Valued at a market cap of $200.1 billion, AT&T Inc. (T) is a leading telecommunications and technology company based in Dallas, Texas. It provides a wide range of services, including wireless voice and data communications, broadband and internet services, and telecommunications equipment, catering to both consumer and business markets.

Companies worth $200 billion or more are typically classified as “mega-cap stocks,” and AT&T fits the label perfectly, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the telecom services industry. The company’s core strengths lie in its vast network infrastructure, broad customer base, and strong position as one of the leading wireless service providers in the U.S. Its extensive 5G and fiber networks give it a competitive advantage in delivering high-speed, reliable connectivity across both urban and rural areas.

This telecom giant is currently trading 3.8% below its 52-week high of $29.03, reached on Apr. 3. AT&T has gained 1.9% over the past three months, outpacing the iShares U.S. Telecommunications ETF’s (IYZ) marginal downtick during the same time frame.

In the longer term, T has rallied 53.3% over the past 52 weeks, outperforming IYZ’s 30.5% return over the same time frame. Moreover, on a YTD basis, shares of AT&T are up 22.7%, compared to IYZ’s 5.5% uptick. 

To confirm its bullish trend, T has been trading above its 200-day moving average over the past year, and has mostly remained above its 50-day moving average since last year, with some fluctuations. 

On Apr. 23, shares of AT&T closed up marginally after its Q1 earnings release. The company’s revenue of $30.6 billion improved 2% from the year-ago quarter and came in slightly above the consensus estimates. Higher mobility and consumer wireline revenues aided its overall top line. Moreover, the company experienced 324,000 postpaid phone net adds, indicating strong customer retention. It also added 261,000 new fiber customers, marking its 21st consecutive quarter with over 200,000 fiber net additions. Additionally, its adjusted EPS grew 6.3% year-over-year to $0.51 and came in line with analyst estimates. 

For fiscal 2025, AT&T expects its service revenue growth in the low-single-digit range, and projects adjusted EPS to be between $1.97 and $2.07.

AT&T’s outperformance looks pronounced when compared to its rival, Verizon Communications Inc. (VZ), which gained 7.2% over the past 52 weeks and 10.3% on a YTD basis. 

Looking at AT&T’s recent outperformance relative to its industry peers, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 28 analysts covering it, and the mean price target of $29.18 suggests a 4.5% premium to its current price levels.