Recs

14

4-Star Stocks Poised to Pop: AT&T

Based on the aggregated intelligence of 150,000-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

Headquarters (Founded)

Dallas (1983) (SBC Communications legacy)

Market Cap

$149.0 billion

Industry

Integrated telecommunication services

Trailing-12-Month Revenue

$123.0 billion

Management

CEO Randall Stephenson (since 2007)

CFO Richard Lindner (since 2004)

Return on Equity (Average, Past 3 Years)

11.7%

Dividend Yield

6.7%

Cash/Debt

$3.8 billion / $72.1 billion

Competitors

Sprint Nextel (NYSE: S  )

Verizon Communications (NYSE: VZ  )

CAPS Members Bullish on T Also Bullish on

Apple (Nasdaq: AAPL  )

Google (Nasdaq: GOOG  )

CAPS Members Bearish on T Also Bearish on

Citigroup (NYSE: C  )

Ford Motor (NYSE: F  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 94% of the 4,991 members who have rated AT&T believe the stock will outperform the S&P 500 going forward. These bulls include 3domfighter and AvgJoe22.

Last month, 3domfighter tapped the company's recent troubles as an opportunity to pounce: "AT&T is a monster in the industry that has been unable to realize its potential in the rally since last March due mostly to bad press. In the meantime earnings are strong. In my opinion this stock is selling at about a 20% discount and I am a buyer."

In a pitch from two weeks later, AvgJoe22 echoes that bullish sentiment:

Despite its bad press about service coverage, [AT&T] is raking in revenue from iPhone users. It continues to invest in infrastructure that will result in significantly fewer complaints. [AT&T] will pay you 6% in dividends while this infrastructure build out takes place.

What do you think about AT&T, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple and Ford are Motley Fool Stock Advisor picks, Sprint is an Inside Value choice, and Google is a recommendation of Rule Breakers. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

2/10/2012 4:00 PM
T $29.84 Down -0.15 -0.50%
AT&T CAPS Rating: ***
GOOG $605.91 Down -5.55 -0.91%
Google CAPS Rating: ****
S $2.29 Down -0.10 -4.18%
Sprint Nextel Corp CAPS Rating: **
VZ $37.69 Down -0.23 -0.61%
Verizon Communicat… CAPS Rating: ****
AAPL $493.42 Up +0.25 +0.05%
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C $32.93 Down -0.74 -2.18%
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F $12.44 Down -0.25 -1.97%
Ford CAPS Rating: ****

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