One communications services player that insiders are falling in love with here is AT&T (T), a provider of telecommunications services in the U.S. and worldwide. Services offered include wireless communications, local exchange services and long-distance services. Insiders are buying this stock into strength, with shares up around 25% so far in 2012.
AT&T has a market cap of $220 billion and an enterprise value of $282 billion. This stock trades at a rich valuation, with a trailing price-to-earnings of 50 and a forward price-to-earnings of 14.75. Its estimated growth rate for this year is 9.1%, and for next year it's pegged at 7.1%. This is far from a cash-rich company, since the total cash position on its balance sheet is $2.15 billion, and its total debt is a whopping $64.53 billion. This stock sports a dividend yield of 4.7%.A director just bought 55,000 shares, or $2.05 million worth of stock, at $37.43 per share. >>5 Dividend-Paying Stocks for the Next Decade From a technical perspective, T is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last six months, with shares soaring from under $30 to its recent high of $38.28 a share. During that uptrend, shares of T have consistently made higher lows and higher highs, which is bullish technical price action. If you're bullish on T, then I would wait for this stock to pullback closer to its 20-day moving average at $35.88 or its 50-day moving average of $34.95 a share. If we don't get those pullbacks and T holds above its recent breakout price of $36.19 a share, then this stock could easily hit $40 in the near future. AT&T, which shows up on a recent list of 2 Dividend Stocks to Sell for Profits, was also featured in "5 Big Stocks Ready to Slingshot Higher."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV