#10 - Telus (TSE:T)
Telus (TSE:T) Telus is one of the three main telecom companies in Canada (in terms of market share). TU currently holds 30% of the total Canadian telecom market and serves approximately 10 million customers. The company has three main business units, the largest revenue driver being its wireless segment. In 2018, this segment accounted for 57% of total revenue. The company is coming off strong second-quarter earnings which saw a 2.8% increase in wireless volume and a 6.4% increase in wireline revenue. EBIDTA was up 9% and net income was up 31% YoY. The stock currently has a PE multiple of 16.82x, slightly below its 5-year average. However, the company’s price-to-book ratio is trading at an 11% discount to its 5-year average. The consensus price target for Telus is $52.15 which would be an 8% increase from the stock’s present value. As a long-term play, some investors may want to wait for the price to come down. However, since Telus also pays an attractive dividend, growth-and-income investors may choose to jump into the stock simply to capture the dividend.
About TELUS
TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Technology Solutions and Digitally-Led Customer Experiences segments. The Technology Solutions segment offers a range of telecommunications products and services; network services; healthcare services; mobile technologies equipment; data services, such as internet protocol; television; hosting, managed information technology, and cloud-based services; software, data management, and data analytics-driven smart food-chain and consumer goods technologies; home and business security; healthcare software and technology solutions; and voice and other telecommunications services, as well as mobile and fixed voice and data telecommunications services and products.
Read More - Current Price
- C$21.39
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 2 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- C$24.46 (14.3% Upside)
One of the key principles of investing is diversification. With so much volatility affecting not only U.S. stocks, but global stocks, investors need to be more aware than ever of potential opportunities in other markets. Canadian stocks are performing well. In fact, some of the best-known cannabis growth stocks are Canadian companies and we’ve highlighted two of them in this presentation. But Canada is a great story for investors of all risk levels. There are some solid dividend performers as well as some under-the-radar stocks in sectors like retail. Fall can be a time for some investors to decide to pull back from the market. But with the Federal Reserve lowering interest rates, stocks are the place to be. As you do some fourth-quarter planning, consider these Canadian growth stocks as a way to gather some attractive year-end profits.
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