Dow Today: AT&T (T) Lower

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

The Dow Jones Industrial Average ( ^DJI) is trading down 13.0 points at 13,313 as of Friday, Oct 12, 2012, 11:35 a.m. ET. During this time, 237.6 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 575.4 million. The NYSE advances/declines ratio sits at 983 issues advancing vs. 1,858 declining with 150 unchanged.
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Holding back the Dow today is AT&T (NYSE: T), which is lagging the broader Dow index with a 32-cent decline (-0.9%) bringing the stock to $35.94. This single loss is lowering the Dow Jones Industrial Average by 2.42 points or roughly accounting for 18.6% of the Dow's overall loss. Volume for AT&T currently sits at 12.5 million shares traded vs. an average daily trading volume of 24.8 million shares.

AT&T has a market cap of $212.99 billion and is part of the technology sector and telecommunications industry. Shares are up 19.9% year to date as of Thursday's close. The stock's dividend yield sits at 4.8%.

AT&T Inc., together with its subsidiaries, provides telecommunications services to consumers, businesses, and other providers worldwide. The company has a P/E ratio of 49.2, below the average telecommunications industry P/E ratio of 49.9 and above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates AT&T as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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