T Should I Buy
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AT&T Inc. is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown some positive financial performance and analyst support, the technical indicators are neutral, and the stock is in a pre-market decline. The lack of significant trading signals and mixed catalysts suggest it is better to hold off on buying until clearer positive trends emerge.
The MACD is below zero and negatively contracting, indicating weak momentum. RSI is neutral at 54.467, and moving averages are converging, suggesting no clear trend. The stock is trading near its pivot level of 25.922, with resistance at 26.615 and support at 25.229. Overall, technical indicators are neutral.
Q1 2026 revenue increased by 2.87% YoY, surpassing analyst expectations.
Strong cash flow and customer growth reported in Q
Analysts from Morgan Stanley and KeyBanc maintain positive ratings with price targets of $30 and $36, respectively, citing AT&T's strong position in fiber and connectivity services.
Pre-market price decline of -0.79%.
Net income and EPS dropped significantly YoY in Q1
Concerns over disappointing wireless service revenue despite overall revenue growth.
Mixed analyst ratings with some downgrades and lower price targets, such as BNP Paribas downgrading to Neutral with a $28 target.
In Q1 2026, AT&T reported a revenue increase of 2.87% YoY to $31.5 billion, but net income dropped by -13.70% YoY to $3.79 billion. EPS also declined by -11.48% YoY to $0.54. Gross margin improved slightly to 44.35%, up 1.35% YoY. While revenue growth is promising, profitability metrics show weakness.
Analysts have mixed views. Positive ratings include Morgan Stanley's Overweight rating with a $30 price target and KeyBanc's Overweight rating with a $36 target. However, BNP Paribas downgraded the stock to Neutral with a $28 target, and Scotiabank lowered its price target to $31 from $31.50, maintaining a Sector Perform rating.
