8 Best Stocks Under $50 To Invest In Now

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

Number of Hedge Fund Holders: 71

Share Price as of September 27: $21.9 

AT&T Inc. (NYSE:T) is one of the largest telecommunications companies in the U.S., known for its expansive wireless and broadband services. The stock is currently trading under $50, making it an attractive option for value-oriented investors seeking stability and growth potential. As of the second quarter of 2024, AT&T had 71 hedge fund holders, up from 70 in the previous quarter, indicating increased institutional interest.

In its Q2 2024 earnings report, AT&T Inc. (NYSE:T) delivered solid results despite missing EPS expectations slightly at $0.57, compared to the expected $0.575. The company’s robust performance in key segments, such as Mobility and Consumer Wireline, showcases its strong fundamentals and strategic execution. For the quarter, AT&T reported 419,000 postpaid phone net additions, reflecting a 9 basis point decline in churn to 0.70%. Mobility service revenues grew by 3.4%, driven by improved pricing and a balanced go-to-market strategy. EBITDA in this segment rose by 5.3%, as the company converted over 85% of its service revenue growth into EBITDA.

In the Consumer Wireline segment, AT&T Inc. (NYSE:T) continues to gain momentum, adding 239,000 AT&T Fiber subscribers in Q2 2024. This marks the fourth consecutive quarter of positive broadband net additions, highlighting the company’s ability to attract and retain customers through its high-speed fiber offerings. Overall broadband revenues increased by 7%, supported by a significant 18% rise in fiber revenues. This growth has led to a 7.1% increase in Consumer Wireline EBITDA, as AT&T shifts from legacy copper networks to advanced broadband infrastructure.

The company’s strategic investments in 5G and fiber are paying off, as the convergence of these two segments drives overall growth. Nearly four out of every ten AT&T Fiber households also choose AT&T as their wireless provider, a testament to its success in bundling services. This integration is expected to enhance long-term profitability and increase returns on invested capital.

Additionally, AT&T Inc. (NYSE:T) is making progress in deleveraging its balance sheet, reducing net debt by $2 billion year-to-date. The company aims to achieve a net debt-to-adjusted EBITDA ratio of 2.5x by the first half of 2025, which should provide greater financial flexibility for sustained investments and shareholder returns. With strong fundamentals and a focus on profitable growth, AT&T Inc. (NYSE:T) remains a compelling stock under $50 to invest in now.