Analyst Picks Sprint And AT&T As Favorites: CNBC (S, ATT)

In an interview with CNBC, David Dixon, senior telecom analyst at FBR Capital Markets said that the telecom service sector is fraught with uncertainty. Dixon said, “But investors are going to be quite surprised about the free cash resiliency of this space over the next few years.” According to Dixon, telecom sector has potential for great investment ideas.

However, according to Craig Moffett, senior analyst at Sanford C. Bernstein, the telecom sector is currently experiencing a low rate of return on investment, and that it is a big concern. Moffett said that although the big telecom companies typically pay high dividends, they are negative growth companies.

David Dixon picked Sprint (NYSE: S), and AT&T (NYSE: T) as his favorite stocks.