AT&T Inc. (NYSE: T) is scheduled to report its second-quarter financial results after the markets close on Thursday. This is one of the major telecom stocks that is benefiting from the most recent Federal Communications Commission (FCC) ruling. Although this stock has climbed a fair amount within the past year, it still pays out a $1.92 dividend (4.5% yield), which is impressive considering it has kept up with its gains.

The Thomson Reuters consensus estimates are $0.72 in earnings per share (EPS) on $40.63 billion in revenue. In the same period of last year, the company posted EPS of $0.69 and $33.02 billion in revenue.

After an outstanding first quarter from a stock price standpoint, this stock could be poised to go higher. This company is the world’s largest provider of pay TV, with TV customers in the United States and 11 Latin American countries. In the United States, the AT&T wireless network has the nation’s self-described strongest 4G LTE signal and most reliable 4G LTE. The company also helps businesses worldwide serve their customers better with mobility and highly secure cloud solutions.

Currently, shares are trading at a very cheap 14.3 times estimated 2016 earnings. Accordingly, the company looks to continue the expansion of its user base. Also strong product introductions from smartphone vendors have driven traffic while increasing device financing plans.

Some analysts think there is possible upside to the current Wall Street estimates, not only for 2016 but for 2017 as well due to higher segment profitability. They also point to the company’s positive commentary on free cash flow, in addition to improving video/broadband trends later this year, with single truck-roll and new converged offerings expected to be coming in October.

A few analysts weighed in on AT&T prior to the release of the earnings report:

• Jefferies reiterated a Buy rating with a $44 price target.
• Barclays reiterated a Buy rating.
• Deutsche Bank reiterated a Buy rating with a $45 price target.
• Robert Baird reiterated a Neutral rating with a $41 price target.
• Merrill Lynch reiterated a Buy rating.
• Davidson has a Buy rating with a $44 price target.

So far in 2016, AT&T has outperformed the broad market, with the stock up nearly 30%. Over the past 52 weeks, the stock has performed similarly.

Shares of AT&T were trading at $42.70 midday Thursday, with a consensus analyst price target of $41.04 and a 52-week trading range of $30.97 to $43.89.

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