14 Best Affordable Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 80

Share Price as of March 22: $27.02

P/E Ratio as of March 22: 18.13

AT&T Inc. (NYSE:T) is a global telecom and tech company that provides wireless services, internet, fiber, and business solutions. The company was incorporated in 1983 and is based in Dallas, Texas. On March 12, it announced a huge tech breakthrough, proving its network can handle the skyrocketing demand from AI, streaming, and cloud computing. The company successfully tested an incredibly fast 1.6 terabit-per-second connection, four times faster than standard speed, over a 296-km stretch between Newark and Philadelphia. This sets the stage for next-level internet speeds, giving businesses the power to fully tap into AI and other new-age tech. AT&T Inc. (NYSE:T) is one of the best affordable stocks to monitor.

On January 16, Argus just upgraded AT&T Inc. (NYSE:T) from Hold to Buy, assigning a $27 price target to the stock. With cost-cutting measures, network upgrades, and a renewed focus on core services, analysts see solid growth potential in AT&T. The company, bringing in $122 billion annually with a P/E ratio of 17.89, is expected to see steady gains in earnings and cash flow, Argus wrote in a note to investors.

AT&T Inc. (NYSE:T) finished 2024 with solid growth, fueled by strong demand for 5G and fiber. The company added 1.7 million postpaid phone customers, saw a 3.5% increase in service revenue for the year, and continued to lead the industry in customer retention. In Q4, it brought in $32.3 billion in revenue, with $0.56 in earnings per share. The company generated $11.9 billion in cash from operations, with $6.8 billion spent on capital expenditures and $7.1 billion in total investment. Free cash flow came in at $4.8 billion, reflecting AT&T’s efforts to achieve a balanced cash flow cycle.

According to Insider Monkey’s fourth quarter database, 80 hedge funds were bullish on AT&T Inc. (NYSE:T), compared to 59 funds in the preceding quarter. Rajiv Jain’s GQG Partners was the largest stakeholder of the company, with 96.7 million shares worth $2.20 billion.