Investors seek deep value in ‘too cheap’ telecom shares

Some investors are scooping up shares of beaten-down telecommunication network stocks, betting that companies like AT&T and Verizon offer value despite cutthroat competition and muted prospects for revenue growth.

While the S&P 500 is up 24.6% so far this year, the three major U.S. telecom stocks have been going in the opposite direction. AT&T shares are off nearly 13% in 2021 and near their lowest level in more than a decade. Verizon Communications shares have fallen about 10%, while smaller rival T-Mobile US is off around 9%.