The telecom sector is pretty mature at this point, and while it is a highly competitive market for the leading companies in the sector, the barriers of entry are tremendous so the leaders do not have to worry about new competitors showing up. AT&T Inc. (T) has been rising over the last month, and shares are currently trading at a reasonable valuation with a P/E of 18.0. Telecom is low growth due to its maturity, but AT&T has grown earnings by 5.0% per annum over the last five years, and analysts expect average annual earnings growth of 6.7% for the next five years. The stock has trended higher over the last month, but analysts expect additional gains. T is now trading at $38.38, and analysts have an average price target of $41.98 on the stock, suggesting 9.4% upside potential.
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