Can AT&T's Effort to Boost Customer Satisfaction Drive Profits?
AT&T Inc.T has partnered with Citigroup Inc.C to upgrade the AT&T Points Plus Card with new benefits focused on saving money and earning rewards as part of its customer-centric business model. The updated card is designed to meet customer demand for simple, everyday value at a lower monthly expense.
AT&T customers using this updated card can save $10 per eligible wireless line and an extra $10 on Internet bills when using AutoPay and paperless billing. It also offers double rewards points on AT&T purchases, such as bill payments, while removing foreign transaction fees when traveling abroad, making it cheaper and more rewarding to use.
The new credit card provides rewards for everyday spending by giving a $20 statement credit on each billing cycle after spending $1,000 or more, which can add up to $240 a year. It also offers 3x points on gas and EV charging, 2x on groceries, and 1x on other purchases, with rewards that can be used for travel, shopping, gift cards, or cash back through the Citi ThankYou Rewards program.
Cardholders also receive World Mastercard benefits like identity theft protection and special cultural, food and entertainment experiences. With no annual fee and improved rewards, the updated AT&T credit card is a simple way for customers to save money and earn rewards on everyday spending.
How Are Competitors Performing in the Digital Sector?
AT&T faces stiff competition from Verizon Communications, Inc.VZ and T-Mobile, US, Inc.TMUS. Verizon is expanding in the digital sector by using artificial Intelligence (AI) to improve its networks and customer service. It is also expanding fiber, 5G and wireless networks to support faster Internet and cloud services. The company is working with partners like Amazon Web Services to build stronger networks for AI and cloud technology.
T-Mobile is strengthening its role in the digital industry by improving its digital customer services, such as apps, online support and personalized offers, to make things easier for users. It is also investing in advanced 5G and future 6G networks to support faster Internet, cloud services and smart devices. T-Mobile is using AI to build smarter networks that improve speed, connection and real-time services.
T’s Price Performance, Valuation & Estimates
AT&T shares have lost 2.9% over the past year against the industry’s decline of 11.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, AT&T trades at a forward price-to-sales ratio of 1.41, below the industry tally of 1.8.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have increased 0.9% to $2.29 over the past 60 days, while the same for 2027 have remained static at $2.52.
Image Source: Zacks Investment Research
AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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