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Despite turmoil overseas, the US economy continues to grow, increasing opportunities for domestically-focused companies.
Last week, JPMorgan Chase downgraded Verizon (VZ) stock from an “overweight” to a “neutral” with a 12-month price target of $62. This price target represents a potential upside of ~6.4% from its December 10 closing price of $58.27.
Dish Network (DISH) has seen falling fortunes this year, with its stock down 35% year-to-date. The reason why is simple: it’s continuing to lose satellite TV customers at a rapid rate. Dish is now betting big on the next generation of wireless technology, 5G.
AT&T’s (T) closing price on December 7 was $30.14. It’s going through what’s probably its toughest phase since the 2008 financial crisis, and it’s down 22.5% year-to-date as its Wireless segment faces growth challenges and it grapples with its multibillion-dollar acquisition’s struggle to take off. The stock is trading 4.5% above its 52-week low of $28.85 and 23.4% below its 52-week high of $39.33.
Nokia (NOK) recently announced a corporate structure reorganization that saw it create a new division to house its mobile and fixed networks businesses. While Nokia immediately named company veteran Tommi Uitto to oversee the mobile networks business, it said its head of the fixed networks business would be named in due course. Leaving this post unfilled for now could show Nokia is taking its time to appoint the best leader for the business, and it could also suggest that the company is placing a lot of importance on the fixed networks business.
How Are AT&T’s Performance and Valuation ahead of 2019? According to the data compiled by Reuters as of December 7, of the 32 analysts who follow AT&T (T) stock, 44% have given it “buys,” 50% have given it “holds,” and 6% have given it “sells.” Their 12-month median target price for AT&T is $34.50, implying a potential 14.5% upside to its market price of $30.14. Of the 30 analysts who follow Verizon (VZ), 43% have given it “buys,” while 57% have given it “holds.” No analysts have given it “sells.” On average, analysts have a median price target of $58.50 on the stock.
Nokia (NOK) has been expanding and enhancing its product portfolio to get ready for the 5G era, which in part explains why the company has been investing a big chunk of its revenue on research and development (or R&D) initiatives. It spent 20% of its revenue on R&D projects in the third quarter, more than Ericsson’s (ERIC) allocation of 17% of revenue to R&D in the same period.
Recently, AT&T (T) stock fell below its short-term (20-day) moving average, suggesting a bearish sentiment in the company. On December 7, AT&T stock closed the trading day at $30.14. Based on this figure, the stock was trading 1% below its 20-day moving average of $30.44, 4.1% below its 50-day moving average of $31.44, and 5.6% below its 100-day moving average of $31.94.
On December 4, Qualcomm (QCOM) launched a mobile phone processor called “Snapdragon 855” at its Snapdragon Technology Summit in Hawaii. The new generation of mobile chips will power the 5G phones in the United States by next year. The new Snapdragon 855 chip will act as a modem for smartphones to connect to 5G wireless data networks.
How Are AT&T’s Performance and Valuation ahead of 2019? As of September 30, AT&T’s (T) total debt was $183.4 billion compared to $164.3 billion at the end of December 31, 2017. The telecommunications company’s debt level increased significantly mainly due to its acquisition of Time Warner in mid-June.
E-commerce made up 10 percent of all retail sales in the second quarter of 2018 and totaled $6.22 billion on Black Friday alone. And a lot of online shopping is impulsive, not budgeted for or planned.
AT&T (T) has been investing heavily in capex to improve its network. The telecommunications company spent $5.9 billion on capex in the third quarter compared to $5.3 billion in the third quarter of 2017. For 2018, AT&T expects net capex of $22 billion.
About three years ago, Alphabet’s (GOOGL) Google subsidiary launched a mobile service business under the Project Fi brand. The business has been one of Google’s quietest—it has not been mentioned at Alphabet’s earnings conferences in the last year. It recently took on a new name, Google Fi, dropping “Project.” The business has also expanded to support more devices.
Last month, AT&T (T) released some initial guidance numbers for 2019. The company expects its adjusted EPS to rise in the low single digits in 2019. It expects to generate $26 billion in free cash flow next year. AT&T’s management has stated that the company’s discretionary cash flow after dividends will be used to pay down its huge debt balance.
Nokia’s (NOK) sales have mostly been on a decline in recent years, and the company is banking on the adoption of 5G connectivity to help it return to growth. To ensure that it can maximize its commercial opportunities in the 5G era, Nokia has been working on addressing its funding needs.
Alphabet's (GOOGL) Google division plans to accelerate the closure of its social network Google+ ahead of schedule, owing to another security flaw.
Some investors are fearing that the recent action in the stock and bond markets is signaling a recession may be nearing. If that's the case, there could be an unlikely market to hide out in this time: housing.
Let’s now compare Sprint’s (S) technicals with those of telecom peers. Recently, Sprint stock fell below its short-term (20-day) moving average, a bearish sign. On December 4, Sprint stock closed at $6.16, 0.8% below its 20-day moving average of $6.21, 1.6% below its 50-day moving average of $6.26, and 0.7% above its 100-day moving average of $6.12. In comparison, Verizon (VZ) and T-Mobile (TMUS) were trading 5.6% and 0.3% above their 100-day moving averages, respectively, while AT&T (T) was trading 3.8% below its average. Relative strength index
With the U.S. wireless telecom industry continuously evolving, the companies in the league are fighting it out to stay abreast of competition.
Of the 22 Reuters-surveyed analysts tracking Sprint (S) stock on December 4, 14 (~63%) recommended “hold,” five recommended “sell,” and three recommended “buy.” Their median target price of $6 for the stock implies a 2.6% downside over the next 12 months from its current price of $6.16.
The Zacks Analyst Blog Highlights: Vector Group, Archer Daniels Midland, McCormick, American Electric Power and Pinnacle West Capital
Investing.com - NutriSystem, Grubhub and Kratos Defense and Security climbed into the close Monday, underpinning a rebound in the broader market.
The United States and Australia have banned Huawei products from being used to build their 5G networks. According to a recent report by the Wall Street Journal, the United States has even gone the extra mile to ask friendly countries to shun Huawei products in their 5G network buildout. Huawei is a fierce rival of Ericsson (ERIC) in the telecom equipment vendor market.