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%.
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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.