5 Low-Priced Blue Chip Stocks to Buy Now

2. AT&T Inc. (NYSE:T)

Number of Hedge Fund Holders: 74

Share Price as of June 17: $19.38

Analysts are recommending AT&T Inc. (NYSE:T) to investors in order to recession-proof their portfolios. On June 14, Wells Fargo unveiled its recession stock portfolio, a part of which was AT&T Inc. (NYSE:T). The stock was also named among the “15 stocks that can weather a bear market” by Morgan Stanley on May 23. Moreover, this June, Tigress Financial analyst Ivan Feinseth maintained a Buy rating on the shares. The analyst sees the company’s “resilient” business model and growing consumer base to drive increased cash flow and long-term shareholder returns.

AT&T Inc. (NYSE:T) is among the best budget-friendly blue-chip stock options to consider because, at current levels, the stock is undervalued and moreover, is paying dividends. As of June 17, AT&T Inc. (NYSE:T) has a forward PE ratio of 7.55 and a dividend yield of 5.73%.

At the close of Q1 2022, 74 hedge funds disclosed ownership of stakes in AT&T Inc. (NYSE:T). The total value of these stakes came in at $4.0 billion. Of these, Arrowstreet Capital was the most bullish hedge fund on the stock with stakes worth $678.54 million.

Here is what Weitz Investment Management had to say about AT&T Inc. (NYSE:T) in its “Hickory Fund” fourth-quarter 2021 investor letter:

“After several quarters of pandemic-induced outsized growth, new broadband connection growth has slowed for U.S. cable operators. This slower growth has coincided with a renewed push by competitors like Verizon and AT&T Inc. (NYSE:T) to offer high-speed data (either via wireless connects or by building new fiber-optic networks).”