Overall, DirecTV has been quite solid in delivering profits to investors. DirecTV shares have been up 14% over the past month as result of the deal speculation. The merged AT&T/DirecTV would result in a company to rival Comcast (CMCSA) after its Time Warner Cable (TWX) acquisition.
The deal would allow AT&T the chance to transform the future of the television and telecommunications industries. DirecTV's price-to-earnings ratio is 16.9, making the stock attractive, especially in light of its expected compound annual earnings growth of 11.3%.
>>Read More: AT&T's Deal for DirecTV Is a Waste of Money
>>Read More: Physical Retailers Still Have No Answer For Amazon>>Read More: Volkswagen Launches the People's Electric Car At the time of publication, the author held no positions in any of the stocks mentioned. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts