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Record inflation, a hawkish Fed policy, lingering global supply chain issues along with the Ukraine war and uncertainty over global macroeconomic conditions are roiling the U.S. and global equity markets.
In such a scenario, a stock like TELUS, with sound growth opportunities, can be an attractive investment. TELUS delivered an average earnings surprise of 2% in the trailing four quarters.
For 2022 and 2023, the company’s revenue estimates are pegged at $14 billion and $15.2 billion, suggesting year-over-year growth of 2.5% and 8.7%, respectively.
The Zacks Consensus Estimate for 2022 earnings stands at $1.02 per share, having improved 5.2% in the past 60 days. For 2023, the Zacks Consensus Estimate is pegged at $1.15 per share, up 5.5% in the past 60 days. For 2022 and 2023, the earnings estimates for the company suggest year-over-year growth of 20% and 12%, respectively. The long-term growth rate stands at 9.9% while dividend payout rate stands at 1.19%
TU has a Growth Score of B. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or #2 and a Growth Score of A or B offer solid investment opportunities.
Canada-based TELUS is one of the largest telecom carriers in the country. The company provides wireless, wireline, and Internet communications services for voice and data to businesses and consumers. The company operates as the incumbent local exchange carrier (ILEC) in British Columbia, Alberta and parts of Quebec.
TELUS’ performance is benefiting from continued momentum across TELUS technology (TTech) solutions and TELUS International. TTech’s business segment is well-poised to benefit from solid momentum across fixed data, agriculture, customer and health services.
In the second quarter of 2022, TTech revenues grew 4% year over year to C$3,701 million, primarily driven by higher mobile network revenues followed by solid performance across fixed data and health services. Revenues from digitally-led customer experiences — TELUS International soared 21.1% year over year to C$797 million
Rapid growth within the technology and games sectors, banking and financial services as well as e-commerce and fintech verticals bode well for the company in the long run. Also, the company is likely to benefit from an accelerated broadband expansion program.
TELUS achieved a strong foothold in the Canadian healthcare telecom market by acquiring Emergis, a business process outsourcer specializing in healthcare and financial services. This acquisition strengthened TELUS’ industry solutions for healthcare and financial services.
To further bolster its position in the lucrative digital health services market, TELUS announced the acquisition of LifeWorks in June 2022 . LifeWorks provides digital and in-person healthcare solutions. TELUS will be integrating LifeWorks’ employee and family assistance program as well as benefits administration capabilities into TELUS Health’s existing portfolio of digital health solutions.
However stiff competition, increasing investments and high debt burden are major headwinds.
Other Stocks to Consider
Some other top-ranked stocks from the broader technology space are Pure Storage (PSTG - Free Report) , Blackbaud (BLKB - Free Report) and Synopsys (SNPS - Free Report) . Pure Storage currently sports a Zacks Rank #1, whereas Synopsys and Blackbaud carry a Zacks Rank #2.
The Zacks Consensus Estimate for Pure Storage’s 2022 earnings is pegged at $1.18 per share, rising 24.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have gained 0.9% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2022 earnings is pegged at $2.55 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 3%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 8.5%.
The Zacks Consensus Estimate for Synopsys’ 2022 earnings is pegged at $8.85 per share, up 4.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 16.2%.
Synopsys’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 3%. Shares of SNPS have lost 9.4% of their value in the past year.
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Here's Why Investors May Consider Betting on TELUS (TU) Stock
TELUS Corporation (TU - Free Report) is one stock investors may want to keep an eye on in the current volatile market conditions, given its upside potential. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Record inflation, a hawkish Fed policy, lingering global supply chain issues along with the Ukraine war and uncertainty over global macroeconomic conditions are roiling the U.S. and global equity markets.
In such a scenario, a stock like TELUS, with sound growth opportunities, can be an attractive investment. TELUS delivered an average earnings surprise of 2% in the trailing four quarters.
For 2022 and 2023, the company’s revenue estimates are pegged at $14 billion and $15.2 billion, suggesting year-over-year growth of 2.5% and 8.7%, respectively.
The Zacks Consensus Estimate for 2022 earnings stands at $1.02 per share, having improved 5.2% in the past 60 days. For 2023, the Zacks Consensus Estimate is pegged at $1.15 per share, up 5.5% in the past 60 days. For 2022 and 2023, the earnings estimates for the company suggest year-over-year growth of 20% and 12%, respectively. The long-term growth rate stands at 9.9% while dividend payout rate stands at 1.19%
TU has a Growth Score of B. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or #2 and a Growth Score of A or B offer solid investment opportunities.
TELUS Corporation Price
TELUS Corporation price | TELUS Corporation Quote
Growth Drivers
Canada-based TELUS is one of the largest telecom carriers in the country. The company provides wireless, wireline, and Internet communications services for voice and data to businesses and consumers. The company operates as the incumbent local exchange carrier (ILEC) in British Columbia, Alberta and parts of Quebec.
TELUS’ performance is benefiting from continued momentum across TELUS technology (TTech) solutions and TELUS International. TTech’s business segment is well-poised to benefit from solid momentum across fixed data, agriculture, customer and health services.
In the second quarter of 2022, TTech revenues grew 4% year over year to C$3,701 million, primarily driven by higher mobile network revenues followed by solid performance across fixed data and health services. Revenues from digitally-led customer experiences — TELUS International soared 21.1% year over year to C$797 million
Rapid growth within the technology and games sectors, banking and financial services as well as e-commerce and fintech verticals bode well for the company in the long run. Also, the company is likely to benefit from an accelerated broadband expansion program.
TELUS achieved a strong foothold in the Canadian healthcare telecom market by acquiring Emergis, a business process outsourcer specializing in healthcare and financial services. This acquisition strengthened TELUS’ industry solutions for healthcare and financial services.
To further bolster its position in the lucrative digital health services market, TELUS announced the acquisition of LifeWorks in June 2022 . LifeWorks provides digital and in-person healthcare solutions. TELUS will be integrating LifeWorks’ employee and family assistance program as well as benefits administration capabilities into TELUS Health’s existing portfolio of digital health solutions.
However stiff competition, increasing investments and high debt burden are major headwinds.
Other Stocks to Consider
Some other top-ranked stocks from the broader technology space are Pure Storage (PSTG - Free Report) , Blackbaud (BLKB - Free Report) and Synopsys (SNPS - Free Report) . Pure Storage currently sports a Zacks Rank #1, whereas Synopsys and Blackbaud carry a Zacks Rank #2.
The Zacks Consensus Estimate for Pure Storage’s 2022 earnings is pegged at $1.18 per share, rising 24.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have gained 0.9% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2022 earnings is pegged at $2.55 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 3%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 8.5%.
The Zacks Consensus Estimate for Synopsys’ 2022 earnings is pegged at $8.85 per share, up 4.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 16.2%.
Synopsys’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 3%. Shares of SNPS have lost 9.4% of their value in the past year.