Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Catching up with the latest smartphone trend, AT&T, Inc. (T - Analyst Report) will be launching the latest Samsung premium smartphone – Galaxy S4 – in Jun 21. The handset will be available for $199.99 on a two-year contract. We believe the latest addition of premium handsets will drive customer additions and upgrades leading to revenue accretion for the company.  

This year, AT&T rolled out Research in Motion’s (BBRY - Analyst Report) BlackBerry Z10 with the aim of adding customers. The company in its latest update on its second quarter performance indicated a surge in its wireless business, in particular the post-paid segment, following promotional strategies that it had undertaken. These initiatives resulted in increased smartphone upgrades along with sales.  AT&T is now primarily focused on adding devices that mostly support 4G LTE to its equipment portfolio. This is because the company has accelerated its 4G Long-Term Evolution (LTE) and remains ahead of schedule.

The company boasts the best Internet speeds in the industry as it is the only U.S. carrier that provides 4G networks through both Long Term Evolution (LTE)and High-Speed Packet Access Plus (HSPA+) technologies. AT&T’s LTE networks serve asthe benchmark of mobile technology and the life-blood for operators across the world.  The LTE expansion of the company is also supported through Project Velocity. Under this project, AT&T will invest $14 billion in the coming three years to considerably expand the wireless (investment of $8 billion) and wireline (investment of $6 billion) Internet Protocol (IP) broadband networks.

The company targets to extend the wireline IP network to nearly 57 million customer locations (including both customers and small businesses) – covering 75% of AT&T’s wireline service area – by the end of 2015. This project underlines the company’s efforts to meet the growing demand for high-speed Internet. We believe that this investment program will provide AT&T with a high-potential growth platform, leading to higher revenues and improved earnings per share over the near term.

AT&T, currently has Zacks Rank #3 (Hold).

Other Stocks

Telefonica Brasil, S.A. (VIV - Analyst Report) and TELUS Corporation (TU - Analyst Report) with Zacks Rank #2 (Buy) are two stocks we find worth considering in the telecom sector.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%