This Canadian Media Stock Just Hit its 52-Week High

It’s shedding value after hitting a 52-week high; so is Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) a buy at its current share price?

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Looking for a popular way to invest in the stock market? The following ticker crops up in lists of dividend stocks to watch, and professionals who make money trading stocks for a living have been commenting on its recent climb to all-time highs. It’s been a great year for this media stock, making it a great choice when buying shares on the TSX index to sell once they’ve hit a higher threshold. It’s not usually one for capital gains investors, but today this telecoms favourite is looking like a buy for champions of upside.

Rogers Communications (TSX:RCI.B)(NYSE:RCI)

Rogers is a top TSX stock to watch for a value opportunity. Those who hold this stock may be wondering if it’s a good time to cash in or not, while capital gains investors may be wondering whether to look past a high P/B to the possibility of upside and some passive income along the way.

Lists of Canadian stocks hitting their 52-week highs have been graced with this top stock, which is rendered nicely defensive with a market cap of $36 billion and solid one-year past earnings growth of 43.8% that shows up a five-year average past earnings growth of 0.1%.

While a PEG of twice growth is perhaps a little high, it’s that debt level of 202.4% of net worth that should perhaps be of most concern to the risk-averse trader.

Value, quality, and momentum

A P/E of 18.9 times earnings isn’t too shabby for a top TSX stock, though a P/B of 4.7 times book is a little high. A dividend yield of 2.74% isn’t too far behind some of the Big Five banking stock payouts, though higher yields can definitely be found on the TSX index. If you want to make money investing in Canadian businesses, this is one of the better-valuated blue-chip stocks to invest in.

In terms of quality, a ROE of 25% is significantly high, while an EPS of $3.73 is very encouraging. A 9.3% expected annual growth in earnings seems conservative and is positive enough to make this stock a buy from a quality perspective once you’ve factored in the other key indicators here.

Is it a momentum stock? It’s lost 0.97% in the last five days, down from a 4.91% gain for the same duration last week. Sounds like a buy from a momentum perspective so far, but a beta of 0.31 indicates low volatility, and its share price is discounted by 25% compared to its future cash flow value.

The bottom line

Checking out stocks hitting their 52-week highs is a fun way to see which stocks are offering up quick payback through last-minute upside. It’s a short-term way to make money with stocks, and a lot of folk who profit from investing in Canada like to use this method. However, when it comes to Rogers Communications, the high couldn’t last forever, so now investors need to ask: Is there still some upside left, or is a value opportunity only just opening up? Pundits are on the fence, so it may be worth hanging back for now.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Victoria Hetherington has no position in any of the stocks mentioned.

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