Telus Shares Soar 0.56% on $70B Investment Plan

Telus (TU) shares rose to their highest level since October 2024 today, with an intraday gain of 0.56%.

The strategy of buying TU shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 5-year CAGR of 7.98%. While this is lower than the overall 5-year CAGR of 12.15% for TU, it still indicates a decent performance, especially considering the market conditions and volatility of the Canadian dollar. The strategy's Sharpe ratio was 0.83, suggesting good risk-adjusted returns. However, the maximum drawdown of -7.98% during the period highlights the risk of holding a leveraged position, especially during market downturns. Overall, the strategy provided steady returns but came with moderate risk.

Telus has announced a significant investment of over $70 billion through 2029 to expand and enhance its network infrastructure and operations across Canada. This investment will support the launch of new artificial intelligence data centers, improve wireless coverage and capacity, and address the increasing demand for affordable rental housing. Additionally, Telus is committed to advancing rural and Indigenous connectivity, enhancing digital services, and promoting environmental sustainability through technology. These strategic initiatives are aimed at boosting innovation, productivity, and economic prosperity in Canada, which can have a positive impact on the company's stock price.