Investment bank JPMorgan just released its highly anticipated list of top 47 stock picks for 2026, a handpicked selection of companies that the firm believes will generate huge returns over the next year. The list covers a wide range of industries, from technology and healthcare to finance, energy and consumer discretionary. However, only one name in the telecommunications sector made the cut: AT&T (T).
JPMorgan gives AT&T an “Overweight” rating and sets a one-year price target of $33 per share, implying approximately 35% upside from recent trading levels. The stock currently offers a forward dividend yield of around 4.5%, making it one of the highest-yielding large-cap names on the market. Despite rising 8% over the past year and having an attractive revenue stream, AT&T stock has fallen 18% from its September high of $29.79 per share.
This recent weakness has raised questions among investors about whether the pullback is a buying opportunity or a sign of deeper challenges. With bullish backing from JPMorgan and a generous dividend, does AT&T deserve a spot in a long-term portfolio?
AT&T is one of the largest telecommunications providers in the United States, offering wireless, broadband and fiber optic services to more than 100 million customers. Headquartered in Dallas, Texas, at the iconic Whitacre Tower, the company operates the nation’s largest wireless network by coverage and continues to aggressively expand its fiber-to-the-home presence through its ongoing fiber deployment program.
Over the past 12 months, AT&T stock is up 8%, reflecting consistent execution and subscriber growth in the wireless and broadband segments. However, the stock saw a sharp drop from its recent peak after rising sharply for much of the year.
Several factors contributed to the sell-off: intensified promotional activity in the wireless industry, which put pressure on average revenue per user (ARPU); investor concerns about possible loss of subscribers amid economic uncertainty; and a broader market rotation away from high-yield dividend stocks as interest rates remained elevated.
Despite these obstacles, AT&T has continued to demonstrate operational strength, generating consistent free cash flow and advancing its strategic shift toward higher-margin fiber and 5G services.
JPMorgan analyst Sebastiano Petti, who covers the company’s telecommunications sector, has been consistently bullish on AT&T. In recent notes to investors, Petti has highlighted several key factors behind his “overweight” rating and $33 price target. It points to AT&T’s strong competitive position in the postpaid wireless sector, where the company has been gaining market share through improved customer experience and network quality.
