TELUS International(TIXT) Shares Soar 2.37% on Acquisition, Earnings Hopes

TELUS International(TIXT) shares surged 2.37% today, marking the sixth consecutive day of gains, with a cumulative increase of 7.78% over the past six days. The stock price reached its highest level since February 2025, with an intraday gain of 4.75%.

The strategy of buying TIXT shares after they reach a recent high and selling them one week later resulted in a significant underperformance. Over the past five years, the strategy yielded a return of -60.84%, which is a substantial loss compared to the benchmark return of 56.99%. The strategy had a maximum drawdown of -79.29%, indicating a high risk of substantial losses during market downturns. The Sharpe ratio of -0.59 and a volatility of 53.49% further highlight the strategy's riskiness and lack of consistent returns.

TELUS International's recent acquisition of Gerent, announced towards the end of May, has the potential to impact its stock price. This strategic move could lead to changes in the company's valuation or strategic direction, influencing investor sentiment and market perception.

Another significant factor is the upcoming Q2 2025 earnings report for TELUS Digital, scheduled for August 1, 2025. Investors will closely monitor the company's financial performance, as the earnings report could drive stock price movements based on the reported results and guidance for the future.

Additionally, recent trading activity has seen TIXT shares surpass the average analyst 12-month target price of $3.75. This development suggests a potential reassessment of the stock's value or a shift in investor sentiment, contributing to the upward momentum in the stock price.