Non-sexy stocks with the potential for sexy gains


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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Michael Fowlkes

Michael Fowlkes

Michael Fowlkes is a financial writer who has been with the Fresh Brewed Media family since 2004. Over the course of his tenure with Fresh Brewed Media, he has worn many hats, including portfolio manager, options analyst, and writer. Michael received his undergraduate degree from Virginia Tech in Accounting and got his start in finance working as a stock trader for six years at Chase Investment Counsel in Charlottesville, Va.

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