Telus Corp. (TU) Shares Up Despite Recent Market Volatility

Telus Corp. (NYSE: TU)’s stock price has gone rise by 1.06 in comparison to its previous close of 16.09, however, the company has experienced a 1.43% increase in its stock price over the last five trading days. seekingalpha.com reported 2024-08-26 that TELUS International’s stock has plummeted due to drastically reduced earnings estimates and disappointing Q2-2024 results. The parent has stepped in to support the shares. Valuation is looking quite compelling and this is a high risk-high reward play.

Is It Worth Investing in Telus Corp. (NYSE: TU) Right Now?

The price-to-earnings ratio for Telus Corp. (NYSE: TU) is above average at 41.76x, Company’s 36-month beta value is 0.76.Analysts have differing opinions on the stock, with 4 analysts rating it as a “buy,” 1 as “overweight,” 5 as “hold,” and 0 as “sell.”

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The public float for TU is 1.49B, and currently, short sellers hold a 1.95% ratio of that floaft. The average trading volume of TU on August 27, 2024 was 2.12M shares.

TU’s Market Performance

TU stock saw an increase of 1.43% in the past week, with a monthly gain of 2.39% and a quarterly increase of -0.12%. The volatility ratio for the week is 1.11%, and the volatility levels for the last 30 days are 1.54% for Telus Corp. (TU). The simple moving average for the last 20 days is 0.67% for TU’s stock, with a simple moving average of -3.25% for the last 200 days.

TU Trading at 2.99% from the 50-Day Moving Average

After a stumble in the market that brought TU to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -15.02% of loss for the given period.

Volatility was left at 1.54%, however, over the last 30 days, the volatility rate increased by 1.11%, as shares surge +2.33% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +2.78% upper at present.

During the last 5 trading sessions, TU rose by +1.43%, which changed the moving average for the period of 200-days by -6.82% in comparison to the 20-day moving average, which settled at $16.17. In addition, Telus Corp. saw -8.60% in overturn over a single year, with a tendency to cut further losses.

Stock Fundamentals for TU

Current profitability levels for the company are sitting at:

  • 0.14 for the present operating margin
  • 0.39 for the gross margin

The net margin for Telus Corp. stands at 0.04. The total capital return value is set at 0.06. Equity return is now at value 4.79, with 1.37 for asset returns.

Based on Telus Corp. (TU), the company’s capital structure generated 0.63 points at debt to capital in total, while cash flow to debt ratio is standing at 0.19. The debt to equity ratio resting at 1.69. The interest coverage ratio of the stock is 1.9.

Currently, EBITDA for the company is 6.37 billion with net debt to EBITDA at 4.22. When we switch over and look at the enterprise to sales, we see a ratio of 3.06. The receivables turnover for the company is 4.92for trailing twelve months and the total asset turnover is 0.35. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.66.

Conclusion

In a nutshell, Telus Corp. (TU) has experienced a mixed performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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