Stocks to Sell #3: AT&T (T)
Like PepsiCo (PEP), Berkshire Hathaway (BRK.B) and General Mills (GIS), AT&T has underperformed in recent months, and it is sitting right above its support. Further, as is the case with Symantec — as well as Pepsi, General Mills and Berkshire, for that matter — the 200-day moving average has begun to turn lower.
AT&T isn’t a short by any means, and its 5.5% yield is likely to dampen the potential downside. Instead, the stock’s technical position argues for a cautious approach — especially in light of the unenthusiastic reception to the company’s earnings report Tuesday.
Given their current chart patterns, there’s no rush to take advantage of the underperformance of defensive stocks such as AT&T just yet.