Can a new surge push AT&T stock up — with 5G on the horizon?
Some investors are keeping a close watch on AT&T stock … The blue-chip soared 5% in pre-market trading this morning. That’s up from a previous close of $36.25 to values above $38 per share.
The numbers cap a five-day rally that brought AT&T from around $35 upward, wowing crowds looking for short-term increases in a volatile market.
A six-month chart shows that AT&T was nearly as low as $30 on March 11, and year-over-year figures show the value at just over $32 about a year ago.
Market Forces
In analyzing AT&T growth and value increases, some note the emergence of the new 5G network as a driver. As 5G approaches, and cell phone makers show off new phones and adapter kits, there may be a lot of potential for the first carriers into the fray.
There’s also the idea that AT&T’s moves into media are paying off. A recent Motley Fool article covers this trend — as well as its dividend yield — as precursors to growth. Although the same post points out that AT&T equity hasn’t always had this level of stock enthusiasm…
For example, in July, reports on T stock slumping cited failed deals with both CBS and Nexstar as catalysts for faltering price action.
Climbing T Price Action
There are some other recent signs that AT&T stock could go higher, and some analysts took note. According to SeekingAlpha, AT&T was already trading at 52-week highs last week.
There are other points on the company timeline that can show its potential for growth — like the acquisition of DirecTV in 2015 and Time Warner in 2018. In other words, not all of AT&T’s partnership or merge deals were duds, even if the expansion led to some $180 billion in debt.
Also, as early as April, the company was showing off a debt reduction plan involving dividends with an endgame this year. That move seems to be working and helping to mollify those who worry about the higher levels of borrowing. A report by SeekingAlpha in June called debt fears “overblown.”
Longer-Term Trends
Whatever the reason, there seems to be renewed interest in AT&T as a staying force. It could partially be that assurance on debt can make the equity more attractive to a broader spectrum of buyers.
Over the longer term, AT&T has stayed just about where it is, although today’s gains would build the share price above the approximate $35 mark it attained in September 2014. Since then, the company stock has spiked above $40 in 2016 and 2017, though it fared less well in the intervening years.
Looking at the longer-term trends, the company is on a steady march upward from the beginning of 2019. And if AT&T can conquer the 5G challenge, the telecom giant may reclaim its crowning glory by the year’s end.
As of market open today, AT&T is holding its pre-market gain, with a balance price point of $37.99. That move of nearly two dollars above its previous close looks impressive at the end of a month-to-month chart … And that may help to drive further interest in a time-tested telecom stock.
