Why AT&T Stock Is Up By 4% Today

The Number Of HBO Max And HBO Subscribers Exceeds Guidance

Shares of AT&T gained strong upside momentum after the company revealed that that it ended the year with approximately 73.8 million total global HBO Max and HBO subscribers. The previous guidance was 70 million – 73 million subscribers.

However, it should be noted that the main driver behind the recent rise in AT&T shares is the relief over the future of 5G deployment. Verizon and AT&T have recently agreed to delay 5G deployment due to safety concerns from the aviation industry, but the market believes that both companies are close to the finish line.

Verizon stock has also enjoyed strong upside momentum in recent trading sessions, so the 5G story seems to be the main catalyst for these two stocks, while the recent news on the number of HBO subscribers serve as an additional positive factor for AT&T stock.

What’s Next For AT&T Stock?

Analysts expect that AT&T will report earnings of $3.21 per share in 2022, so the stock is trading at roughly 8 forward P/E. It should be noted that there is some rotation into more traditional, value-oriented plays at the beginning of this year, which is bullish for AT&T.

For example, stocks like Alphabet and Microsoft have recently pulled back from highs while Coca-Cola stock rallied. In case this rotation continues, AT&T stock will get more support.

The company’s valuation remains attractive, and its current quarterly dividend of $0.52 per share makes it an interesting play for income-oriented investors.

It looks that the stock has suffered from tax loss selling at the end of 2021, but it was able to get more support when this catalyst was no longer in play.

Technically, RSI for AT&T stock has recently moved into the overbought territory, so the risk of a near-term pullback is increasing. Fundamentally, cheap valuation, expectations of 5G deployment and attractive yield may provide more support at AT&T stock in the upcoming months.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire