Wireless communications giant AT&T Inc. (NYSE:T) is set to report second-quarter fiscal 2017 earnings results after the closing bell Tuesday. And, T stockholders are looking for confirmation that AT&T deserves more time to deliver the value the company has promised from its numerous deals.

T stock closed Friday at $36.51 and has fallen more than 14% year to date, not only trailing the 10% rise in the S&P 500 index, but also the better than 9% and 1% respective year-to-date returns delivered by T-Mobile US Inc (NASDAQ:TMUS) and Sprint Corp (NYSE:S).

The fiercely competitive wireless market, driven by the likes of market leader Verizon Communications Inc (NYSE:VZ), has pressured AT&T’s growth prospects.

Nevertheless, the Texas-based company is making moves to improve its growth position. From a risk-versus-reward perspective, given that T stock is priced at a forward P/E ratio of just 13, which is six points below the S&P 500 index, good luck finding another company with the combination of income and growth potential AT&T can deliver.

On Tuesday, I expect AT&T’s results and guidance to provide value-hunting investors the reasons they need to be patient.

Expectations for the Quarter

For the three months that ended June, Wall Street expects AT&T to earn 74 cents per share on revenue of the $39.82 billion. This compares to the year-ago quarter when the company earned 72 cents per share on $40.52 billion in revenue. For the full year, ending in December, earnings are projected to rise 1.7% year over year to $2.89 per share, while full-year revenue of $161.08 billion would decline 1.7% year over year.

In the first quarter, AT&T reported 74 cents in earnings per share, in line with Street estimates, but revenue came in at $39.40 billion, missing the consensus by $1.17 billion. Investors were also spooked by the fact that the revenue total marked a decline of almost 3% year over year, versus the 24.3% revenue growth in the first quarter of 2016. AT&T blamed the revenue decline on record-low equipment sales in wireless.

But, here’s the thing: revenue struggles aside, AT&T — thanks to its improved cost structure — still grew operating margins from 19.9% to 20.7%. And, the fact that the company expects margins to continue to expand in the quarters ahead is not only encouraging,  it also suggests that competitive threats in the wireless market cold be overstated.

What’s Ahead for T Stock

In an effort to become a premier Technology, Media, and Telecom (TMT) provider, AT&T continues to invest in technology to launch a commercial 5G network within the next four years. To that end, the company is in a neck-and-neck race with Verizon to offer ultra-high-speed as well as ultra-high reliability compared to the existing 4G network.

It’s for this reason both wireless giants were in a heated bidding war to acquire Straight Path Communications Inc (NYSEMKT:STRP), which not only owns bandwidth licenses, but also various IP that will play a significant role in emerging 5G capacity. Verizon, which outbid AT&T with a $3.1 billion offer, won Straight Path.

But, AT&T’s prospects in terms of percentage have not been diminished. The company plans to partner with Qualcomm, Inc. (NASDAQ:QCOM) and LM Ericsson (NASDAQ:ERIC) to conduct residential tests of mobile and fixed 5G services.

Among other things, this test will help determine whether DirecTV Now will work well over fixed 5G connections. And to say nothing about AT&T’s proposed $85 billion acquisition of Time Warner, Inc. (NYSE:TWX), which will help diversify AT&T revenues. Combining AT&T’s distribution network with Time Warner’s premium television content gives AT&T a powerful portfolio to go with its wireline, wireless, and pay-TV business.

At the same time, thanks to its increasing focus on targeted advertising, Time Warner will help AT&T better compete with Google and Facebook, Inc. (NASDAQ:FB), which makes boatloads of money by using data to provide advertisers the demographic they are looking for.

Bottom Line for T Stock

AT&T has not delivered the growth investors expected in 2017, especially after a solid 2016. But from around $36 per share, I expect T stock to reach reach $40 by the end of the year, delivering more than 10% returns. And when factoring the company’s robust dividend yield of 5.37%, which is more than twice the 2.00% average yield of the S&P 500 index, T stock should be owned by investors who are looking for a safe dividend-payer that can outperform the market in the next 12 to 18 months.

As of this writing, Richard Saintvilus was long FB stock.