AT&T Stock Has Been Quietly Rallying Since the Start of July. After a Strong Q2, Is It Due to Soar Even Higher?

AT&T has rallied 18% since early July, recovering from earlier concerns about competitive pressure as SpaceX's Starlink faces operational challenges. The telecom posted Q2 revenue of $31.6 billion alongside strong subscriber momentum: 646,000 internet net adds and 432,000 postpaid phone net adds.

The stock now trades at 10x forward earnings and offers a 4.6% dividend yield. Analysts cited by The Motley Fool see further upside potential from current levels, pointing to the combination of subscriber growth and valuation compression as catalysts.

The July rally marks a sharp reversal for AT&T, which had been pressured by fears that satellite-based internet providers would erode its traditional wireline and wireless customer base. The competitive dynamics appear to be shifting as SpaceX encounters growing pains in scaling its service.

AT&T's postpaid phone additions—a key metric for wireless service quality—demonstrate the company is holding market share in its core business even as it expands fiber internet penetration.