2016-06-28 14:38:09

AT&T Inc., #T [NYSE]
Technology, Telecommunications services, USA

Financial performance of the company:
Index – S&P 500; Beta – 0.27;
Capitalization – 227.29 В; Return on asset – 4.60%;
Income - 13.34 B; Average volume – 29.25 М;
P/E - 18.44; ATR – 0.54

Analytical review:

  • The company ranks the fifth on capitalization in the sector of “Technologies” among the issuers traded in the American stock market;
  • AT&T Inc. is incorporated into the index S&P 500. This week, American stock market has significantly declined. ETF of the index S&P 500 (#SPY) fell by 4%. However, the company was stronger than the market. WE can see that the issuer is in the uptrend. The stocks of AT&T Inc. have grown by over 3%;
  • Company’s last report was favourable for investors. Company’s revenue has grown by 24%, up to 40.54 billion USD. EPS (earnings per share) amounted to 0.72 USD against 0.63 USD for the same period a year ago;
  • Large investment companies and banks (DA Davidson, Nomura, Barclays) predict that prices the company’s shares will rise up to 44 USD per share;
  • Another driver, indicating possibility of the further increase in the company’s value is P/E Ratio. AT&T's P/E Ratio (18.44) is below the average P/E in the industry (21.79) and in the sector (22.15);
  • AT&T Inc. will represent interest for long-term investment strategies. The company duly pays off dividends to its shareholders. Dividend yield of the company (4.62%) is much higher than of the similar companies in the industry (0.62%).

Summary:

  • Company’s last report showed that Management of the company is on the right track. Despite pressure from the strong USD, company’s revenue and net profit have grown. The issuer much stronger than the market. Large investment funds predict positive dynamics of shares of the company.
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of AT&T Inc.

Key levels:
Support levels: 41.55 USD and 40.50 USD.
Resistance level: 42.20 USD.

Medium-term trading, Н1
At the moment the issuer is traded in the demand zone of 41.55-41.85 USD. If the price maintains this zone and in case of the respective confirmation (such as pattern Price Action), we will recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 43.00 USD, 44.00 USD and 45.00 USD with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, Н1

Short-term trading, М15
Currently, the issuer is traded between the local support and resistance levels of 41.45/42.05 USD. We recommend to enter the market after breakdown and testing of these levels. Positions can be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading, М15
Short-term trading, М15