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 some positive aspects such as its fiber expansion and stable financials, the current technical indicators, options sentiment, and lack of strong trading signals suggest a wait-and-see approach is more prudent.
The MACD is negative and expanding, indicating bearish momentum. The RSI is neutral at 55.408, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near its pivot point of 28.272, with resistance at 28.906 and support at 27.638.
Fiber expansion provides a long-term growth trajectory and insulates the wireless segment from competitive pressures. Analysts highlight potential free cash flow expansion into 2028.
The company faces heightened competitive dynamics in the telecommunications sector, with price wars, slowing subscriber growth, and weaker ARPU. Recent financials show a decline in net income (-6.92% YoY) and EPS (-5.36% YoY).
In Q4 2025, revenue increased by 3.62% YoY to $33.47 billion, but net income dropped by 6.92% YoY to $3.75 billion. EPS decreased by 5.36% YoY to 0.53, while gross margin improved by 2.51% YoY to 40.4%.
Analysts are mixed but leaning positive. RBC Capital raised the price target to $31, citing long-term growth potential. Deutsche Bank raised the price target to $33, highlighting strong Q4 results. However, firms like Oppenheimer and Wells Fargo lowered their price targets due to competitive pressures and slowing growth in the wireless segment.
