AT&T (NYSE:T) shares are down on Tuesday. The company disclosed enhancements to the AT&T Points Plus Card in partnership with Citigroup (NYSE:C) on Monday.
• AT&T stock is trading in a tight range. What should traders watch with T?
This move aims to provide customers with more ways to save money and maximize rewards, adding pressure as broader markets edged lower.
The AT&T Points Plus Card now offers new benefits, allowing customers to save on their AT&T bills and earn rewards on purchases.
This initiative is part of AT&T’s strategy to simplify value and savings for customers, with no annual fee associated with the card.
$2 Billion Push To Power Next-Gen Emergency Network
Last week, AT&T revealed a $2 billion agreement to upgrade the nation’s emergency communications infrastructure. The National Telecommunications and Information Administration confirmed that Secretary Howard Lutnick worked with AT&T to advance public safety via the First Responder Network Authority’s nationwide broadband network.
Under the deal, AT&T will cut FirstNet costs by roughly $1 billion — freeing up capital to accelerate investment in the Nationwide Public Safety Broadband Network and fast-track deployment of a dedicated public safety 5G core.
Technical Analysis
The broader market is experiencing mixed performance, with the Communication Services sector up 0.20%. AT&T’s decline comes as the sector shows modest gains, indicating company-specific factors may be at play.
AT&T is currently trading within its 52-week range, with a high of $29.79 and a low of $22.95. The stock is trading 5% below its 20-day simple moving average (SMA) and 5.9% below its 50-day SMA, suggesting short-term weakness.
The stock is also trading 0.2% below its 100-day SMA, indicating a struggle to maintain upward momentum in the intermediate term. The relative strength index (RSI) is at 38.12, which is neutral, suggesting the stock is neither overbought nor oversold.
- Key Resistance: $29.50 — A level where the stock has previously struggled to maintain upward momentum.
- Key Support: $25 — A critical level that could indicate a reversal if tested.
Earnings & Analyst Outlook
The countdown is on: AT&T is set to report earnings on April 22 (confirmed).
- EPS Estimate: 55 cents (Up from 51 cents)
- Revenue Estimate: $31.23 billion (Up from $30.63 billion)
- Valuation: P/E of 8.6x (Indicates value opportunity)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with a consensus price target of $28.50. Recent analyst moves include:
- Scotiabank: Sector Perform (Raises target to $31.50 on April 1)
- Keybanc: Overweight (Raises target to $36 on March 25)
- Citigroup: Buy (Raises target to $31.50 on March 23)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for AT&T, highlighting its strengths and weaknesses compared to the broader market:
- Value: 42.33 — The stock is trading at a lower valuation as compared to peers.
- Growth: 83 — Indicates strong growth potential relative to the market.
- Quality: 54.41 — Suggests a balanced financial health.
- Momentum: 33.86 — Indicates weak momentum in the current market.
The Verdict: AT&T’s Benzinga Edge signal reveals a mixed profile, with strong growth potential but weak momentum, suggesting a cautious approach for investors.
Top ETF Exposure
- State Street Communication Services Select Sector SPDR ETF (NYSE:XLC): 5.02% Weight
- iShares Global Comm Services ETF (NYSE:IXP): 5.07% Weight
- GQG US Equity ETF (NYSE:GQGU): 5.05% Weight
Significance: Because AT&T carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
T Stock Price Activity: AT&T shares were down 0.11% at $26.15 at the time of publication on Tuesday, according to Benzinga Pro data.
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