BCE Should I Buy
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BCE Inc is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown some positive financial metrics and has potential catalysts like the 5G+ network expansion, the technical indicators, options sentiment, and recent price trends suggest a cautious approach. The stock's recent performance and lack of strong upward momentum do not align with an impatient investor's goals.
The stock's MACD is negative and expanding downward, indicating bearish momentum. RSI is neutral at 47.128, suggesting no clear signal. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), but the stock is trading below key pivot levels (current price: 25.98, pivot: 26.012). Support levels at S1 (25.607) and S2 (25.357) are close to the current price, indicating potential downside risk.
The launch of the 5G+ Advanced network in key Canadian regions could drive long-term growth. Analysts have raised price targets recently, and the company has shown strong net income and EPS growth in the latest quarter.
The regular market price dropped by -1.78%, and the stock is underperforming key resistance levels. Mixed Q4 results, including lower broadband loading and pressure on adjusted EPS guidance, weigh on sentiment. Structural headwinds in the Canadian telecom market remain a concern.
In 2025/Q4, revenue slightly decreased by -0.28% YoY to $6.404 billion. However, net income increased significantly by 28.85% YoY to $594 million, and EPS grew by 25.49% YoY to 0.64. Gross margin dropped to 0, which is a significant concern.
Analysts have mixed views. TD Securities and Scotiabank maintain positive ratings with price targets of C$40 and C$39.50, respectively. However, some analysts cite structural headwinds and mixed Q4 results. The consensus leans towards cautious optimism, but the stock lacks a strong buy consensus.
