#4 - AT&T (NYSE:T)
From Crown Castle that is building out the infrastructure that will support 5G technology, we turn our attention to AT&T (NYSE:T), which will be responsible for putting that technology into the hands of consumers. And while there are pure plays in wireless, such as Verizon (NYSE:VZ), I prefer the diversity of AT&T.
Every brand needs a certain degree of stickiness. That means having a way to generate revenue on more than one front. Some analysts view this as a weakness for AT&T. Their DirecTV investment now seems out of step with a country of consumers that are increasingly cutting the cord. And even though the company will be entering the streaming wars, it looks to be getting in a little late in the game.
Live sports has certainly been a hit to live sports, which has been a lifeline for AT&T’s DirecTV business. But it’s looking increasingly likely that there will be football this fall. That means the NFL Sunday Ticket. And right now, that still means DirecTV. And AT&T is rolling out its streaming service for free to AT&T consumers. That will help to seed it much in the way Disney seeded its own Disney+ service.
But that brings us back to its core wireless business. And let’s be honest. Consumers may cut back on many things, but they are likely to keep their wireless service running a priority. And that should help to blunt any Covid-19 headwinds.
About AT&T
AT&T, Inc is a holding company, which engages in the provision of telecommunications and technology services. It operates through the Communications and Latin America segments. The Communications segment offers wireless, wireline telecom, and broadband services to businesses and consumers located in the US and businesses globally.
More- Current Price
- $24.40
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 18 Buy Ratings, 5 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $26.21 (7.4% Upside)
