RCI Should I Buy
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Rogers Communications Inc (RCI) is a good buy for a beginner investor with a long-term investment strategy and $50,000-$100,000 available. The company's strong financial performance, positive analyst sentiment, and dividend yield make it an attractive investment opportunity. While technical indicators are mixed, the long-term fundamentals and positive catalysts outweigh the short-term technical concerns.
The MACD is positive and expanding, indicating bullish momentum. However, RSI at 79.127 is in the overbought zone, which could signal a potential pullback. Moving averages are bearish (SMA_200 > SMA_20 > SMA_5), suggesting a short-term downtrend. Key resistance is at 37.275, with support at 34.882.
Strong Q1 financial performance with a 10% YoY revenue increase and 56.43% YoY net income growth.
Positive analyst sentiment with multiple upgrades and increased price targets.
Dividend yield of 6.06%, appealing for long-term investors.
Strong shareholder support at the Annual General Meeting.
Bearish moving averages indicate short-term price weakness.
Gross margin decreased by 4.62% YoY, which may raise concerns about cost management.
Stock trend analysis shows a potential -6.74% decline in the next month.
In Q1 2026, Rogers Communications reported a 10.17% YoY revenue increase to $5.48 billion, a 56.43% YoY net income increase to $438 million, and a 55.77% YoY EPS growth to $0.81. However, gross margin dropped by 4.62% YoY to 20.85%.
Analysts are overwhelmingly positive on RCI, with multiple upgrades and price target increases. Recent upgrades include TD Securities (Buy, C$60 target), RBC Capital (Outperform, C$63 target), and Scotiabank (Outperform, C$60.50 target). Analysts cite improved free cash flow, reduced capex, and strong wireless industry pricing as key drivers.
