AT&T Inc. has received a "Buy" rating from 28 analysts. But what drives this consensus? Analysts often rely on technical analysis, which examines price momentum, patterns, and trends from past data. This approach seeks to uncover signals reflecting market sentiment and investors' expectations about AT&T's future value. Let's delve into some key elements of AT&T's technical analysis.
Key Takeaways
As we look ahead to January, AT&T's stock is showing some intriguing technical signals. The 200-day moving average stands at
19.709, suggesting a potential support level that could bolster investor confidence. Additionally, the accumulation distribution figure of
111.4K indicates a steady interest in the stock, hinting at a possible upward momentum.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of ATT Inc. In general, sophisticated investors focus on analyzing ATT stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build ATT's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
ATT's intrinsic value. In addition to deriving basic predictive indicators for ATT, many experienced traders also check how macroeconomic factors affect ATT price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of ATT's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How does ATT Stands against Peers?
Analyzing ATT competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to ATT across multiple sectors and
thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be. Check out
ATT Competition DetailsATT Gross Profit
ATT Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing ATT previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show ATT Gross Profit growth over the last 10 years. Please check ATT's
gross profit and other
fundamental indicators for more details.
Closer look at ATT Downside Variance
ATT Inc has current Downside Variance of 1.53. Downside Variance (or DV) is measured by target semi-variance and is termed downside volatility. It is expressed in percentages and therefore allows for rankings in the same way as variance. One way to view downside volatility is the annualized variance of returns below the target.
Downside Variance is the probability-weighted squared below-target returns.
The squaring of the below-target returns has the effect of penalizing failures at an exponential rate. This is consistent with observations made on the behavior of individual decision-making under.
Downside Variance | = | SUM(RET DEV)2N(ER) |
| = | 1.53 |
| SUM | = | Summation notation |
| RET DEV | = | Actual returns deviation over selected period |
| N(ER) | = | Number of points with returns less than expected return for the period |
Let's now compare ATT Downside Variance to its closest peers:
| T | 1.529997233524643 |
| GRAB | 7.12 |
| CDNS | 5.64 |
| VIASP | 1.7 |
| US70082LAB36 | 0.99 |
Timing is everything, especially when it comes to investing. As January approaches, AT&T (NYSE: T) investors might find themselves at a crossroads, considering the stock's technical indicators. With a 52-week high of 24.03 and a current price hovering around 22.97, there's a potential upside that could be enticing for those looking to capitalize on short-term movements. However, the company's current ratio of 0.62X suggests a need for caution, as it indicates limited liquidity to cover short-term liabilities. Additionally, the telecom giant's operating margin of just 0.24% reflects tight profitability, which could influence investor sentiment as the new year unfolds..
Momentum Analysis of ATT suggests possible reversal in January
AT&T Inc.'s recent improvement in its risk-adjusted performance to 0.08 indicates a slight enhancement in balancing risk and return. However, this doesn't guarantee a trouble-free path ahead. Momentum analysis suggests that while the stock has shown some resilience, there could be a price dip as January approaches. Investors should remain cautious and factor in this potential reversal when strategizing, as the current momentum may not hold in the short term. As of December 27th, AT&T's mean deviation stands at 0.9454, with a risk-adjusted performance of 0.0767.
Beyond fundamental indicators, technical analysis provides tools to explore AT&T's technical drivers and their interconnections.As we look at AT&T's prospects, it's clear that the stock presents a mixed bag of opportunities and challenges. With an analyst target price estimated at **$16.85**, there's a cautious optimism surrounding its potential, especially considering the analyst overall consensus leans towards a 'Buy'. However, the valuation market value stands at **$22.96**, suggesting that the stock might be trading above its perceived intrinsic value. Investors should weigh these factors carefully, considering both the potential for growth and the risks involved. Ultimately, AT&T may still have some surprises in store, but a prudent approach would be to keep a close eye on market developments and analyst updates as the year unfolds..
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of ATT Inc. Please refer to our
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