Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
TELUS Corporation is a leading Canadian telecom service provider based in Vancouver, British Columbia. The company is one of the largest telecom carriers in Canada (the largest in western Canada) with its coast-to-coast 4G LTE network covering 99% of the country’s population. TELUS provides wireless, wireline, and Internet communications services for voice and data to businesses and consumers.
TU sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Diversified Communication Services industry's P/E of 11.8X, shares of Telus are trading at a forward P/E of 18.3X. TU also has a PEG Ratio of 1.9, a Price/Cash Flow ratio of 4.9X, and a Price/Sales ratio of 1.4X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.01 to $0.74 per share. TU has an average earnings surprise of 11.9%.
Investors should take the time to consider TU for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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TELUS Corporation (TU) : Free Stock Analysis Report
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