AT&T is a blue-chip stock that's posted positive 2022 returns. But is it still a buy?
Ronald Martinez/Getty Images News

AT&T (NYSE:T) remains one of Wall Streetâs blue-chip outliers in 2022 as the stock trades well in the green even as higher inflation and speculation about an eventual recession weigh on the overall market. Strong cash flows and a high dividend have helped bolster the stock.
Given the general economic uncertainty and increased competition, does the telecom giant remain a buy at these levels?

Warner Media Spin-Off and Cash Flows

Since the April spin-off of Warner Bros. Discovery (WBD), shares of AT&T have flourished. The stock reached a 52-week low of $16.63 in mid-December but stabilized in the first several months of 2022. Shares experienced an upswing in April and May, as the spin-off took place, and has held those gains lately. T is currently trading at just below $21.
T has supported its stock with a strong underlying business, drawing investor attention as a defensive play and an attractive dividend payer. 
On the earnings front, the company demonstrated strong free cash flows in its last earnings report. Meanwhile, T has looked to keep up with an inflationary environment with a decision to increase fees on specific plans by $6 for a single line and also $12 for a family group plan, a program started back in the beginning of June.
Bolstered by its solid fundamentals, T has climbed nearly 11% so far in 2022, with a P/E of 8x and a dividend yield of 5.4%.
Is T a Buy?
Wall Street analysts have mixed opinions about T. Of the 30 analysts that Seeking Alpha has surveyed over the past 90 days, six list the stock as a Strong Buy and seven classify AT&T (T) as a buy. Meanwhile, the bulk of the group, 17 analysts in all, list the company as a Hold. Two analysts place T as a Strong Sell.
In reference to a price target, the average analyst estimate sits at $22.71, about a 9% rally from current levels. The highest price estimate is placed at $28 a share and the lowest level is at $14 a share. See a breakdown below:

Seeking Alphaâs Quant Ratings also has a mixed view of the stock. On many quantitative measures, the system identifies significant value. For instance, T gets an A+ for profitability, as well as a B+ for valuation and a B for momentum.
However, the Quant Ratings see a shortfall in growth, giving the telecom company an F in that area. 
For more on the stock, Seeking Alpha contributor Cestrian Capital Research is bullish on T, stating: âShould a recession hit, we believe [it] can continue to act as a store of value.â At the same time, Librarian Capital sees structural problems in AT&T's businesses, with mobility in particular facing commoditization and tougher competition.