We came across a bullish thesis on AT&T Inc. (T) on Substack by Stock Analysis Compilation. In this article, we will summarize the bulls’ thesis on T. AT&T Inc. (T)'s share was trading at $23.27 as of Nov 27^th. T’s trailing and forward P/E were 18.92 and 10.26 respectively according to Yahoo Finance.

A powerful telecommunications tower in an isolated landscape, representing the advanced technology of the company's digital services.

AT&T, a Dallas-based telecommunications giant, has undergone a strategic transformation that positions it for long-term profitability and value creation. Originally valued at $141 billion with a 5.6% dividend yield, AT&T has refocused on its core telecom business, moving away from the volatile media sector. A pivotal moment came in 2022 when AT&T merged its WarnerMedia division with Discovery, shedding its media exposure and reallocating resources towards enhancing its telecom operations. Under the leadership of CEO John Stankey, appointed in 2020, the company has made significant strides to restructure and reduce long-term debt, aligning its operations for future growth.

Key to AT&T's investment case is its aggressive strategy in digital infrastructure, notably its mid-band 5G network, which now covers over 210 million people. This investment in cutting-edge technology strengthens its competitive edge and improves service reliability. Additionally, AT&T has been actively addressing societal challenges, including bridging the digital divide by providing low-cost broadband access to underserved communities. The company is well on track to connect one million individuals through its AT&T Connected Learning initiative by 2025. AT&T has also committed to becoming carbon-neutral by 2035, focusing on reducing emissions across its operations and helping customers lower their carbon footprints.

With these strategic moves, AT&T is positioning itself for improved financial performance. The shift from media to telecom, combined with a focus on reducing debt and enhancing its network, creates a solid foundation for growth. The strong leadership and investment in infrastructure and sustainability should allow AT&T to deliver consistent returns for shareholders while maintaining its position as a key player in the telecom industry.

AT&T Inc. (T) is not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held T at the end of the third quarter which was 71 in the previous quarter. While we acknowledge the risk and potential of T as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than T but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.