Friday, July 20, 2012

AT&T Is a Resounding Buy Traders and investors should jump on T after triple-top break

AT&T (NYSE:T) — This is one of the most recognized brand names in the world, and the company is expected to see gains in consumer wireless and broadband services.

Its strong balance sheet, long-term customer relationships and expanding profit margins should result in an increase in the P/E multiple of the stock, along with an increase in earnings. Analysts estimate that AT&T will earn $2.37 in 2012 and $2.54 in 2013.

Technically the stock broke from a double-top in April, and tracked its 20-day and 50-day moving averages to a triple-top break Wednesday, closing at over $36.

The trading target for T is $40, but investors should buy now for long-term appreciation. The stock has a dividend yield of almost 5%.

Trade of the Day – AT&T (NYSE:T)

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