Goldman Sachs Group, Inc. is bullish on the three largest telecommunications companies in the United States, with AT&T (T.US) being the top choice.

Goldman Sachs Group, Inc. expects that the performance of US wireless operators in the remaining time of the year will remain solid, benefiting from higher service revenue and strong incremental profit. The firm has rated the three major US telecom companies AT&T (T.US), Verizon (VZ.US), and T-Mobile (TMUS.US) as "buy," and has named AT&T as its top pick. Goldman Sachs Group, Inc. anticipates positive results for AT&T's wireless business, possibly announcing capital allocation and buybacks. They note that management commentary during the earnings season has been generally positive, and they feel that the company's outlook on wireless trends has not declined. The firm stated, "Given the steady commentary throughout the quarter and no significant change in management tone, we think investors should feel optimistic about the stock. We expect a slight increase in expectations due to the positive wireless backdrop, but considering the impact of labor strikes, consumer broadband expectations may decline." As for Verizon, the company is expected to see improvement in execution in expanding its phone network. However, they predict that with the enhanced execution in wireless business and the continued momentum in fixed wireless access business (which in turn drives user growth), the company will achieve solid quarterly performance. Goldman Sachs Group, Inc. mentioned, "We think investors are expecting first-quarter performance to be in line with expectations, and we anticipate Verizon will meet market expectations, but we believe a shortfall in phone net adds could be detrimental to the stock before year-end." Regarding T-Mobile, Goldman Sachs Group, Inc. holds a "constructive" view on the stock. "We expect postpaid phone net adds to increase in the third quarter and will be elevated through 2024 guidance. We believe short-term investors have become more bearish on the stock, while long-term investors are focused on the company's 2025 guidance (driven by declining wholesale revenue) and the acceleration in service revenue and EBITDA growth after 2025." Goldman Sachs Group, Inc. stated, "We believe the company's annual 2% postpaid ARPU guidance supports our view that competition in the wireless industry is improving."