AT&T: It Will Be Different This Time Around

Feb. 21, 2018 2:03 AM ETAT&T Inc. (T)46 Comments
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WG Investment Research


  • AT&T has underperformed the broader market since early 2015, but it will be different this time around.
  • This company is more than just an income play, especially if you are willing (and able) to wait for the long-term story to play out.
  • AT&T is a long-term buy at today's price.

AT&T (NYSE:T) is operating in a challenging (and changing) business environment but I believe that there is a lot to like about how this company is positioned for 2018 and beyond. In "AT&T: I Like Where You Are Heading", I described to the Seeking Alpha community why I was bullish about AT&T's future growth prospects. However, the company's stock performance since that point in time has been nothing to write home about.

T data by YCharts

The graph above does not tell the whole story (i.e., the stock performance does not include dividends) so, in my opinion, the past underperformance is not a good reason to jump ship just yet. This telecom company has several catalysts in place that should help propel the stock price higher and allow for AT&T to be a market beater over the next three years so, in my opinion, it will be different this time around.

What Will Be Different This Time Around?

Before we get to the real reason why shareholders are invested in AT&T (i.e., the dividend), let's focus on the catalysts that I believe will help the company's stock performance beat the market over the next three years:

International Growth

To start, I believe that AT&T has an international business that has great long-term business prospects. It also helps the bull case that the company has already shown the ability to grow its businesses outside of the U.S.

Plus, there are now rumors that AT&T may soon enter the Brazil mobile market and, while I believe it is a little premature to get too excited, as a long-term shareholder I am encouraged about this potential market opportunity.

Connect This, Connect That

The global economy is entering into a period of time where almost everything around us is becoming connected. Connected devices are now

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This article was written by

WG Investment Research profile picture
Our President and CIO is a CPA with experience in public accounting and the financial services industry. He earned his Master of Accountancy degree in 2008 and his B.S. in Business Management in 2007. He is also a Level III CFA candidate. He has been intrigued by the market from the start. Over the years, he has learned that long-term investing is a discipline that, if followed, will help contribute to building lasting wealth. As such, most of our articles will be about the investments that we plan to hold for at least 3 to 5 years, as long as the company's story does not change. As a Seeking Alpha contributor, our main goal is to write about the companies that are key to our portfolio with the hope of promoting discussion (for or against the investment) from others within the SA community.Please visit our website for more information about W.G. Investment Research LLC.

Disclosure: I am/we are long T, TWX. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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