We recently published a list of 10 Stocks to Watch as Trade Wars Begin. In this article, we are going to take a look at where AT&T Inc. (NYSE:T) stands against other stocks to watch as trade wars begin.
Bill Strazzullo, Bell Curve Trading chief market strategist, said in a latest program on CNBC that the market isn’t done going down and urged investors not to buy every dip and wait for real opportunities. The analyst made some specific predictions about the market bottom:
“Still think it’s not over. I think you know probably across the board it’s another 15% to go to the downside. Look, the top wasn’t that difficult to call. It really wasn’t. And I think the bottom, typically on these major trends when they roll over, they do the same thing. They mean revert to fair value, which is a fancy way of saying that the market should drop down to where most of the trade activity has taken place on the major trend, which is the rally off the March 2020 lows.”
Strazzullo thinks the S&P 500 could fall to 4,500 to 4,100 before seeing a bottom. He repeatedly said during the interview that the market’s gains from the pandemic days are “tapped out.”
“The key driver here was the rally off the March 2020 lows in the height of the pandemic when we knew we were going to get historic monetary and fiscal stimulus. If you knew that, that was the right trend, you could have known months in advance when the market was going to top out. I gave the targets months in advance. If you missed this fundamentally or technically, you were asleep at the switch.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
For this article, we picked 10 stocks Wall Street is closely watching amid the US-China trade war. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
AT&T Inc (NYSE:T)
Number of Hedge Fund Investors: 59
Jim Cramer in a recent program on CNBC recommended investors gain exposure to telecom companies like AT&T Inc (NYSE:T) for overall downside protection amid tariff-related uncertainty:
“You know what’s really in the driver’s seat here? Telco. The price wars are over, people. Verizon and AT&T have good deals—they both work. They’ve been working. AT&T is suddenly out-executing everybody else in the space. It also has the best chart in the entire book.”
TCW Relative Value Large Cap Fund stated the following regarding AT&T Inc. (NYSE:T) in its Q3 2024 investor letter:
“AT&T Inc. (NYSE:T), based in Dallas, TX, is a nationwide provider of voice, video, and data communications services to businesses and consumers in the wired, wireless, and broadband. At initiation, the stock had a $141 billion market capitalization and met all five valuation factors with an above market dividend yield of 5.6%. From a sustainability prism, the company completed its commitment to invest $2 billion by the end of 2023 to help bridge the digital divide. AT&T is working on enabling low-income households to access to low-cost broadband services through its Access service plan as well as reaching out to more rural communities and Tribal lands where internet access remains a challenge. It is nearly 85% the way to providing one million people in need with digital resources through AT&T Connected Learning® with the goal to be reached by the end of 2025. In 2020, the company announced that it is committed to be carbon neutral by 2035 with zero carbon emission across all operations. It is deploying Smart Climate Solutions – through efforts like its Connected Climate Initiative – that will help enable its business customers to reduce their emissions as well. The company’s goal is to help collectively reduce its emissions by one billion metric tons – a gigaton – by 2035, compared to 2018 levels. The primary catalysts are new/strong management and restructuring. John Stankey was appointed CEO in July 2020 and he is committed to refocusing the company and improving its financial performance. The company combined its WarnerMedia operation with Discovery during 1Q:22 which eliminated AT&T’s exposure to the rapidly evolving media industry and refocused its core telecommunication business thus eliminating a major drag on profitability and the company’s balance sheet by reducing long-term debt from a peak $176 billion during 2020 to $142 billion at the end of June 2024 quarter. AT&T is moving aggressively to reduce cost and sell non-core assets such as its advertising platform Xander to Microsoft† which was accomplished during 2022. The company has redesigned its network to be software driven structure reducing the capital investment cycle in its national network – resulting in a network that is flexible with unrivaled speed and reliability – thus enhancing its nationwide position. By the end of 2023, it expanded its 5G network to reach more than 302 million people in nearly 24,500 cities and towns in the U.S. The company’s mid-band 5G+ network alone grew to cover more than 210 million people. AT&T is one of the largest investors in digital infrastructure in the U.S. Over the five years ending 2023, the company invested nearly $150 billion primarily in its wireless, fiber optics, and wireline networks. The extensive restructuring and refocusing of AT&T on its core business should result in improved earnings and cash flow while at the same time reducing uncertainty for shareholders.”
Overall, T ranks 8th on our list of stocks to watch as trade wars begin. While we acknowledge the potential of T as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than T but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
