The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and consumer goods editor and analyst Austin Smith discuss topics across the investing world.
Through last weekend, Verizon and AT&T were both up about 10% in the past month, making them the Dow's two top performers. While the two stocks have suffered relative to their peers in recent years, in large part because of their lack of international exposure, today that situation has reversed. Telecom companies that expanded across Europe and other ailing regions are now the ones suffering. Not only that, but the companies' surge has also paralleled a steep drop in Apple across the same time frame. A large part of this is the continuing story line that telecoms will be able to wrestle control back from Apple, ensuring less subsidies to stock the iPhone. While AT&T and Verizon are both fine plays for yield-focused investors and are nice defensive plays if the global economy is rocked in the next couple of years, Eric notes that at its current growth rates, AT&T at 15 times free cash flow might be at the upper end of its price range. To hear Eric's further thoughts, watch the video below.
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