Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, telecom behemoth AT&T (NYSE: T ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at AT&T's business and see what CAPS investors are saying about the stock right now.
AT&T facts
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Headquarters (Founded)
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Dallas (1983) (SBC Communications legacy)
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Market Cap
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$160 billion
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Industry
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Integrated telecommunication services
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Trailing-12-Month Revenue
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$123.72 billion
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Management
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Chairman/CEO Randall Stephenson (since 2007)
CFO Richard Lindner (since 2004)
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Return on Equity (Average, Past 3 Years)
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11.7%
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Cash / Debt
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$7.35 billion / $76.72 billion
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Dividend Yield
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6.2%
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Competitors
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Verizon (NYSE: VZ )
Comcast (Nasdaq: CMCSA )
Sprint Nextel (NYSE: S )
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CAPS Members Bullish on T Also Bullish on
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Apple (Nasdaq: AAPL )
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CAPS Members Bearish on T Also Bearish on
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Ford Motor (NYSE: F )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 94.2% of the 4,727 members who have rated AT&T believe the stock will outperform the S&P 500 going forward. These bulls include TMFmrquakeroats and Zimzap.
Two weeks ago, TMFmrquakeroats tapped the stock as one half of a dynamic dividend duo: "I like both AT&T and Verizon to outperform because of their attractive valuation, above average dividend yield, and awesome cash flow generation."
In an earlier pitch, Zimzap expands on AT&T as an exclusive way to enter the big Apple:
The iPhone growth story has been written and reported ad nauseam so I will keep this brief: the iPhone trumps the competition. [Research In Motion (Nasdaq: RIMM ) ] is a great company ... but it lacks the breadth of apps or ease of use to really compete with the iPhone. [Palm's] Pre is the talk of the town but it will have severe difficulty breaching Apple's walled garden. ... Given the fact that cash from continuing operations alone is virtually high enough to cover all other cash obligations, you have a certified cash cow. ...
AT&T should be able to keep its exclusivity with Apple because AT&T needs Apple and is far more willing to subsidize its phones. ... Now that AT&T has eaten from Apple's growth tree, I do not see them giving that growth up very easily. At the very worst, AT&T has lots of new subscribers locked-in with two-year contracts that should lessen the blow of potentially losing the exclusive contact.
What do you think about AT&T, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
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