Q: Hi, Telus stock has shed about 8% of its value over past 3 weeks and is trading very close to its 52 weeks low of $25.95, back in January. Is this the " higher interest rates for longer fear " for Telcos/Utilities or, there are business issues specific to Telus. If none, does it male sense to add at these levels for income/growth ?
BCE has also declined by about the same %, during the same period, but is still well above its 52 week low.
Thank You
BCE has also declined by about the same %, during the same period, but is still well above its 52 week low.
Thank You
5i Research Answer:
Telus's Q1 results were OK, with revenue up 16%. It has announced significant long term spending plans (i.e. $11B in Quebec through 2027) and this may have concerned some investors worried about recession. But the weakness is likely more related to general rate and market worries. We would be fine buying today up to a reasonable weighting. We would continue to see it more as an income stock vs growth.