Back to top

Analyst Blog

AT&T Inc. (T - Analyst Report) announced the expansion of its Digital Life package in new markets–Anacortes, Oak Harbor and Mount Vernon in Washington, and Albany, Corvallis, Lebanon and Salem in Oregon. In 2013, AT&T entered the home security and automation service market with the launch of Digital Life package and has already gained significant market traction in this product segment. We believe the expansion of Digital Life package will eventually remain accretive to revenues and add to bottom-line growth.

The company previously stated that the market for home security services is significantly unaddressed as only 1% of U.S. households have an automated security system. As a result, the company sees financial opportunity in the $18 billion market for automated home security systems. AT&T has so far seen more success in this market compared to its peers thanks to its own technology in home security digital products and adequate marketing and promotional measures.

Apart from the expansion of new products and services, the company already enjoys strong momentum in both wireline and wireless businesses. While continued strength in smartphones is fueling growth in wireless business, wireline is benefiting from growth in its U-verse and strategic services. AT&T is the leader in WiFi (wireless broadband) connectivity with over 30,000 domestic and 190,000 international hotspots.

Other positive attributes for the company include a strategic realignment initiative and a healthy financial profile. However, persistent access line losses, competitive pressure from the likes of Verizon Communications (VZ - Analyst Report) and regulatory issues will likely weigh on the stock in the coming days.

AT&T retains a Zacks Rank #3 (Hold).

Other Stocks

Better-ranked stocks in this sector include Shenandoah Telecommunications Co. (SHEN - Snapshot Report) and Nippon Telegraph and Telephone Corp. (NTT - Snapshot Report). Both carry a Zacks Rank #1 (Strong Buy). 

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

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
SUPER MICRO… SMCI 26.69 +8.98%
CENTURY ALU… CENX 26.68 +6.81%
CANADIAN SO… CSIQ 37.56 +5.98%
BANCO DO BR… BDORY 16.42 +5.70%
AROTECH COR… ARTX 3.77 +5.17%