AT&T Stock Is Still Dirt Cheap After Surging Nearly 20%

Shares of telecom giant AT (NYSE: T) have been stuck in a rut for much of 2023. Slowing subscriber growth, an uncertain economic outlook, mountains of debt, and fear that the company's free cash flow outlook was overly optimistic put downward pressure on the stock.

While the economy is no less uncertain than it was earlier this year, AT is looking like a safer bet. Postpaid phone subscriber gains accelerated in the third quarter, churn remained low, and the company boosted its free cash flow outlook. AT now expects to deliver full-year free cash flow of $16.5 billion, up from a prior outlook of at least $16 billion.

Since bottoming out in July, shares of AT have rallied nearly 20%. Even after bouncing off that low, the stock remains priced for disaster. While conditions in the wireless industry could certainly degrade, AT stock is too inexpensive to ignore.

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Source Fool.com