In today’s edition of the Daily Stock Report, we are going to feature AT&T Inc (T). This is the first time we have looked at AT&T Inc in our daily commentary. With the growing market uncertainty over the last quarter, money flows are migrating towards defensive sectors such as a tried and true Telecommunications name such as AT&T due to its appealing dividend yield, providing a reliable income stream and a buffer against share price declines when market conditions are uncertain. The SIA Platform picked up on this
positive money inflows well before the markets started to become challenging, highlighting the power of the SIA Platform and how you can get valuable calls to action on where to look for opportunities.
AT&T has shown consistent strength over the last little while moving up 2 spots in the last week, 6 spots in the last month and 101 spots in the last quarter in SIA’s S&P 500 Index Report. It currently sits at the top of the Favored Zone in the SIA S&P 500 Index in the #1 spot in the report. AT&T first entered the Favored zone on September 6, 2024, at a price of $20.97. At yesterday’s close, the shares are at $26.39 representing a 25.8% increase in a little over 7 months and this does not even include its compelling annual dividend yield of 4.14%. In looking at the Daily Candlestick Chart, we see the stock has been in a steady uptrend in the past year with a pattern of higher highs and higher lows. On April 7, a bullish candlestick developed where the shares opened at the day low but finished the trading day near its day high. This is indicative of the buyers stepping in as market participants are viewing this as fair value or an opportunity. When the trade wars and subsequent market volatility really started to escalate here in the past month the shares still held up admirably with a one month return of -2.69%
compared to the one month trailing performance return of the S&P 500 of negative -13.65%, representing a 10.96% outperformance in these challenging markets.
In looking at a trailing 3 month timespan, the differences are even more impressive with AT&T up +20.49% while the S&P 500 down -15.81% representing a whopping 36.30% outperformance in this short 3 month time period. Support can be found at the $25 area where the buyers stepped on April 7th. Potential resistance can be found at the recent high of approximately $28.50.
In looking at a 2% scale on a Point the Figure Chart, we see the shares have been in a very strong and steady uptrend of a column of 21 X’s since May of 2024 up until December. Since that time 3 short pullbacks ensured, lasting 4 boxes in January and another lasting only 3 boxes last month and another 3 box reversal today. Most recently we see the shares had established a new high, breaking above March’s peak at $27.62 before succumbing to a 3 box reversal. It will be interesting to see if the shares continue its upward movement after 2 previous mild pullbacks it experienced earlier this year. The shares are right at support at the 3 box reversal of $26.03 and, below that, $23.58. If a new uptrend materializes, next resistance is at $28.74 and above that, $30.50 based on a measured move. With a SMAX score of a perfect 10 out of 10, AT&T is showing near term strength against all the asset classes. AT&T is the third- largest U.S. wireless carrier, connecting 67 million postpaid and 17 million prepaid phone customers. Fixed-line enterprise services, which account for about 20% of revenue, include internet access, private networking, security, voice, and wholesale network capacity. Residential fixed-line services, about 10% of revenue, primarily consist of broadband internet access service. AT&T also has a sizable presence in Mexico, serving 20 million customers, but this business only accounts for 2% of revenue. The firm still holds a 70% equity stake in satellite television provider DirecTV but does not consolidate this business in its financial statements.
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