10 Best Undervalued Stocks to Buy Right Now

3) AT&T Inc. (NYSE:T)

Forward P/E Ratio as of 8 November: 9.87x

Number of Hedge Fund Holders: 71

AT&T Inc. (NYSE:T) offers telecommunications and technology services worldwide.

AT&T Inc. (NYSE:T) has been quite active in exploring new avenues for growth. During the Q3 2024 earnings call, it hinted at potential expansion in its home fiber network, which includes wholesale and infrastructure opportunities. This strategic pivot is expected to result in new revenue streams and strengthen AT&T Inc. (NYSE:T)’s market position amidst the evolving telecommunications sector. Its emphasis on fiber network expansion aligns with the elevated demand for high-speed internet services.

Wall Street experts opine that the telecommunications industry has been evolving rapidly as a result of technological advancements and changing consumer behaviors. AT&T Inc. (NYSE:T)’s strategic focus on fiber network expansion is expected to support it in navigating the competitive landscape. With elevated demand for high-speed internet, as a result of remote work, streaming services, and smart home technologies, AT&T Inc. (NYSE:T)’s fiber offerings are expected to attract new customers and increase average revenue per user.

The company continues to explore secondary market opportunities for spectrum acquisition. Also, its investments are focused on sustaining EBITDA growth and improving profit margins, mainly in the Consumer broadband segment. AT&T Inc. (NYSE:T)’s pivot towards a connectivity-based business model and the divestiture of DIRECTV demonstrates its commitment to 5G and fiber connectivity.

Analysts at JPMorgan Chase & Co. upped their target price on the shares of AT&T Inc. (NYSE:T) from $21.00 to $24.00, giving an “Overweight” rating on 25^th July.