AT&T Stock Has Been Quietly Rallying Since the Start of July. After a Strong Q2, Is It Due to Soar Even Higher?
2026-07-27 20:37
•David Jagielski, Cpa •The Motley Fool
•••• ••••• Axe Capital view
AT&T Rally: What It Means for SA Investors
AT&T’s strong Q2 and cheap valuation defy fears of SpaceX disruption, offering a solid case to watch, especially given local currency stability.
AT&T’s 18% rally since July surprised many, including me. The company’s solid Q2 numbers—with revenue growth and strong internet and wireless customer additions—show resilience that the market seemed to overlook earlier. Trading at just 10 times forward earnings and offering a juicy 4.6% dividend, AT&T looks undervalued compared to global peers. For South African investors, this matters because the USD/ZAR stuck in the mid-18s means corporate earnings in hard dollars translate into rand gains fairly well. I’d watch this name closely, especially if the rand holds firm or strengthens, as it boosts the effective yield and return in rands. However, the risk is that SpaceX could still disrupt in ways not yet clear or that US interest rates spike again, squeezing valuations across telecom. For now, the fear seems overdone, and patience could pay off. this is just my opinion and not financial advice
Watch AT&T but avoid rushing in—wait for any pullbacks or clear signs of USD/ZAR stability before buying modestly. Avoid speculative bets like SpaceX given operational struggles.
- AT&T
- USD/ZAR
- SpaceX could still meaningfully disrupt telecom pricing or infrastructure
- US interest rate hikes could pressure telecom valuations and the rand
6/10
AT&T stock has rallied 18% since early July as SpaceX struggles, recovering from earlier concerns about competitive disruption. The company posted solid Q2 earnings with $31.6B in revenue and strong customer additions (646K internet net adds, 432K postpaid phone net adds). Trading at 10x forward earnings with a 4.6% dividend yield, analysts suggest the stock has further upside potential.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: David Jagielski, Cpa
Categories: Rates, Equities, Earnings, Capital Returns
Tickers: T, TBB, TPA, TPC, SPCX
Sentiment: Mixed - Strong Q2 earnings with revenue growth and robust customer additions in both internet and wireless segments. Stock rallying 18% since July with attractive valuation at 10x forward earnings and high 4.6% dividend yield. Market concerns about SpaceX competition appear overblown. Stock has crashed 34% since early July, struggling operationally. Initial market concerns about its competitive threat to telecom sector appear to have been overreacted, but the company's recent poor performance validates investor caution.
Keywords: AT&T earnings, Q2 results, stock rally, SpaceX competition, dividend yield, telecom stocks, customer growth, valuation
Insights:
- T: Positive: Strong Q2 earnings with revenue growth and robust customer additions in both internet and wireless segments. Stock rallying 18% since July with attractive valuation at 10x forward earnings and high 4.6% dividend yield. Market concerns about SpaceX competition appear overblown.
- TBB: Positive: Strong Q2 earnings with revenue growth and robust customer additions in both internet and wireless segments. Stock rallying 18% since July with attractive valuation at 10x forward earnings and high 4.6% dividend yield. Market concerns about SpaceX competition appear overblown.
- TPA: Positive: Strong Q2 earnings with revenue growth and robust customer additions in both internet and wireless segments. Stock rallying 18% since July with attractive valuation at 10x forward earnings and high 4.6% dividend yield. Market concerns about SpaceX competition appear overblown.