AT&T Inc. (NYSE:T) has a had an abysmal year with its share price down 11% in the past 12 months, but it looks as thought it might be on the way back up. On Tuesday, AT&T’s stock made a very bullish crossover when its 50-day moving average crossed over its 200-day average, which is known as a “golden cross” and signals that the stock is on a strong trajectory upward.
The opposite happened back in May when the share price was trading at a little under $38. Although it would see some fluctuations along the way, it would ultimately hit a low of $32 before starting its climb back up over the past several months.
The stock was making good progress and before the big decline in the market it was back up to $39, and there’s no reason to think it won’t get back up there.
AT&T’s stock is a good value buy as the share price trades at less than eight times its earnings and at a multiple of just 1.6 times its book value. While the company’s most recent results may not have inspired much confidence given the lack of growth in the top line, AT&T provides a great deal of consistency for investors and can be a great long-term buy.
While capital appreciation has been hard to come by with the stock yielding returns of less than 4% in the past five years, its dividend pays shareholders more than 5.4% and that is likely to grow as the company has a history of raising its payouts.
