Its shares are at 52-week highs, but telecommunications giant AT&T (T) - Get Report seems dialed in for even more gains in the quarters and years ahead. Let's take a look how to trade the stock in the short term, though, based on Tuesday's earnings report, which is due after the market close.

AT&T shares closed Monday at $38.21, up 0.37%. The stock has risen 11% year to date and 13% in the past six months, besting the S&P 500 (SPX) index during both spans.

Even so, AT&T shares are cheap. From a fundamental perspective, the stock is priced at just 16 times trailing earnings, compared to a price-to-earnings ratio of 21 for the average stock in the S&P 500 index.

It's also attractive from a technical perspective. Take a look at the black arrows on the chart, courtesy of TradingView.

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As AT&T stock has risen, the shares have also consolidated, creating nice platforms at the $36 level and even more so at about $37.86. The trend, as indicated by its moving averages, has moved higher in attractive fashion. The 20-day line (in blue), meanwhile, has moved sideways since the beginning of April, which is not surprising since AT&T was preparing to report earnings. It would seem the market has been in waiting mode for confirmation to send the stock higher.

For the quarter that ended in March, Wall Street expects the Dallas-based company to earn 69 cents per share on revenue of $40.53 billion, translating to year-over-year increases of 63% and 24.4%, respectively. There's nothing conservative about these growth projections, which will be driven by AT&T's DirecTV ownership.

If AT&T reports slightly higher net prepaid additions, which are expected to reach 300,000 in the first quarter, and issues a bullish outlook, the stock could break above $40. Good luck catching it then.

This could mean a 5% rise in the after-hours session Tuesday as compared to Monday's price. The shares will likely trade sideways Tuesday, especially with news of the Fed and its decision on interest rates serving as an overhang. That sets the trade up nicely. Investors should consider buying at market price on Tuesday between $38 and $38.60, and then selling in the after-hours session if the stock rises to between $39.75 and $40.10.

Given the rally the stock has already enjoyed, the risk is a "sell the news" type scenario if AT&T fails to provide near-term catalysts to send the stock higher. But the risk is minimal. Looking forward, the shares are priced at just 13 times fiscal 2016 estimates of $2.84 per share, compared with a P/E of 17 for the S&P 500 index.

Considering AT&T's 5% annual yield, the stock looks even better.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.