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Is AT&T Stock Underperforming the Dow?

With a market cap of $195.1 billion, AT&T Inc. (T) is a global provider of telecommunications and technology services operating through its Communications and Latin America segments. It has grown into one of the world’s largest providers of wireless, broadband, and communication services.

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and AT&T fits this criterion perfectly. The company offers a wide range of consumer and business solutions, including wireless voice and data services, internet connectivity, and related devices.

 

Shares of the Dallas, Texas-based company have slipped 6.5% from its 52-week high of $29.79. The stock has increased 7.8% over the past three months, outpacing the Dow Jones Industrials Average's ($DOWI) 5% gain over the same time frame.

www.barchart.com

AT&T stock is up 12.2% on a YTD basis, outperforming DOWI’s nearly 3% rise. However, longer term, shares of the company have risen 4.6% over the past 52 weeks, lagging behind DOWI’s 13.4% return over the same time frame. 

Yet, the stock has been trading above its 50-day and 200-day moving averages since late January. 

www.barchart.com

Shares of AT&T rose 4.7% on Jan. 28 after the company met or exceeded all 2025 guidance and reported $16.6 billion in full-year free cash flow, up from $15.3 billion in 2024, while delivering adjusted EPS of $2.12 and adjusted EBITDA of $46.4 billion. Investors also reacted positively to strong operating momentum, including more than 1.5 million postpaid phone net adds, over 1 million fiber net adds, 42% convergence of fiber households, and Q4 2025 free cash flow of $4.2 billion, beating the prior year.

In contrast, rival Verizon Communications Inc. (VZ) has outpaced AT&T stock. VZ stock has soared 21% on a YTD basis and 14.1% over the past 52 weeks.

Despite AT&T’s underperformance relative to the Dow, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 28 analysts in coverage, and the mean price target of $29.63 is a premium of 6.3% to current levels.


On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

 

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