AT&T soars to 5-year high, but Is now the most overbought stock in the S&P 500
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 03 2025
0mins
Should l Buy T?
Source: SeekingAlpha
AT&T Stock Performance: AT&T shares are currently the most overbought in the S&P 500 with an RSI of 83.25, indicating strong buying momentum and a potential price exhaustion as the stock reaches a five-year high of $27.27 following positive Q4 earnings results.
Investment Opportunities: Investors seeking exposure to AT&T can consider various exchange-traded funds (ETFs) that have significant allocations towards the stock, amidst its notable performance ranking within the S&P 500 for the year.
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Analyst Views on T
Wall Street analysts forecast T stock price to fall
15 Analyst Rating
8 Buy
5 Hold
2 Sell
Moderate Buy
Current: 28.760
Low
20.00
Averages
28.27
High
33.00
Current: 28.760
Low
20.00
Averages
28.27
High
33.00
About T
AT&T Inc. is a holding company. The Company is a provider of telecommunications and technology services globally. The Company’s segments include Communications and Latin America. The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the United States and businesses globally. The business units of the Communication segment include Mobility, Business Wireline, and Consumer Wireline. Mobility provides nationwide wireless service and equipment. Business Wireline provides advanced Ethernet-based fiber services, Internet Protocol (IP) Voice and managed professional services, as well as legacy voice and data services and related equipment, to business customers. Consumer Wireline provides broadband services, including fiber connections. Consumer Wireline provides legacy telephony voice communication services. The Latin America segment provides wireless services and equipment in Mexico.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Attractive Valuation: Verizon currently trades at a trailing P/E of 12, well below rival AT&T's over 12, and offers a 5.7% dividend yield, making it an appealing choice for investors amid economic uncertainty, potentially driving further stock price increases.
- Future Growth Potential: Despite the recent stock surge, Verizon is still down 11% over the past five years, indicating room for further gains, and with strong profit forecasts, investor sentiment remains optimistic about its long-term growth prospects.
See More
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- Optimistic Future Outlook: The company’s strong profit and cash flow forecast exceeded analysts' expectations, reflecting progress in its growth strategy and boosting investor confidence, which may lead to continued stock price appreciation.
See More
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- Cemex Upgraded to Overweight: Morgan Stanley upgrades Cemex from equal weight to overweight, highlighting the company's leading position in margin protection and a robust balance sheet that supports future growth prospects.
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See More
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- Increased Promotions: The promotional activities among the Big 3 U.S. carriers—AT&T, Verizon, and T-Mobile—have intensified heading into Q2 2026, reflecting heightened competition in the postpaid market as many subscribers exit 36-month financing plans, reducing switching barriers.
- Consumer Value Index: Counterpoint Research's promotional index, scored from 0 to 100, quantifies consumer-facing value, with higher scores indicating increased competitiveness in both postpaid and prepaid segments, driving fierce competition among carriers.
- Enhanced Device Subsidies: The launch of Samsung's Galaxy S26 series has prompted carriers to boost subsidies to maintain competitive offers, with T-Mobile's promotion for the S26 Ultra achieving a top index score of 100, demonstrating a willingness to increase subsidies in response to higher device prices.
- Apple's Pricing Strategy: Apple launched the iPhone 17e at flat pricing year-over-year, with a $100 price cut for the 512GB variant; however, AT&T's unchanged offer led to a decline in its relative competitiveness, while Verizon and T-Mobile enhanced their market position through non-subsidy strategies.
See More
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- Costco's Market Resilience: Costco has only failed to deliver annual revenue growth once in the past 33 years, and even during the 2009 recession, its revenue dipped only 1.5%, demonstrating its strong resilience during economic turmoil, making it attractive for investors seeking stability.
- AT&T's Stable Returns: As one of the largest wireless carriers in the U.S., AT&T offers a high dividend yield of 4%, and despite experiencing revenue declines in four of the past six years, analysts expect positive growth to continue over the next two years, highlighting its appeal during market fluctuations.
- Coca-Cola's Dividend King Status: Coca-Cola is renowned for its 64 consecutive years of dividend increases, earning it the title of 'Dividend King', and its high-margin business model allows it to attract consumers even during economic downturns, ensuring stable cash flow and investor confidence.
- Need for Defensive Investments: Given the increasing economic uncertainty, investors should consider incorporating defensive stocks like Costco, AT&T, and Coca-Cola into their portfolios to mitigate risks associated with market volatility and secure long-term returns.
See More
