by Sam Collins | August 27, 2012 1:00 am
AT&T (NYSE:T) — This is one of the most recognized brand names in the world, and the company is expected to see gains in consumer wireless and broadband services.
Its strong balance sheet, long-term customer relationships and expanding profit margins should result in an increase in the P/E ratio of the stock, along with an increase in earnings. Analysts have increased earnings estimates for both 2012 and 2013 by 3 cents to $2.40 in 2012 and $2.57 in 2013.
Technically the stock broke from a triple-top following a continuation gap in July, and jumped to over $38 before profit-taking in August drove it to just above its 50-day moving average (blue line) near $36. Last week, the stochastic flashed a buy signal.
The trading target for AT&T is raised to $42, but investors should buy now for long-term appreciation and a history of dividend increases. The stock has a current dividend yield of almost 5%.
Source URL: http://investorplace.com/2012/08/trade-of-the-day-att-nyse-t-2/
Short URL: http://invstplc.com/1nzTiws
Copyright ©2015 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.