Is AT&T Stock a Buy After Falling to a 33-Year Low?

Shares of AT&T (T) sank to a 33-year low on Tuesday and are down more than -20% this year.  AT&T and other telecom stocks plunged after the Wall Street Journal last week reported that AT&T, Verizon Communications (VZ), and other telecom giants have left a network of cables covered in toxic lead that stretches across the U.S., under the water, in the soil, and on poles overhead.  The potential risk of liabilities over lead-clad cables in parts of AT&T’s nationwide network and the uncertainty over the size of the cleanup costs have hammered the stock. 

According to Moody’s Investors Service, AT&T is the most exposed company to the lead-clad cable issue and warns of “very significant” potential costs to remove the old wires. The worries over the lead-cable issues are also raising concerns about whether AT&T can maintain its dividend payments, which is deterring buyers from jumping into the stock.  Aptus Capital Advisors said, “Don’t go dumpster diving here,” as it sees little room for AT&T shares to move higher in the near term.