AT&T (T, $25.30) shares at decade low, amid shift to telecom and fall in payout ratio
AT&T shares fell to the lowest level in more than a decade, amid the company’s shift in focus from media assets to telecoms and lower payout ratios ahead of its third quarter earnings.
AT&T has sold key media assets, including DirecTV, and planned the $43 billion merger of its media division with Discovery. It is focusing on becoming a purely telecoms group.
The company announced this spring that its dividend payout ratio, which was around 63% in the first quarter, will be "re-sized" to reflect the distribution of WarnerMedia assets into a new company. The remaining AT&T assets will target a dividend payout ratio of between 40% and 43%, based on anticipated free cash flow of around $20 billion.
AT&T will publish its third quarter earnings on October 21. Analysts are currently expecting adjusted EPS of 78 cents on revenues of $39.45 billion.
Aroon Indicator for T shows an upward move is likely
T's Aroon Indicator triggered a bullish signal on May 02, 2022. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 201 similar instances where the Aroon Indicator showed a similar pattern. In 123 of the 201 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at 61%.
Current price $21.31 is above $20.54 the highest resistance line found by A.I. Throughout the month of 04/25/22 - 05/25/22, the price experienced a +9% Uptrend. During the week of 05/18/22 - 05/25/22, the stock enjoyed a +5% Uptrend growth.
The Momentum Indicator moved above the 0 level on May 06, 2022. You may want to consider a long position or call options on T as a result. In 42 of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 52%.
The Moving Average Convergence Divergence (MACD) for T just turned positive on May 17, 2022. Looking at past instances where T's MACD turned positive, the stock continued to rise in 25 of 54 cases over the following month. The odds of a continued upward trend are 46%.
Following a +2.70% 3-day Advance, the price is estimated to grow further. Considering data from situations where T advanced for three days, in 157 of 329 cases, the price rose further within the following month. The odds of a continued upward trend are 48%.
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Indicator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where T declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 45%.
T broke above its upper Bollinger Band on May 24, 2022. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 82%. During the last month, the daily ratio of advancing to declining volumes was 2.16 to 1.
The Tickeron Valuation Rating of 6 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.902) is normal, around the industry mean (4.078). P/E Ratio (8.913) is within average values for comparable stocks, (153.476). Projected Growth (PEG Ratio) (2.602) is also within normal values, averaging (4.886). Dividend Yield (0.086) settles around the average of (0.054) among similar stocks. P/S Ratio (0.943) is also within normal values, averaging (7.124).
The Tickeron SMR rating for this company is 19 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 34 (best 1 - 100 worst), indicating steady price growth. T’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 86 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. T’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is 99 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Wireless Telecom includes companies that sell wireless antenna or satellite-based communication services. This is the fastest-growing area in communications, as more and more communication and computing happen on mobile devices and cloud-based platforms. Wireless telecom is a key industry for global connectivity, and has even further room for growth in emerging markets and in rural parts of developed nations. People’s growing need for speed in data connectivity, higher resolution, and smoother video streaming and multimedia applications should drive growth and competition within this segment. T-Mobile US, Inc., Vodafone Group, and Sprint Corporation are some major providers of wireless telecom.
The average market capitalization across the Wireless Telecommunications Industry is 14.9B. The market cap for tickers in the group ranges from 9.7K to 12.4T. LNETF holds the highest valuation in this group at 12.4T. The lowest valued company is IGLDF at 9.7K.
The average weekly price growth across all stocks in the Wireless Telecommunications Industry was -0.58%. For the same Industry, the average monthly price growth was -3.33%, and the average quarterly price growth was -8.49%. CHWRF experienced the highest price growth at 33.33%, while CVST experienced the biggest fall at -46.41%.
The average weekly volume growth across all stocks in the Wireless Telecommunications Industry was 4.85%. For the same stocks of the Industry, the average monthly volume growth was -19.95% and the average quarterly volume growth was 32.03%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Positive Outlook today, backed by the BollingerBands Indicator. Tickeron has a positive outlook on this group and predicts a further increase by more than 4.00% within the next month with a likelihood of 50%. During the last month, the daily ratio of advancing to declining volumes was 1.41 to 1.
35 stocks in the group of tickers exhibit a similar positive trend based on the RSI indicator with an average likelihood of 71%.
The most notable companies in this group are Verizon Communications (NYSE:VZ), AT&T (NYSE:T), Lumen Technologies (NYSE:LUMN).
The average market capitalization across the group is 18B. The market cap for tickers in the group ranges from 44.2K to 215.2B. VZ holds the highest valuation in this group at 215.2B. The lowest valued company is FUIG at 44.2K.
The average weekly price growth across all stocks in the group was 0.68%. For the same group, the average monthly price growth was -6.19%, and the average quarterly price growth was -10%. VOD experienced the highest price growth at 13.43%, while MICCF experienced the biggest fall at -29.25%.
- 5/25/22 7:32 AM: Vodafone Group (VODPF, $1.63) was a top weekly gainer, with a +5.38% jump
- 5/24/22 7:00 AM: Vonage Holdings (VG, $19.59) was a top weekly gainer, with a +6.01% jump
- 5/24/22 7:00 AM: Vodafone Group (VOD, $16.01) was a top weekly gainer, with a +6.59% jump
The average weekly volume growth across all stocks in the group was 138.03%. For the same stocks of the group, the average monthly volume growth was 63.74% and the average quarterly volume growth was 142.34%
- 5/12/22 5:32 AM: The volume for INNOVATE stock increased for four consecutive days, resulting in a record-breaking daily growth of 185% of the 65-Day Volume Moving Average
- 5/11/22 7:39 AM: The volume for INNOVATE stock increased for two consecutive days, resulting in a record-breaking daily growth of 228% of the 65-Day Volume Moving Average
- 5/11/22 7:39 AM: The volume for ComSovereign Holding stock increased for one day, resulting in a record-breaking daily growth of 231% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows