Shares of telecom giant (NYSE: T) have greatly underperformed the broader stock market this year. While the S 500 has logged a 17% gain year to date, the stock has shed about 20% of its value.

Investors have some legitimate concerns. For one, AT's balance sheet is loaded with debt. Net debt totaled $132 billion AT the end of the second quarter, approximately unchanged over the prior year. Although the company plans to knock down this debt over the next two years, interest rates have spiked. As it refinances its debt, the company will likely need to accept higher rates.

There's also the issue of lead-coated telecom cables. The Wall Street Journal reported in July that telecom companies including AT had left miles of lead-coated cables in the ground, underwater, and on overhead poles.

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Source Fool.com