AT&T (NYSE:T) — One of the most recognized brand names in the world, AT&T is expected to see gains in consumer wireless and broadband services. Its strong balance sheet, long-term customer relationships, and expanding profit margins should result in an increase in the P/E multiple of the stock along with an increase in earnings. Analysts estimate AT&T will earn $2.27 in 2011 and $2.53 in 2012.
The stock has a dividend yield of over 6%, and fundamental analysts have a price target of $34, which, if reached, would result in a total annual return of 18%.
Technically the stock has reversed from its 50-day moving average and flashed a buy signal from our internal indicator, the Collins-Bollinger Reversal (CBR), resulting in a six-month target of $36.