Rogers Communications Shares Soar 5.6% on 5G Expansion

Rogers Communications (RCI) shares rose to their highest level since January 2025 today, with an intraday gain of 0.68%.

The strategy of buying RCI shares after they reached a recent high and holding for 1 week showed underperformance over the past 5 years. The annualized return was -4.22%, significantly lower than the market return of 14.84%. This indicates that this strategy failed to capitalize on the broader market's upward movement, resulting in negative returns. The maximum drawdown of -34.37% during the backtested period further highlights the strategy's vulnerability during market downturns.

Rogers Communications has been actively investing in 5G infrastructure, which has strengthened its position in Canada's telecom sector. These investments are expected to enhance the company's market dominance and drive future growth.

Analysts have shown confidence in Rogers Communications. TD Securities reaffirmed a Buy rating with a price target of C$60.00, while the National Bank of Canada reiterated its outperform rating and raised the price target to $53.00. These positive ratings reflect the market's optimism about the company's prospects.

Rogers has expanded its 5G services in Eastern Ontario by installing 63 new towers. This expansion not only improves service quality but also solidifies Rogers' reputation as a leading player in the Canadian telecom industry.

The recent 5.6% increase in share price, following a year of 18% losses, has caught the attention of institutional investors. This price movement may indicate a shift in returns and a renewed interest in the stock, potentially driving further gains.