The last few years have been a miserable time to own AT (NYSE: T) stock. Thanks largely to its dividend income, AT investors earned a total return of just 13% over the last five years, a span when the S 500 drove total gains of nearly 110%. Additionally, the company faces considerable financial challenges because it has to spend heavily to remain competitive with Verizon Communications and T-Mobile.

Nonetheless, AT has reached a point where it has become too compelling to ignore, and one factor likely makes it a buy regardless of the apparent trials that might otherwise derail the stock.

The reason to buy AT stock is its compelling valuation. The stock currently sells AT a P/E ratio of 7. This is a small fraction of the S 500's average P/E ratio of 26. Since numerous technology stocks experienced multiple significant expansions amid the AI-driven boom, such valuations are uncommonly low in today's tech industry.

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Source Fool.com