Is it good to buy Telus stocks


Aime
Telus Corp. (TU) does not appear to be a compelling buy at this time. Here's why:
- Financial Performance Concerns: The company's negative year-on-year total revenue growth rate of -0.75% and a net profit margin of only 2.84% are indicators of potential financial struggles1.
- Valuation Concerns: The P/E ratio of 42.06 suggests that the stock is relatively expensive compared to the industry average, which may not be justified by its earnings potential2.
- Dividend Yield: While the dividend yield of 6.93% is attractive, the payout ratio of 134.1% indicates that the company relies heavily on its balance sheet to cover dividends, which could be a concern for its sustainability3.
- Market Sentiment: The consensus rating is "Neutral" with an average price target of $26, which is below the current trading price, suggesting that analysts do not see significant upside potential in the near term45.
- Fund Flow: The net fund flow of -$171,965.4 indicates that investors are pulling money out of the stock, which could be a sign of market sentiment or potential selling pressure7.
- Hedge Fund Activity: The involvement of hedge funds like Heathbridge Capital Management Ltd. and Crossmark Global Holdings Inc. in the stock does not necessarily indicate a positive outlook, as hedge funds often employ various investment strategies89.
In conclusion, while Telus Corp. does pay a decent dividend and has some institutional support, the negative revenue growth, high P/E ratio, and concerns about sustainability of dividends suggest that potential investors should exercise caution. It is important to consider your own investment strategy, risk tolerance, and the specific circumstances before making any investment decisions.
Source:
1.
TU Revenue Growth Rate, Net Profit Margin, Dividend Yield
more
less
Continue this conversation 

Explore
Screener
Analysis
Learn
Wiki