 with a 5.4% dividend yield, both well below the stock's own historical averages .
AT&T reports second-quarter earnings on July 22, which should offer a clearer read on whether the Starlink competitive threat is showing up in subscriber and revenue trends or whether the sell-off has outrun the fundamentals. Either way, a widening gap between a depressed valuation and stable core financials is worth watching heading into that print.
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