TU Should I Buy
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ET
Telus Corporation does not present a strong buying opportunity for a beginner investor with a long-term strategy at this moment. The stock faces significant headwinds, including bearish technical indicators, negative analyst sentiment, and declining financial performance. While the options data shows a bullish sentiment, the lack of strong positive catalysts and the risk of potential dividend cuts make it prudent to hold off on investing in this stock for now.
The technical indicators for TU are mixed to bearish. The MACD is positive and expanding, indicating some bullish momentum. However, the RSI is neutral, and the moving averages show a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its resistance level (R1: 12.497), which could limit further upside in the short term.
Telus Digital was recognized as a Leader in Everest Group's 2024 PEAK Matrix® Assessment for Data Annotation and Labeling Solutions, which could enhance its reputation in the digital services space.
Analysts have downgraded the stock and lowered price targets, citing concerns over dividend sustainability, pricing pressures, and low visibility on asset divestitures. The company's financial performance has also been weak, with YoY declines in revenue, net income, and EPS.
In 2025/Q4, Telus reported a revenue decline of -1.89% YoY, net income dropped by -18.44% YoY, and EPS fell by -20.83% YoY. While gross margin improved slightly to 41.38%, the overall financial performance indicates significant challenges.
Analysts have a predominantly neutral to bearish outlook on Telus. Recent downgrades and lowered price targets highlight concerns over dividend sustainability, growth pressures, and asset divestitures. The stock's setup is described as 'clouded' by uncertainties.
