As expected, market volatility is on the rise in 2025. Many tech stocks carry high valuations following a massive bull market. That may not mean that the market’s overall rally is over. But it is a sign that investors may want to look for other sectors.
More importantly, it’s also a sign to look for fundamental indicators that a company is performing well. That can include increasing earnings and revenues, as well as growing its customer base.
When a company is growing its total subscribers, it can likely translate to increased revenue over time. Especially if it’s in an industry where customers pay a subscription fee.
That’s the case with telecom giant AT&T (T). They reported an increase in customers that exceeded expectations, and also beat on earnings.
That helped push shares higher on a brutal day for tech stocks. On an annualized basis, AT&T isn’t quite back to growth yet. But with a growth trend in place and shares trading at 11 times forward earnings, it looks like an attractive play for investors here.
Action to take: Value and momentum investors may like shares here, given their valuation and their current trend higher. Plus, at current prices, AT&T pays a 4.9% dividend.
For traders, the April $25 calls, last trading for about $0.48, could see high double-digit returns on a further trend higher over the coming weeks. Traders may want to take quick profits if shares move in-the-money.
Disclosure: The author of this article has a position in the company mentioned here, but does not intend to trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.