|Day's Range||11.24 - 11.24|
Much has been made about the loss of two of its most popular shows, but over time, losses such as these will become less important.
Netflix will spend $15 billion on content this year alone—up from $12 billion last year. Some analysts started to sound the alarm about Netflix’s spending.
When it comes to investing and picking stocks, I take a three step approach.First, the fundamentals -- the numbers and long-term growth prospects have to check out and warrant the present valuation. Second, the optics -- there has to be some behavioral reason out there why investors will want to buy this stock over the next several months and years. And third, the technicals -- the chart has to make sense and support the bull thesis. * 10 Cheap Dividend Stocks to Load Up On In this gallery, we will focus on that third component, the technicals. I have selected a group of high-quality stocks which check off the first two boxes and hit a home run on the third box, meaning that they all have really good charts which support the bull thesis.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWithout further ado, let's take a look at a list of seven stocks to buy with great charts, and favorable fundamentals and optics, too. Stocks to Buy With Great Charts: Facebook (FB)The chart for Facebook (NASDAQ:FB) stock has looked good all year long.After a secular decline in 2018, FB stock put in a bottom in December 2018. Since then, the stock has formed a nice uptrend over the past eight months, with a strong, upward sloping support line that has tested and held three times before -- each time when the stock's relative strength index tumbled towards oversold territory.We have a similar setup today. Facebook stock's RSI is tumbling towards oversold territory, and the stock is testing this multi-quarter support line. It appears like FB wants to hold this support line yet again, and if so, a big bounce could be just around the corner.The 2019 recovery in technicals for FB stock has been mirrored by a recovery in its fundamentals and optics. The fundamentals for FB stock have been rock solid all year long. User growth has remained steady. Revenue growth has remained robust. Margins are starting to rebound now that big data security investments are being phased out. Profit growth is coming back into the picture.Meanwhile, the optics have been similarly good all year long. Investors (and consumers) are forgetting or have already forgotten about the Cambridge Analytica scandal. This controversy moving into the rear-view mirror has lifted investor sentiment, which has helped push the stock higher over the past eight months.The fundamentals, optics and technicals all project to remain favorable for the foreseeable future. As such, the 2019 uptrend in FB stock is set to persist into the end of the year. AT&T (T)The chart on AT&T (NYSE:T) looks so good because this stock appears to be in the early stages of a technical breakout. The 20-day moving average has surged above the 50-day moving average. Both of those moving averages have surged above the 200-day moving average. All three of those moving averages are sloping upward (albeit only slightly on the 200-day).The last time these three things happened (20-day above 50-day, both above 200-day and all three with a positive slope) was back in early 2016. T stock essentially proceeded to rally from under $35 to nearly $45 in 2016.Further, the stock has formed a very strong, upward sloping support line since putting in a 52-week low during the late 2018 selloff. * 5 Cheap Stocks to Buy Now That the Fed Cut Rates The fundamental bull thesis lines up with the technicals here. AT&T is a telecom giant which has struggled with wireless pricing competition and wired cord-cutting over the past several years. But, in 2020, those headwinds should be replaced by tailwinds. Specifically, the wireless business will get a big boost from the 5G boom, while cord-cutting headwinds should be offset by streaming growth through the 2020 launch of content-packed HBO Max.As such, the fundamental bull thesis on T stock looks equally good as the chart at this moment in time. Chegg (CHGG)The chart for Chegg (NYSE:CHGG) looks good simply because the stock has been so strong for so long, even amid massive market turbulence over the past year.The secular uptrend in CHGG stock really started in early 2017. Ever since, CHGG stock has been up over 400%. More impressively, the stock hasn't had many major drawdowns during that stretch. Since 2017, the stock has tested its 200-day moving average only once -- during the late 2018 selloff when the markets briefly entered a bear market. Outside of that, CHGG stock has been on a solid, straight-line uptrend since early 2017.The fundamentals supporting CHGG stock are so good, that it's no wonder why the stock has been on such a winning trajectory. Chegg has created a digital education platform which high school and college students everywhere don't just want, but need in today's internet-dominated world (and they are willing to pay for it). As such, Chegg's subscribers have grown at a roughly 40% clip over the past several years, while revenues have grown at a nearly 45% clip. Pretty much all of that revenue is subscription-based, so it's annually recurring, and it's also very high margin.Chegg is really just getting started on its high-growth, high-margin growth narrative. Chegg only has around 3 million subscribers. There are over 35 million high school and college students in the United States alone. Consequently, the company's revenues and profits will continue to trend significantly higher over the next several years. As they do, CHGG stock will stay on this long-term winning trajectory. Under Armour (UAA)The chart on Under Armour (NYSE:UAA) looks good here because its technicals are showing that you have a way oversold stock due for a big reflex rally.Long story short, the relative strength index on UAA stock has dropped to 20, which is well into oversold territory, while the price is now testing a long-term support line. The last time this combination happened (oversold RSI with test of long-term support line) was back in late 2018. The stock proceeded to bottom and then rally more than 20% over the following month.The fundamentals here also support the idea the UAA stock is due for a bounce-back. The big drop in Under Armour stock is due to two things. First, the company reported underwhelming earnings at the end of July. Second, the U.S. has threatened to impose new tariffs on China.But, those underwhelming earnings are now fully priced into UAA stock, and one could very reasonably argue that the stock is now undervalued relative to its long-term growth prospects. At the same time, the U.S. tariff threat seems more like a chest puff than anything else -- given that many of the tariffs have actually been delayed -- so trade tensions should de-escalate over the next few months. * 7 Safe Dividend Stocks for Investors to Buy Right Now Consequently, the fundamentals and optics here imply that UAA stock will reverse course soon. The Trade Desk (TTD)The chart for The Trade Desk (NASDAQ:TTD) looks good mostly because you have a long-term winning stock which has a well-defined and strongly upward-sloping support line. And the stock is getting ready to test that support line soon -- implying that a bounce could be around the corner.Specifically, ever since early summer 2018, TTD stock has essentially tripled, and in so doing, has only tested its 200-day moving average once. Further, in 2019, The Trade Desk stock has established a strong, upward-sloping support line which has held four times over the past nine months. TTD is gearing up to test this support line again amid broader market weakness. If the stock holds this support, a big bounce could be around the corner.Much like Chegg, it's no wonder that TTD stock has such a great chart, given that the fundamentals underlying TTD are equally robust.The Trade Desk is the leader in the programmatic advertising world. Programmatic advertising is the future of advertising. It is essentially the convergence of the automation and data-driven trends into the ad world, wherein computers and data-driven algorithms programmatically allocate and spend.Right now, only a small slice of the global ad spend pie is transacted programmatically. Eventually, given that data and automation are the future, pretty much every ad dollar around the world will be transacted programmatically. Thus, as the ad world pivots into programmatic advertising, The Trade Desk will benefit from robust ad spending and revenue growth. Margins will improve with scale, and profit growth will be doubly robust.Net net, then, The Trade Desk is supported by secular growth drivers which ultimately imply that TTD stock will run higher long term. Wayfair (W)The chart on Wayfair (NYSE:W) looks good because you have a long-term winning growth stock that has a history of both sharp selloffs, and sharp rebounds from those selloffs. W stock is currently in the midst of one of those selloffs, and is technically positioned for a big rebound rally.Specifically, the relative strength index on Wayfair stock has recently plunged to just over 20 -- well into oversold territory. Wayfair's RSI has taken a deep dive into oversold territory three times before since January 2018. Each time, the stock bottomed shortly after the RSI entered oversold territory, and proceeded to stage a huge comeback rally over the subsequent few weeks or months.The company's fundamentals support the technicals here in saying that Wayfair stock is due for a big recovery rally.Wayfair stock has been killed over the past few months because of a few things, including poor macroeconomic conditions, a bad third-quarter guide and a convertible note offering. All of this is really just noise. For all intents and purposes, Wayfair is a consumer-driven growth company, and the consumer globally remains fairly healthy, especially in the U.S. Just look at this red hot July retail sales report. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What Secular tailwinds in the e-commerce space remain healthy, and lower rates globally should promote more big ticket purchases -- like home and home furnishing purchases.Net net, the core fundamentals here remain solid. As such, once near-term macro noise passes, W stock should bounce back from today's oversold levels. Adobe (ADBE)There is no such thing as a "perfect" chart. But, the chart for Adobe (NASDAQ:ADBE) comes pretty close. Ever since 2012 -- when Adobe pivoted into a cloud, software as a service model -- ADBE stock has taken off and has not looked back. Every few months, the stock will test its 200-day moving average. Every time, the stock largely holds that level. And, every time, the stock bounces back and moves higher, and the 200-day moving average moves higher too.In other words, this stock has been on a seemingly unstoppable uptrend over the past seven years.Adobe checks off every box you'd want a growth stock to check off.Big revenue growth? Check -- 20%-plus revenue growth in each of the past several quarters. Secular demand drivers? Check. The world is becoming more visually obsessed, and as it does, consumers and enterprises alike are increasingly using Adobe's visually-focused solutions. Limited competition? Check. Adobe has so little competition in the creative solutions space that the average Joe would be hard-pressed to name an Adobe alternative. Big margins? Check. Adobe's subscription business runs at 90%-plus gross margins. Revenue visibility? Check. Adobe collects about 90% of its revenue form annually recurring subscriptions.So long as Adobe continues to check off all those boxes -- and the global economy staves off a recession -- ADBE stock should continue to trend higher.As of this writing, Luke Lango was long FB, T, CHGG, UAA, TTD, and ADBE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post 7 Stocks to Buy With Great Charts appeared first on InvestorPlace.
[Editor's note: "10 Best Stocks to Buy and Hold Forever" was previously published in July 2019. It has since been updated to include the most relevant information available.]In a market environment that overwhelmingly encourages constant activity by investors who seemingly want to double their money every week, a discussion of stocks to buy and hold forever seems comically out of place.And yet, for better or worse, that's the mindset all of us should adopt when deploying most of our investing capital. More often than not, the more you trade, the worse you end up doing.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt has been said (and verified) that 95% of true "day traders" -- the most aggressive and active of all market participants -- end up losing money by being too active for their own good. Conversely, the fact that Warren Buffett's favorite holding period is "forever" and how he's got a track record most investors would envy is just as telling. * 10 Cheap Dividend Stocks to Load Up On With that as the backdrop, here's a rundown of 10 stocks to buy and hold forever … or at least until something significant changes with your life plans or the companies themselves. AT&T (T)Dividend Yield: 5.% Year-to-date gain: 20%Calling a spade a spade, shares of telecom giant AT&T Inc. (NYSE:T) haven't been easy to own in a while. The stock is down from its mid-2016 peak, while most other stocks are well up for the timeframe.Source: Shutterstock The impasse has been an increasingly-tougher wireless and broadband market. But now that it's acquired media outfit Time Warner Inc (NYSE:TWX), a turnaround might have begun.If your intended timeframe really is "forever" though, a tough couple of years is nothing … particularly considering you're collecting a healthy dividend yield on your position's current value.More than that though, this is a telco name with a lot of clout, and a little more than $50 billion in the bank. Alphabet (GOOGL, GOOG)Dividend Yield: N/A Year-to-date gain: 12.7%Fans and followers of the company will likely know that Google parent company Alphabet Inc (NASDAQ:GOOGL, NASDAQ:GOOG) beat Q4's earnings estimate, posting $12.77 per share.Source: Shutterstock What got lost in the shuffle is how operating margins fell to 21 % from last quarter's 24%.Appreciated or not, Alphabet is a profit and revenue growth machine that has earned its spot on a list of "forever" stocks to buy. It may not always beat estimates, but it does always increase its numbers. * 10 Cheap Dividend Stocks to Load Up On That's because it keeps finding a way to serve as the middleman for about 70% of web searches done on desktops, and boasts being the preferred search engine for about 90% of the queries made via a mobile device.If it was going to be toppled, we'd see evidence of it by now. 3M (MMM)Dividend Yield: 3.67% Year-to-date gain: -18%In an era where complicated companies are shedding disparate parts of themselves so each arm can be hyper-focused on doing one thing exceedingly well, 3M Co (NYSE:MMM) is something of an outlier.Source: Shutterstock It offers everything from office supplies to healthcare products to the power transformers you see perched on top of power-line poles.It's wild mix that seems to work for 3M though, giving the company something to sell regardless of the economic environment.The clincher: 3M has managed to pay and increase its dividend every year going all the way back to 1977. Walmart (WMT)Dividend Yield: 1.88% Year-to-date gain: 21%Yes, the advent of Amazon.com, Inc. (NASDAQ:AMZN) has proven problematic for the world's biggest retailer, Walmart Inc (NYSE:WMT).Source: Shutterstock Rumors of Walmart's death at the hands of Amazon, however, have been greatly exaggerated.After being knocked over a few years ago, the company has regrouped, having figured out a way to fight the ever-growing reach of its online rival. The evidence? Last quarter's revenue, excluding currency fluctuations, jumped 2.9%. * 10 Cheap Dividend Stocks to Load Up On While it has been an ugly battle at times, Walmart has finally learned how to compete with Amazon.com. The fact that it can leverage its stores to do so only bolsters the bullish case. Southern Co (SO)Dividend Yield: 4.49% Year-to-date gain: 30%No list of stocks to buy and hold forever would be complete without a utility stock. In good times and bad, consumers almost always pay their electricity bill.Source: Shutterstock And, even though margins are thin and power providers don't have a ton of pricing power, they have little competition in most markets. Most requests for rate hikes are also approved without question.To that end, Southern Co (NYSE:SO) is one of the top picks of the litter.Southern serves nine million customers, mostly in the south, although it's represented in most of the major regions of the United States. More important, Southern Co has dished out stunningly consistent (even if tiny) profit growth, setting the stage for equally consistent dividends. It has not failed to increase its annual payout since the late 90's. Johnson & Johnson (JNJ)Dividend Yield: 2.9% Year-to-date gain: 1.15%As advanced as we've become as a society, the need for medicines, surgical products and simple healthcare solutions like Band-Aids and Tylenol is never going to go away.Source: Shutterstock That means Johnson & Johnson (NYSE:JNJ) -- which maintains a bigger product portfolio than most investors realize -- will always have something to sell to someone.That being said, don't think for a minute that a play on J&J is capitulation in the search for respectable growth. The company isn't just about treating tummy troubles and selling no-tears baby shampoo. * 10 Cheap Dividend Stocks to Load Up On It still operates a pharmaceutical arm as well, with its pharma operational revenue jumping 4.4% year-over-year last quarter, Berkshire Hathaway (BRK.B, BRK.A)Dividend Yield: N/A Year-to-date gain: -2%If the Warren Buffett mindset is the underlying philosophy in play here, why not go straight to the source and buy a piece of the fund he built from the ground up? That's Berkshire Hathaway Inc. (NYSE:BRK.B, NYSE:BRK.A).Source: Shutterstock Sure, in his most recent letter to shareholders, the Oracle of Omaha said he's struggling to find new companies at a "sensible purchase price," which is the life-blood of the organization's growth. There's also the stark reality that the 87-year-old Buffett is increasingly less involved with Berkshire Hathaway. That separation is only going to widen as time marches on.Still, he has more than proven his way works for the long haul. Over the course of the past half-century, Berkshire stock has performed about twice as well as the S&P 500 has. Waste Management (WM)Dividend Yield: 1.73% Year-to-date gain: 33%There's an old adage … the only two sure things in life are death and taxes.Source: Shutterstock It's a humorous point about the limited nature of human life and the far-reaching power of the IRS. But, it's not necessarily a complete cliche. There's a third certainty. That is, as long as people are living on the planet earth, they'll be creating garbage to shuttle to their nearby landfill. Some of the best stocks to buy and hold are companies that haul that garbage away.Enter Waste Management, Inc. (NYSE:WM), which runs garbage-pickup services for 21 million North American customers. Although its top and bottom lines ebb and flow, the bigger trend for both is pointed upward. * 10 Cheap Dividend Stocks to Load Up On Look for more of the same too. As CEO Jim Fish pointed out last year, "The babyboomers are coming into a period of heavy medical spend. All of our parents are aging and spending more on medical spend. There is medical waste generated from that, we are in that business. The industrial economy is important to us.Whether it's through repatriation from the new tax law, or just through the fact the U.S. and Canada are great places to do business and the industrial economy is showing some signs of life, we are a big industrial player on the back-end of the cycle." American Water Works (AWK)Dividend Yield: 1.61% Year-to-date gain: 37.4%Perhaps just as certain as death, taxes and the creation of trash, as long as people are alive they're going to need water to survive. That puts a water utility name like American Water Works Company Inc (NYSE:AWK) in the catbird seat. Reliability and demand make water utilities safe stocks to buy when others seem sketchy.Source: Shutterstock Much like electricity providers Southern Company, American Water Works Company -- which offers water and sewer services to 15 million people in the United States -- is rarely told no when it wants to raise rates.Water service prices have risen at above-inflation rates for the past several years, and American Water Works Company has benefited from that industry-wide trend. It's not apt to change anytime soon. Colgate-Palmolive (CL)Dividend Yield: 2.40% Year-to-date gain: 21%Last but not least, while the purchase of things like cars are cyclical, and the automobile industry itself is subject to constant reinvention, there are some consumer goods people just buy over and over again without a second thought. When it comes to the best stocks to buy and hold, you just can't forget consumer staples.Source: Shutterstock Among those often-repurchased items are Colgate toothpaste, Palmolive dish soap, Speed Stick deodorant and Cuddly fabric conditioner.Yep, they're all made by Colgate-Palmolive Company (NYSE:CL), though they're only a small sampling of the brands you'll find under the company's umbrella. * 10 Cheap Dividend Stocks to Load Up On Those who know the Colgate-Palmolive story well will know the company has gotten into some sloppy spending habits, crimping margins more than most shareholders would like. That's starting to change, however, with a serious and rather impressive cost-cutting initiative. The benefits of that work could last years, if not decades.As of this writing, James Brumley hold a long position in AT&T. You can follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for June * 7 Stocks to Buy From One of America's Best Pension Funds * 4 Consumer Staples Stocks for Both Income and Growth The post 10 Best Stocks to Buy and Hold Forever appeared first on InvestorPlace.
Netflix (NASDAQ:NFLX) stock has fallen as forces from both within and outside of the company weigh on the equity. The streaming giant has long benefited from a strategic vision that created and bolstered its industry. This has led to gains for NFLX stock of nearly 300 fold since its 2002 IPO.Source: Riccosta / Shutterstock.com However, this industry has now become more crowded. Netflix, once on the cutting edge of the streaming content industry, now struggles to remain relevant in the business that it created. Between the rising burden of content costs and the overall stock market pointing to a possible recession, Netflix stock appears poised to keep falling. The Long Honeymoon for NFLX Stock Has EndedIn a recent article on Netflix stock before it reported earnings, I urged investors to turn cautious due to the company's increased competition. Soon after, a disappointing report took NFLX down by about 10.3% in the following trading session.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIts last earnings release saw it fall, but not because of earnings. Profits actually exceeded Wall Street estimates. It lost value due to the slowing rate of subscriber growth. The company reported 2.7 million added subscriptions when Wall Street had predicted an increase of 5 million. * 10 Cheap Dividend Stocks to Load Up On Subscriber growth will likely continue to suffer. With Disney (NYSE:DIS) starting its own streaming service, many of the site's popular programs transition from company asset to competition. Moreover, Netflix stock faces a growing threat from peers such as Amazon's (NASDAQ:AMZN) Prime Video, a new offering from Apple (NASDAQ:AAPL), AT&T's (NYSE:T) WarnerMedia and the streaming service from Comcast (NASDAQ:CMCSA).For years, Netflix stock commanded a premium valuation because it dominated the streaming industry it created. This decimated not only the video rental industry but also pay-TV. Now that the pay-TV outlets have established their own streaming platforms, Netflix's long honeymoon looks set to end.How much further this will bring Netflix stock down remains unclear. From a growth standpoint, this is not a case of a stock going from good to bad, but merely from great to very good. The forward price-to-earnings ratio has fallen to around 52. Profit estimates fell after the latest earnings report. Still, Wall Street forecasts 22% earnings growth this year and 73% next year. I have trouble labeling that valuation as "high" given these profit increases. Competitors Are Not the Only Threat to NFLXHowever, I see multiple compression continuing for other reasons besides the competition. The inverted yield curve that led to a recent market selloff points to a recession. This has served as a reliable indicator for decades. Investors have little tolerance for equities with high multiples in such trading environments.Furthermore, Netflix stock only remains profitable from a certain point of view. Massive content spending has made a key financial statement more like an "un-balance" sheet. The company spent $10.5 billion on original content over the last year. This is nothing new. However, in the previous year alone, long-term debt rose from $8.34 billion to $12.59 billion.This poses a tremendous burden on a company with only $6.11 billion in book value. Sadly, despite all of this spending, its original content budget remains smaller than that of Disney, NBCUniversal, and WarnerMedia.Deep-pocketed companies such as Disney and Apple can maintain this pace more easily than Netflix. Moreover, the falling stock price could lead the company to dilute Netflix stock more quickly to shore up its balance sheet. Given these pressures, I see only reasons to sell at these levels. Final Thoughts on Netflix StockIncreasing competition and pressure to spend on content will likely lead to more multiple compression for Netflix stock. The company continues to maintain high levels of revenue and profit growth. However, the company's rising peers have hurt Netflix in a more fundamental way. Rising debt levels indicate that Netflix may lose its ability to maintain the current pace of content spending. Despite expending $10.5 billion on original content, it lags behind many of its competitors.Moreover, the elevated stock price could lead investors to forget that Netflix is a $6.11 billion company with a $129 billion market cap. This points to a tremendous incentive to dilute Netflix stock to address the company's $12.59 billion in long-term debt.I expect Netflix to maintain a healthy growth rate as a company. However, NFLX stock looks poised to bear the costs of that growth. I recommend getting out now before these costs increase further.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Sell Netflix Stock for What's Becoming An 'Un-Balance' Sheet appeared first on InvestorPlace.
A move to what's called software-defined networking is bringing fresh ideas to AT&T; after a decision made nearly a half decade ago.
For those who are invested in or monitor AT&T (NYSE:T) stock, here are few interesting facts to chew on: For the first time since early 2017 -- more than two and a half years ago -- T stock's 20-day and 50-day moving averages are both solidly above the 200-day moving average. Want more? For the first time since 2016, all three of those moving averages are also sloping upward.Source: Shutterstock In other words, in 2019, T stock's 20-day moving average has broken above its 50-day moving average, both of those moving averages have broken above the 200-day moving average, and all three of those moving averages also have a positive slope. The last time a breakout like this happened? Early 2016. Then what happened to the AT&T stock price? The shares rallied from under $35 to nearly $45 -- essentially the biggest upward move this stock has made in the past decade.This is no coincidence. The fundamentals agree with the technicals here. Both are saying that AT&T stock appears to be in the early stages of a huge breakout rally which could materialize over the next 12 to 24 months.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs such, now seems like a good time to load up on T stock ahead of this breakout rally. Here's a deeper look. 5G Boom will Meaningfully Improve Wireless OperationsThe breakout bull thesis in AT&T stock rests on two big catalysts. The first of those catalysts is the forthcoming widespread roll-out of 5G connectivity. * 15 Growth Stocks to Buy for the Long Haul 5G promises to change the internet-connected world as we know it. On one hand, it's way faster and way better, so everybody and their best friend is going to want to upgrade to 5G connectivity -- and will be willing to pay up for that connectivity. On the other hand, it's so much better that it will enable an entire new generation of internet-connected devices, and the expand the capability of those devices.With respect to AT&T, 5G will do two critical things. One, it will increase AT&T's pricing power and yield higher revenue per connection. Two, it will increase the number of connected devices on AT&T's network. Higher revenue per connection plus more connections equals more revenue … and at higher margins, too.The 5G roll-out will take time, meaning this isn't a one-year tailwind. This is a multi-year tailwind. Over the next several years, then, AT&T's wireless business will benefit from improved revenue and margin trends -- and ultimately produce more profits than ever before. Those record profits will help spark a breakout rally in T stock over the next several quarters. Streaming Pivot will Meaningfully Improve Wired OperationsThe second of the big catalysts which should spark a big breakout rally in AT&T stock is that the company will finally embark on a viable streaming strategy in 2020.AT&T's forays into the streaming world to-date have not been all that successful. The company had DirecTV NOW, but that service has been losing subs over the past several quarters. HBO NOW and HBO GO have had some success, but each lacks the breadth of content necessary to become huge streaming services.In 2020, though, AT&T is set to finally make noise in the streaming market. Specifically, AT&T is launching HBO Max in Spring 2020. Here's how to think about this: HBO Max is to AT&T, what Disney+ is to Disney (NYSE:DIS). That is, HBO Max is AT&T's all-in-one streaming service which could help this company finally move past cord cutting headwinds. * 7 Safe Dividend Stocks for Investors to Buy Right Now Just consider all the content that HBO Max will reportedly have - all the HBO shows like Game of Thrones and Pretty Little Liars; classic shows which AT&T now owns thanks to the Time Warner acquisition, like Friends and Fresh Prince of Bel Air; premium cable programming from Cinemax; DC Universe movies; and additional content from consumer favorite channels like CNN, TNT, TBS, trueTV, The CW, Cartoon Network, Adult Swim, etc.In other words, thanks to the Time Warner acquisition, AT&T has amassed a content war-chest which is among the biggest, widest, and best in the industry. They are putting all that content into one streaming platform, and that streaming platform is set to launch next year.Will it have big demand? Probably. And that big demand should help turn the narrative around here, from a negative cord-cutting narrative, to a positive subscriber growth narrative. That narrative pivot should help push T stock higher over the next few quarters. Bottom Line on T StockAT&T stock has been a sluggish stock for several years. But, two big catalysts -- the 5G boom and an aggressive streaming pivot -- should breathe life back into this stock over the next 12 to 24 months.Indeed, the technicals are hinting that T stock is in the beginning stages of a multi-quarter breakout rally. The fundamentals will confirm this breakout over the next few quarters.As such, now looks like a good time to get bullish on T stock.As of this writing, Luke Lango was long T and DIS. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post It Looks Like 2 Big Catalysts are in Place to Spark an AT&T Stock Breakout appeared first on InvestorPlace.
As AT&T Inc. (NYSE: T) looks to lighten its debt, the Dallas-based company is getting ready to unload real estate properties across the midwestern and southern United States. A real estate auction company called Williams & Williams is set to offer 37 assets this fall for the Dallas telecommunications and media provider, according to a news release. The properties cover industrial and office space, and several have the “potential for significant redevelopment,” Williams & Williams said in the statement.
Qualcomm is committed to building a sustainable fifth-generation cellular network (5G), which CEO Steve Mollenkopf says will have a big impact on the American consumer.
In a time of transition amid new technology options for the health care industry, AT&T;'s Maria Lansing is helping the company's customers navigate changes that could shake up how care is delivered.
DETROIT, Aug. 15, 2019 /PRNewswire/ -- At AT&T1, we've invested more than $700 million in our Metro Detroit area wireless and wired networks during 2016-2018. "We're consistently looking for new opportunities to enhance coverage for our customers and FirstNet subscribers," said David Lewis, President of AT&T Michigan.
[Editor's note: This story was previously published in May 2019. It has since been updated and republished.]As telcos launch the first of the 5G networks, 5G stocks will become a focus. The technology will change wireless. How much speed it will add has become a point of controversy. Estimates from a few years ago predicted that 5G would be 1,000 times as fast as 4G.More recent estimates peg the improvement at 10 to 20 times 4G LTE. Whatever happens after launch, consumers should see a quantum leap in speed and reliability.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSuch speeds will lead to capabilities not possible today. For this reason, it becomes difficult to know whether innovations will come from one of the large companies or from the mind of an unknown inventor working in his garage. * 10 Stocks Under $5 to Buy for Fall Whatever happens, these 5G stocks to buy will likely be among the large companies that lead the way in the new networks, profiting from 5G while trading at reasonable valuations: Apple (AAPL)Although the latest version of the iPhone did not offer 5G capabilities, Apple (NASDAQ:AAPL) will become one of the more prominent 5G stocks in future years. As one of the primary innovators in the wireless market, Apple will likely continue to enjoy a substantial presence in this industry.Source: Shutterstock Warren Buffett has made Apple the largest holding in the Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) portfolio for a reason. AAPL stock trades at a forward price-to-earnings ratio of less than 14.Also, the stock shows a solid record on dividends. The current yield of 1.50% may not inspire investors. Still, the company has increased its dividend every year since it began paying dividends in 2012. If one keeps AAPL stock as a long-term holding, this dividend will probably become more important.Apple has not yet released a 5G iPhone. However, as soon as it enters the market, the iPhone will become a critical device for 5G service, and AAPL will become one of the more important 5G stocks. Its investors should benefit. AT&T (T)AT&T (NYSE:T) will become only one of three companies, now that it appears as if T-Mobile (NASDAQ:TMUS) and Sprint (NYSE:S) will get merger clearance, to offer 5G wireless service. This factor in itself makes AT&T one of the more important 5G stocks. Because of the tens of billions of dollars needed to build such a network, the company will probably not have to deal with additional competitors.Source: Shutterstock The company has struggled recently. Cord-cutting in the pay-TV business, a highly competitive wireless industry, and the costly 5G upgrade have weighed on the company.However, this offers a tremendous advantage to those who want to invest now. The recent struggles of the stock have taken its forward P/E to about 8.7. This comes to less than half of the five-year average P/E of about 18.Still, the biggest reason to invest lies in the dividend. Its annual dividend comes to a yield of ~6%, triple the S&P 500 average of 1.9%.Even better, the psychology that drives T stock insures this dividend will increase. The company has increased its dividend in each of the previous 34 years. For this reason, maintaining the price of T stock hinges heavily on these dividend increases. The increased revenues that will likely come from 5G will also ensure that the company can afford the dividend increases. * 15 Growth Stocks to Buy for the Long Haul With 5G beginning to become a revenue source, the company's fortunes should improve. Moreover, a single-digit forward P/E and a generous dividend make AT&T one of the more attractive 5G stocks. Cisco Systems (CSCO)Many will remember Cisco (NASDAQ:CSCO) as the company whose routers helped to provide internet service in the 1990s. Today, CSCO stock behaves more like an old-line industrial than a high-flying tech stock.Source: Shutterstock However, the company still offers critical internet infrastructure. Its products along with the stock's value and rising dividend should make CSCO one of the more compelling 5G stocks.Cisco employs what it calls a "Cloud-to-Client" approach to 5G. The company wants to transform networks end-to-end, making Cisco equipment a critical component in delivering 5G faster. This technology is designed to encompass every aspect of 5G into a seamless network, providing security and enhancing video optimization.In addition to 5G customers, Cisco also offers a compelling value proposition to new investors. Its stock trades at about 16.5 times forward earnings. Analysts expect about 5% revenue growth this year.Also, unlike the Cisco of the 1990s, this company also embraces dividends. Cisco paid its first dividend in 2011, and it has increased these payouts every year since. Today, CSCO stock pays an annual dividend which yields about 2.7%. Hence, Cisco stock offers a reasonable P/E and an above-average dividend yield that will probably rise on a yearly basis. With 5G revenues funding its profits, CSCO stock should hold investors in good stead for years to come. Intel (INTC)As the PC business, which had sustained Intel (NASDAQ:INTC) for decades, began its decline, the changing marketplace forced INTC to seek new lines of business.Source: Shutterstock As a result, Intel has embraced 5G by involving itself in the Internet of Things (IoT) and data centers. These two components should make Intel prominent among 5G stocks.Client computing still makes up Intel's largest revenue source. However, data center revenue grew 21% in 2018, compared with only 9% for client computing. The company warned data center growth might slow. Still, its high growth places data center revenue on track to become Intel's largest revenue source within a few years.By most accounts, INTC stock has become a bargain. If the consensus earnings forecast holds, Intel trades at a forward P/E of 9.8, well below the five-year average P/E of 15.75. * 7 Safe Dividend Stocks for Investors to Buy Right Now Also, the company has paid dividends since 2000. It has increased them in most of the years since, and every year since 2014. Today, this 5G stock maintains a $1.26 per share annual dividend that yields around 2.75%. With a low valuation and a new company identity defined around 5G, I see Intel becoming a popular choice among 5G stocks to buy. Nokia (NOK)Many remember Nokia (NYSE:NOK) as a one-time leader in cell phones before the smartphone pushed its phones aside. As a result, the company redefined itself over the last few years.Source: Shutterstock Although it finally developed its own smartphone, NOK has taken its place among 5G stocks mostly as an equipment provider, furnishing wireless carriers with the hardware necessary to provide 5G services to their customers.Nokia signed a $3.5 billion multi-year agreement with T-Mobile. Under the terms of this deal, Nokia will provide T-Mobile with end-to-end 5G technology, which includes software and services, along with Nokia's hardware. So far, this stands as Nokia's largest 5G deal. I think this will lead to more 5G deals in other countries, bolstering NOK stock.Best of all, I do not think Wall Street yet appreciates the fact that Nokia has redefined itself. Although NOK lost a small amount of money in 2018, the stock looks poised to return to a path of earnings growth in the future. NOK currently trades at about 13 times its estimated 2019 earnings.The company will also pay stockholders well to wait for some appreciation. The company's 24 cents per share annual dividend comes to a yield of about 4%. While this dividend has fluctuated over the years, sustained profit growth makes it more likely the dividend will rise than fall. NOK stock also trades more than 80% below its 2007 high. If it gains more prestige among 5G stocks, I think it could return to its old highs within a few years, or perhaps beyond.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Best Dividend Stocks to Buy for Every Investor * 7 Catalysts That Will Send Marijuana Stocks Soaring in 2019 * 8 Risky Stocks to Watch as Earnings Season Kicks Off The post 5 5G Stocks to Buy That Will Stream Higher Profits for Investors appeared first on InvestorPlace.
Automated, programmable and intelligent bare-metal cloud operations to speed new service delivery HOPKINTON, Mass. and DALLAS , Aug. 15, 2019 /PRNewswire/ -- News summary: Dell Technologies and AT&T to: ...
iQIYI's (IQ) second-quarter 2019 results are expected to benefit from solid content slate, expanding original content portfolio and partnerships.
After last week's trade banter between the U.S. and China, investors flocked to commodities and government bonds as safe havens from economic uncertainties.
Since I last wrote about the four best 5G stocks to buy as the trend heated up, the sector has touched new highs. The companies benefited from telecom companies rolling out 5G wireless. That trend is not only heating up, but is accelerating. AT&T (NYSE:T) will offer a fixed-wireless-access solution later this year, letting customers get 5G internet at home. Beating AT&T in the 5G race is Verizon (NYSE:VZ), which officially became the first major U.S. carrier to offer 5G cell service. * 15 Growth Stocks to Buy for the Long Haul Verizon's victory puts pressure on telecom firms to accelerate their investments in the 5G buildout -- or risk falling behind.Here are seven 5G stocks to help you build investments for the future as the rest of the sector keeps heating up.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 5G Stock to Buy: Ciena Corporation (CIEN)Source: Shutterstock Ciena Corporation (NYSE:CIEN) stock rebounded from near-$33 lows in May after reporting second-quarter results June 6. The company reported revenue growing by 18.5% to $865 million. CIEN stock's adjusted earnings per share was 48 cents. Although the company faced tougher year-over-year comparisons, investors bid the stock to yearly highs above $46. In the last few quarters, the company reported a growth rate a few points above the long-term average of 6%-8%. Beyond this year, growth will revert to that 6%-8% range. And EPS growth of 20% a year is sustainable.Ciena acquired TeraXion for $32 million in 2016, gaining control of its high-speed photonics components, which have enabled Ciena to unroll optical chipsets. This move also gave CIEN the execution capability around TeraXion's electro-optics portion of the drivetrain as well as the company's silicon photonics.The rollout of 5G had a positive impact on the CIEN stock's most-recent quarter. And Ciena is highly engaged with its customers, especially at the optical project level. With that level of involvement with the largest tier one companies in North America, expect revenue to grow extremely well for the foreseeable future.Assuming a reasonable five-year compound annual growth rate of 7.1%, CIEN stock has an upside of over 10%. Cisco Systems (CSCO)Source: Shutterstock Cisco Systems (NASDAQ:CSCO) stock's near-term growth will come from being the world's largest secure domain name system platform, though the data center is another source of core growth. Cisco has around 35 data centers that are growing monthly, as the company expands its cloud. It has 100 million daily users on its platform, yet the company wants to be a bigger player in 5G in the future.On July 9, Cisco announced that it would buy optical component maker Acacia Communications (NASDAQ:ACIA) for $2.84 billion. In doing so, the telecom equipment supplier will widen its addressable market in the 5G space. And because service providers will put upgrading to 5G on their roadmap, CSCO will have to upgrade its optical components, too. As global internet traffic triples into 2022, Cisco will have a way to sell the hardware customers need to support all that data movement. * 7 Safe Dividend Stocks for Investors to Buy Right Now Acquiring Acacia gives Cisco the needed expertise in metro, long-haul and undersea data movement. Previously, the company's optical portfolio covered only short-range data center connections.CSCO's integration of Acacia strengthens its positioning for 5G in the future. Acacia already makes many of the optical interconnect modules in Cisco's equipment. But in the future, the demand for high-speed interconnect will increase rapidly. Nokia (NOK)Source: Shutterstock Nokia (NYSE:NOK) stock broke out of the $5 trading range when it reported fiscal second-quarter results that beat consensus estimates. The company benefited from new 5G deal wins in the quarter. Helped by improving product competitiveness, the company now has an impressive 42 commercial 5G deals and it is operational in nine live 5G networks. With the 5G rollout starting, Nokia recognized 5G revenue in the second quarter. Investors should expect that revenue recognition continuing to build in the second half of this year.Nokia is well-positioned to be a 5G player in the future. As Nokia sells 5G radio to customers, it is also selling other Nokia products. Not only that, but NOK is building its 5G business by converting all of its 4G LTE customers -- it has over 300 commercial 4G customers who need help transitioning to 5G over the next 10-20 years.Investors who gave up on NOK stock would have missed the stock rallying from $5 to nearly $5.80. In the last week, the stock traded down to the $5.20 range, creating an entry point. At a forward price-to-earnings ratio of 13, Nokia is not valued as a strong 5G player for the future. Markets are making a mistake ignoring this company's strong prospects.As many countries move quickly to deploy 5G, management may raise its guidance. Now, operators expect it will take 4-5 years after the initial rollout to get 5G deployed to 75% of their customers. That suggests Nokia's 5G growth acceleration is still in its early stages.It may also be a dividend discount: the multi-stage model suggests that Nokia stock is undervalued by 20%. NXP Semiconductors (NXPI)Source: Shutterstock NXP Semiconductors (NASDAQ:NXPI) has pivoted its business towards the automotive and 5G market over the last few years. Strong 5G deployment in the last few quarters assures the company's positioning in the space. Its second quarter, posted July 30, met consensus estimates. This is due partly to the benefit of a large mobile customer, but the higher revenue from the customer also led to lower deployment in the current Q3. To adjust for the uncertainties, NXPI lowered its Q3 revenue guidance to $2.21 billion-$2.27 billion. This is below the $2.35 billion estimated revenue.NXPI stock fell to as low as $96.11 by Aug. 5, only to recover somewhat when it closed recently at around $100. Management is bullish on the outlook for 5G but is assessing the potential near-term slowdown in the industry. With investor expectations lowered, investors have a chance to buy NXPI stock at a 15 times P/E and 11.3 times forward earnings. In doing so, shareholders are positioning themselves for the next wave of 5G spending. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What Currently, NXP Semiconductors is benefiting from the growth in multi-input and multi-output (MIMO) deployment, where customers are expanding their capacity associated with their installed infrastructure. In the future, customers will move to 5G deployments. And from there, they may upgrade that capacity through software deployments to facilitate 5G. So indirectly, MIMO is driving revenue higher in the short-term. And as 5G ramps up more strongly into 2020, investors should get rewarded within a year. T-Mobile (TMUS)Source: Shutterstock In the telecom carrier space, T-Mobile (NASDAQ:TMUS) stock is creating a bigger and bolder competitor through its Sprint (NASDAQ:S) acquisition. Odds of the merger improved after the U.S. Department of Justice gave the firms clearance for the deal. But first, Sprint must divest its pre-paid business and also sell its 800 MHz spectrum license.While T-Mobile expects to deliver $43 billion in synergies from the deal, the 5G efficiencies from the merger will interest investors most. Looking into the future, T-Mobile is committed to covering 97% of the U.S. population with 5G in three years. In six years, 99% of the population will get 5G coverage. This aggressive timeline is possible because T-Mobile will leverage its 5G network.Currently, T-Mobile is deploying a 600 MHz and millimeter wave spectrum, and the former will become the foundation for its nation-wide 5G network. Once 5G smartphones are available, the company will launch 5G on 600 MHz later this year.T-Mobile's growth will also come from its broadband business. It's goal is to reach 9.5 million in-home broadband subscribers by 2024. This complements the cost synergies, with $4 billion coming from the network division, $1 billion from sales, services and marketing, and $1 billion from the back office. With consistent customer growth and higher efficiencies ahead, it is no wonder that TMUS stock is in an uptrend in 2019. Verizon Communications (VZ)Source: Shutterstock Verizon, whose shares also offer a dividend yielding 4.3% based on recent stock prices near $56, is another 5G stock to buy for the future. Its focus on the fiber deployment gives it this edge. VZ stock now has fiber in 60 cities -- and is growing at 1,400 route miles per month.Verizon's capital expenditures will support the buildout of its 5G Ultra Wideband network. For the full year 2019, capital expenditure will be in the range of $17 billion-$18 billion.Verizon has launched 5G in nine markets and aims to be in 30 within the full-year period. More impressive is the speed that VZ's 5G Mobility offers now. Handsets may now run at 1.3-1.5 gig and average up to 2 gigs. Offering speeds that are significantly faster than 4G will encourage customers to upgrade.After VZ stock topped $61 in April and is down 9.4% from there, markets are not expecting much revenue growth from 5G. Still, analysts who cover VZ stock have a $61.67 price target. * 5 Cheap Stocks to Buy Now That the Fed Cut Rates Despite the conservative expectations investors have for Verizon, 2020 will be an important year for its 5G growth. 5G Home is limited to four markets right now but will continue to expand. As the company rolls out 5G Home customer premise (CP) equipment, it will see a positive contribution to revenue in 2021. Intel Corporation (INTC)Source: Shutterstock Intel Corporation (NASDAQ:INTC) is broadening its business beyond PC central processing unit chips. It believes its network infrastructure business will benefit from the positive future for 5G, so it is investing in networks. Already, this business grew 40% since 2014 from just over $1 billion in revenue to over $4 billion last year. INTC stock is hardly trading like a 5G growth play: The stock is valued at just around 10.8 times earnings.The global rollout of 5G is driving demand for "network cloudification." Intel has opportunity in the core network and at the edge. And Intel's 10 nm Snow Ridge system on a chip technology will power 5G-base stations early next year. Already, the company secured two large telecom equipment manufacturers with this architecture. By 2022, Intel forecasts having a 40% market share.During its second quarter, Intel decided to get out of the 5G smartphone modem business. It sold the unit to Apple (NASDAQ:AAPL). This is a critical turning point for Intel because the chip giant may turn its attention towards 5G networking instead.In the near-term, growth from the cloud business will be slow and in the single digits as customers begin transitioning to 5G. Later this year and in 2020, Intel expects its cloud business to grow at a faster pace. Gross margin will fall slightly and will bottom at 57% in 2021. And while a gross margin in the 60% range next year is driven by the 10 nm chip refresh, the 5G ramp-up will help its network business.As of this writing, Chris Lau was long NXPI and NOK. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Growth Stocks to Buy for the Long Haul * 5 More Cloud Stocks With Plenty of Potential * 5 Clean Energy ETFs to Buy for 2019 The post 7 5G Stocks to Buy Now for the Future appeared first on InvestorPlace.
BALTIMORE, Aug. 14, 2019 /PRNewswire/ -- At AT&T1, we invested more than $250 million in our Baltimore area wireless and wired networks during 2016-2018. In 2018, AT&T made wireless network upgrades throughout the Baltimore area, including adding new cell sites and upgrading existing ones. "Greater Baltimore is home to world-class colleges and universities, extraordinary hospitals, companies of all sizes, and entrepreneurs and innovators who work every day to keep our region strong," said Donald C. Fry, President and CEO, Greater Baltimore Committee.
Verizon stock usually is a dividend play, as are the shares of its rival AT&T.; But Verizon 5G lies ahead. Here's what various analyses say about Verizon as 5G wireless comes into play.
Two major U.S. carriers, AT&T and T-Mobile, announced this morning a plan to team up to protect their respective customer bases from the scourge of scam robocalls. The two companies will today begin to roll out new cross-network call authentication technology based on the STIR/SHAKEN standards -- a sort of universal caller ID system designed to stop illegal caller ID spoofing. Robocalls have become a national epidemic.
What’s the news: Today, AT&T and T-Mobile are delivering SHAKEN/STIR caller authentication technology that works across both their networks, an important step towards industry-wide call verification. T-Mobile (TMUS) and AT&T (NYSE:T) today began rollout of cross-network call authentication based on SHAKEN/STIR standards – another big step toward protecting consumers from unwanted robocalls.
AT&T (NYSE:T) stock has been on a steady uptrend in 2019. The shares closed yesterday at $34.86, up 16.7% for the year. From an income perspective, T stock is also a quality dividend stock with a current dividend of $2.04 yielding 5.92%.Source: Shutterstock Yet, despite T stock's 2019 gain -- it's beating the S&P 500 index's 14.8% YTD increase -- I am still of the opinion that AT&T is a buy at current levels, with plenty of upside in the coming quarters. Here are the factors that I expect to fuel the stock's momentum. Deleveraging and Free Cash FlowsAs of June 2018, AT&T debt had surged to $180 billion with leverage of 3.0. Flash forward a year and the company has reduced debt by $18 billion to $162 billion. By the end of 2019, AT&T expects to pare that debt to $150 billion with leverage shrinking to 2.5.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI believe that reduction in balance sheet stress is a key trigger for T stock's upside in the coming quarters. It is worth noting that the company's TTM (2Q19) free cash flow is at $29.1 billion. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What Even if free cash flow can be sustained around these levels, AT&T is well positioned to continue deleveraging at a rapid pace. At the same time, the company is positioned to increase dividends. Welcome ARPU ChangeAnother positive development that is likely to ensure healthy free cash flows is an expansion in EBITDA margin. The company's EBITDA margin increased to 37.6% in 2Q19 from 36.9% in 2Q18.The EBITDA margin expansion in the entertainment segment is a welcome change with premium video ARPU growth at 4.7% in 2Q19 as compared to a 5.2% decline in 2Q18. Cost management in the communications segment also aided EBITDA margin expansion. This explains the positive stock reaction even as revenue in the entertainment segment fell marginally.Coming back to free cash flows, if EBITDA margin expansion sustains, the FCF is likely to be higher in FY20. In addition, the management expects the capital intensity to decline in 2020 with relatively lower investment in content and network building. That will help in accelerating free cash flows as compared to 2019.Deleveraging and dividend growth should trigger stock re-rating and upside. The 5G Launch TriggerIt is expected that the global 5G market will reach $227 billion by 2025, growing at a CAGR of 111% during 2019-2025. Further, North America will have the largest market share of 44% by 2025. This presents a potential opportunity of $100 billion over the next seven years.AT&T has been gradually rolling out 5G with portions of 21 cities already covered. The company plans a nationwide roll-out in the first half of 2020.AT&T plans to reach 200 million people with its 5G network and subscriptions and devices would trigger revenue growth. However, AT&T is looking at businesses to drive profits than consumer subscriptions.It is very likely that focus on businesses will translate into higher EBITDA margins. On the other hand, relatively lower pricing for consumers would trigger volumes growth.Overall, AT&T is set to benefit having a first mover advantage.Even from an infrastructure perspective, FirstNet, which is the nationwide public safety communications platform, will help AT&T with the wider roll-out.AT&T expects to complete 80% of FirstNet by 2020 and the same infrastructure can be used to provide 5G coverage with a software upgrade. Therefore, the 5G roll-out can be faster and cheaper. Final Words on AT&T StockAT&T is well positioned to deliver robust free cash flows in the coming years and that will reward investors through dividend and AT&T stock repurchases. Deleveraging will also reduce the balance sheet stress and interest outflow. * 7 Stocks Under $7 to Invest in Now The launch of 5G network countrywide will provide another growth trigger for AT&T beyond 2020. It is likely that EBITDA margins will expand with the 5G roll-out. In particular, enterprise accounts will deliver profitability.HBO Max, which will be launching in spring 2020, also promises to deliver incremental growth with high quality original content. It is being reported that HBO Max can potentially shell out $1.5 billion to secure the streaming rights for The Big Bang Theory and Two and a Half Men. With ample free cash flows, HBO Max is likely to be on a content shopping spree.Considering these factors, I believe that AT&T stock is worth considering and the uptrend is likely to sustain in the coming quarters.As of this writing, Faisal Humayun did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Real Estate Investments to Ride Out the Current Storm * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk * 7 Safe Dividend Stocks for Investors to Buy Right Now The post AT&T Stock Should Power Higher as it Cuts Debt and Expands Margins appeared first on InvestorPlace.