For Immediate Release
Chicago, IL – May 20, 2016 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include AT&T (NYSE:T), Inc. (T), Verizon Communications Inc (NYSE:VZ). (VZ), T-Mobile US, Inc. (TMUS) and Sprint Corp. (S).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday’s Analyst Blog:
AT&T Poised for Long-Term Growth Despite Competition Woes
On May 18, we issued an updated research report on U.S. telecom behemoth AT&T, Inc. ( T).
AT&T reported strong financial results in the first quarter of 2016 with both the top and the bottom line beating the Zacks Consensus Estimate. However, the company’s U.S. postpaid wireless subscriber addition of 129,000 was down a significant 70.7% year over year.
Nonetheless, prospects of better earnings and revenues over the long haul from the DIRECTV (NASDAQ:DTV) purchase are bright. From 2016 to 2018, AT&T expects consolidated revenue growth to be in line with GDP growth or higher while adjusted earnings per share growth is projected in the mid-single digit range.
With its combination of U-Verse – DIRECTV’s satellite TV -- and an all-fiber GigaPower Internet service, AT&T now has the operational flexibility to provide traditional cable TV service as well as mobile video streaming service to users.
In March, the company announced plans to offer a version of its DIRECTV satellite TV service through the Internet which would not require customers to have a satellite dish, set-top box or annual contract. The company will be offering three affordable video plans in order to appeal to all types of viewers, ranging from those who want the full package to a streamlined bundle.
We believe that the new endeavor will help AT&T attract cord cutters and boost revenues. Also, offering of two-year guaranteed pricing for its new DIRECTV, home internet and digital phone customers is expected to aid in expansion of its satellite offering in the residential services segment.
AT&T has revealed plans to field test the next-gen 5G technology. If the company succeeds to bring 5G to the U.S. market before any of its peers, its quest to be the numero uno in the domestic market will definitely see a positive direction.
Further, the company stands to benefit hugely from initiatives in the Internet of Things (IoT) space and investments in the Mexican telecom market and fiber arena.
However, AT&T has increased the prices of its voice and U-verse video services because of rising operating costs, especially in programming and service delivery, as well as increasing content costs. This may impact subscriber retention in the near term.
Additionally, a saturated wireless market, spectrum crunch and regulatory risks remain potent headwinds. Moreover, intensifying competition in the U.S. wireless market from peers like Verizon Communications Inc. (VZ), T-Mobile US, Inc. (TMUS) and Sprint Corp. ( S) is another major concern.
AT&T currently has a Zacks Rank #3 (Hold).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
AT&T INC (T): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
T-MOBILE US INC (TMUS): Free Stock Analysis Report
SPRINT CORP (S): Free Stock Analysis Report
Original post