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The Potential for Long-Term Growth of Telus Stock

For people who like getting regular payouts, Telus is a "dividend aristocrat." This means they've been increasing the money they pay out to investors for a long time.

By Ara ZohrabianPublished 3 months ago 11 min read
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The Potential for Long-Term Growth of Telus Stock
Photo by Jason Briscoe on Unsplash

Telus Corporation is a big player in the telecom world, offering services like wireless, internet, and home security in Canada. Since it started in 1990, Telus has been doing well financially, making money and increasing dividends for investors.

One cool thing about Telus is that it's always trying out new technology. It was one of the first to use 5G, giving customers really fast and reliable connections. They're also exploring things like artificial intelligence and the Internet of Things, which could mean even more growth in the future.

Money-wise, Telus is in good shape. It has a strong balance sheet and regularly brings in more cash than it spends. This means they can keep improving their networks and offering new services.

Telus is also known for keeping its customers happy, which is a big part of why it's been successful. Happy customers mean steady money coming in, and that's good for the company's growth.

For people who like getting regular payouts, Telus is a "dividend aristocrat." This means they've been increasing the money they pay out to investors for a long time. A lot of people like this because it gives them a reliable income.

Looking ahead, Telus seems like a good bet. They're already a big deal in Canada, and because they're always trying out new things, they're likely to keep growing. So, if you're thinking about a long-term investment that's a mix of growth and stability, Telus might be worth keeping an eye on.

Keep an eye on Telus stock; it's a ticket to potential growth and reliable returns.

Company Overview

Telus Corporation is a major Canadian telecom company known for its innovation and customer-focused approach. It has a solid financial history and a strong commitment to adopting new technologies, making it a significant player in the telecommunications industry.

Core Business

Telus provides a variety of telecommunications services for both homes and businesses. Their offerings include:

Wireless Services: Telus Mobility is Canada's largest national wireless provider, offering a comprehensive range of cellular plans, devices, and data packages.

Internet Services: Telus provides high-speed internet access through a variety of technologies, including fiber optic, cable.

Home Security Services: Telus offers a suite of home security solutions, including alarm monitoring, video surveillance, and remote access capabilities.

Financial Performance

Telus has consistently demonstrated strong financial performance - steady revenue growth, robust profitability, and a commitment to shareholder returns.

Telus presently boasts a market capitalization of C$35.26 billion. The company's trailing twelve months (TTM) earnings per share (EPS) stands at C$0.555, resulting in a price-to-earnings (P/E) ratio of 43.62. Additionally, Telus offers a noteworthy dividend yield of 5.99%. The upcoming earnings report is slated for February 8, 2024, with an estimated EPS forecast of C$0.23.

For a comprehensive understanding of Telus's financial health, it's crucial to look at its earnings and revenue history, balance sheet, and cash flow statements.

Telus Earnings and Revenue History

Telus Debt to Assets

Telus Cash Flow

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Telus (TSE:T) Earnings, Revenues Date & History

Overall, Telus's financial performance is strong and the company is well-positioned for continued growth.

Note: these figures are based on Telus's most recent financial statements, which were released in February 2023.

Market Position

Telus holds a steady position in the Canadian telecommunications market, with a strong brand reputation and a loyal customer base. The company's market leadership is evident in its:

Wireless Network: Telus has the biggest and fastest wireless network in Canada, giving its customers great coverage and speed.

Customer Satisfaction: People really like Telus. They're always at the top when it comes to keeping customers happy in Canada, showing that they're really committed to providing excellent service.

Recent Developments and Strategic Initiatives

Telus remains at the forefront of technological innovation, continuously investing in cutting-edge technologies to enhance its service offerings. Recent developments and strategic initiatives include:

5G Deployment: Telus is actively deploying its 5G network across Canada, providing customers with access to next-generation connectivity and speed.

AI and IoT Adoption: The company is exploring the potential of AI and IoT to enhance its products and services, paving the way for future growth opportunities.

Digital Transformation: Telus is embracing digital transformation, streamlining its operations and enhancing customer experiences through digital platforms.

Telus Corporation core business, financial strength, and market position make it an attractive investment option for long-term growth seekers. As Telus continues to embrace technological advancements and prioritize customer satisfaction, it remains poised to maintain its position as a leader in the ever-evolving telecommunications landscape.

Telus Stock Prediction: Factors Driving Long-Term Growth

Telus Corporation, a major Canadian telecom company, is set for long-term growth thanks to smart moves, tech improvements, and positive market trends. Here's what makes Telus's future look bright:

Expanding Coverage: Telus is working hard to bring high-speed internet and better wireless service to more areas, especially in rural and underserved places. This plan is meant to bring in more money and attract more customers.

Getting Ahead with 5G: Telus is a leader in bringing 5G, the next big thing in mobile networks, to Canada. By investing a lot in this technology, Telus aims to offer super-fast connections and open up new opportunities for businesses and regular users.

Using Smart Tech: Telus is using technologies like Artificial Intelligence (AI) and the Internet of Things (IoT) to make their services better. AI helps make their network work better, improves customer interactions, and creates new solutions. IoT, like smart homes and connected devices, is another area where Telus wants to grow.

Going Digital: Telus is changing the way it works by going digital. This means they're becoming more efficient, responding faster to customer needs, and creating better digital experiences.

Riding the Market Trends: More people want faster internet, better wireless services, and home security solutions. Telus is in a good position to benefit from these trends because of its big network, innovative products, and focus on customers.

Financial Strength: Telus is in good financial shape. They make good profits, have a strong balance sheet, and regularly increase the money they give back to investors. This financial strength allows Telus to invest in new technologies and handle changes in the market.

Happy Customers and Good Reputation: Telus is known for taking care of its customers, and it shows. People really like their service, making them one of the top telecom providers in Canada for customer satisfaction. This happy customer base is important for Telus, bringing in a steady flow of money and helping the company grow naturally.

TELUS Stock Forecast

TELUS stock has, on average, shown a historical rise of 7.7% over the next 52 weeks based on its performance over the past 24 years. This upward trend was observed in 14 out of those 24 years, resulting in a historical accuracy of 58.33%.

The current share price for TELUS [T.TO] is $24.45, and its current Score is 56. This score is 12% above its historical median score of 50, suggesting lower-than-normal risk.

T.TO is presently trading in the 50-60% percentile range concerning its historical Stock Score levels.

Analyst Consensus on Telus Price Target:

Based on assessments from 11 Wall Street analysts over the last 3 months, Telus is anticipated to see a 21.94% increase from its current price of C$24.31.

Average Price Target: C$29.64

High Forecast: C$55.00

Low Forecast: C$26.00

Risks and Mitigations

In the telecom industry Telus faces several challenges. From regulatory changes that could impact pricing and services, competition, to economic cycles that affect consumer spending, also technological disruptions and cybersecurity threats pose risks. To address these, Telus engages in proactive measures: early communication with regulators, innovation to stay competitive, market diversification, and robust cybersecurity investments.

Regulatory Changes:

Risk: Telus might face changes in regulations that could affect how they set prices, expand their network, and offer services.

Mitigation: To handle this, Telus can talk with regulators and industry groups early on. By understanding potential changes and advocating for policies that help their growth, they can be better prepared.

Competition:

Risk: The telecom market is really competitive, with big and small players all trying to get a piece. Telus faces competition from major carriers like Rogers and BCE, as well as smaller local providers.

Mitigation: Telus can stay ahead by always coming up with new and unique products. Also, being efficient and doing things well can help them compete, especially in a market where price matters.

Economic Cycles:

Risk: Telus's success is tied to how well Canada is doing economically. If things slow down, people might spend less on telecom services.

Mitigation: Telus can reduce this risk by getting into new markets, like helping other businesses (B2B) or expanding internationally. Also, keeping customers happy with good service and loyalty programs can help during tough times.

Technological Disruptions:

Risk: The tech world changes fast. If Telus doesn't keep up, they might need to spend a lot on new tech and change how they do business.

Mitigation: Telus can stay ahead by always trying new things and doing research. Working with other tech companies and partners can also help them stay on top of changes without taking on all the risk.

Cybersecurity Threats:

Risk: As everything goes digital, Telus is more at risk of cyberattacks. This could mess up their operations, hurt their reputation, and cost them money.

Mitigation: Telus can protect themselves by investing in strong cybersecurity tools, like firewalls and data encryption. Also, training employees on cybersecurity and doing regular security checks can help prevent problems caused by human mistakes or inside threats.

Is It Worth to Buy Telus Stocks in 2024?

Telus is a Canadian telecommunications company that is considered a good stock to buy in 2024. The company has a strong financial position, a loyal customer base, and a history of innovation. Telus is also well-positioned to benefit from the growth of the 5G market.

Here are some of the reasons why Telus is a good stock to buy in 2024:

Financial position

Revenue: Telus's revenue grew $14.07B, a 4.73% increase from 2021.

Earnings per share (EPS): In 2022 the company made an earnings per share (EPS) of $0.88 a decrease over its 2021 EPS that were of $0.96

Free cash flow: TELUS annual free cash flow for 2022 was $0.908B, a 36.77% decline from 2021

Telus experienced a somewhat diminished financial position, largely influenced by capital constraints in 2022. The Bank of Canada implemented seven consecutive increases to the benchmark interest rate during the year, resulting in a cumulative rise of 4.0% to reach 4.25%. Elevated interest rates amplify borrowing expenses for both businesses and consumers. Consequently, this overall trend of higher interest rates had a detrimental impact on the stock market, contributing to a general downturn in stock values throughout 2022.

Loyal customer base

Customer satisfaction: Telus consistently ranks among the top telecommunications providers in Canada for customer satisfaction. In 2022, Telus was ranked first in British Columbia and Alberta, and second in Ontario and Quebec.

Customer churn: Telus's customer churn rate is one of the lowest in the Canadian telecommunications industry. In 2022, Telus's churn rate was 1.2%.

History of innovation

5G network: Telus is one of the leading providers of 5G networks in Canada. The company has over 2.5 million 5G subscribers.

New products and services: Telus is constantly developing new products and services. In 2022, the company launched a number of new products, including Telus Optik TV+, Telus Smart Home Security, and Telus Health.

Growth opportunities

5G market: The 5G market is expected to grow significantly in the near future. Telus is well-positioned to benefit from this growth, given its leading position in the 5G market.

New markets: Telus is expanding into new markets, such as the healthcare sector and the EV charging market. These new markets could provide additional revenue streams for the company in the future.

Analyst recommendations

The majority of analysts who cover Telus stock have a "buy" rating on the stock.

The average price target for Telus stock is $29.64, which is 21% higher than the current price of $24.30.

Here are some of the risks to consider when investing in Telus:

Regulatory risk: The telecommunications industry is subject to regulation, and changes in regulations could impact Telus's business.

Competition: Telus faces competition from other telecommunications companies, and it is important to monitor the company's competitive position.

Economic risk: Telus's business is tied to the overall economy, and economic downturns could impact the company's revenue and profitability.

Overall, Telus is a good stock to buy in 2024. The company has a strong financial position, a loyal customer base, and a history of innovation. Telus is also well-positioned to benefit from the growth of the 5G market. However, there are some risks to consider, such as regulatory risk, competition, and economic risk.

We would recommend doing your own research before investing in any stock, including Telus. You should consider your own risk tolerance and investment goals before making any decisions.

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About the Creator

Ara Zohrabian

Ara Zohrabian, an author and an expert in fundamental and technical analysis. Currently he is a Senior Analytical Expert at IFCMarkets Corp.

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