TU Should I Buy
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Telus Corp (TU) is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock lacks clear positive catalysts, faces declining financial performance, and shows neutral to bearish technical indicators. While the dividend reinvestment discount may appeal to income-focused investors, the overall setup does not justify immediate action.
The technical indicators are neutral to bearish. The MACD histogram is negative and contracting, RSI is neutral at 50.148, and moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its pivot level of 13.695, with resistance at 14.073 and support at 13.316.
The announcement of a 1.75% discount in the Dividend Reinvestment Plan starting April 1, 2026, could attract income-focused investors. Additionally, the company's commitment to social responsibility initiatives may appeal to ESG-conscious investors.
Declining financial performance in Q4 2025, with revenue down 1.89% YoY, net income down 18.44% YoY, and EPS down 20.83% YoY. Bearish technical indicators and lack of significant insider or hedge fund activity further weigh on the stock.
In Q4 2025, Telus reported a revenue decline of 1.89% YoY to $5.23 billion, net income dropped 18.44% YoY to $292 million, and EPS fell 20.83% YoY to $0.19. Gross margin also slightly declined to 41.38%.
Analysts have mixed views. Scotiabank raised the price target to C$23 from C$22 and maintained an Outperform rating, while TD Securities lowered the price target to C$21 from C$25 but kept a Buy rating. This reflects cautious optimism but no strong consensus.
