AT&T stock is down 16% this year and trades near its 52-week low, at a forward P/E of about eight based on analyst expectations, as investors worry that SpaceX's plan to make Starlink a major mobile carrier could disrupt telecom. Verizon CEO Dan Schulman told investors the effort would likely cost hundreds of billions of dollars and take at least four years, and the service would look and feel like other networks. AT&T reported third-quarter revenue of $32.3 billion, up 5.3% year over year, its best consolidated service revenue growth in more than four years. The stock's yield is 5.3%, close to five times the S&P 500 average of 1.1%. The author argues the market may have overreacted to the Starlink risk and that the low valuation and dividend could offer significant value.
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