Over the last 10 years, Telus International (TSX:TIXT) has generated returns of more than 131% after adjusting for dividends. Those are some pretty impressive growth numbers for long-term investors, especially when one zooms out and sees how relatively consistent these returns have been over time.
Now, the question is whether Telus can continue this long-term momentum moving forward. After all, the company’s stock is well off its 2022 high, and there are headwinds in the form of competitive pressures and regulatory burdens, which have hampered the stock thus far this year.
Let’s dive into what positive factors could lead to a boost in TIXT stock this month.
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Telus introduces HomePro: A solution for all connected home needs
Earlier in August, Telus International reported that the company has launched HomePro, an all-in-one solution for smart home products. It aims to help Canadians deal with the complexity of installing and managing multiple smart appliances. This is a subscription-based system that offers in-person as well as 24/7 online access to tech experts who can help with any issue related to connected home devices.
Their services include installation, device setup, troubleshooting, device protection coverage, etc. Furthermore, HomePro’s subscription fee also includes a monthly Amazon Prime membership. Launching this product is a decisive business move to tap into the growing trend of adopting smart home devices by Canadians.
Deploying smart building technologies all across Canada
In addition to this HomePro announcement, Telus International also announced around the same time that the company is speeding up its deployment of smart building technologies across residential and commercial projects all over Canada. This move will help them adopt technologies that can keep their projects aligned with the net-zero carbon emission mandates. It will also allow them to significantly reduce their energy consumption.
Telus’s innovative building technology leverages Internet of Things solutions. It enables retail organizations to monitor, optimize and control energy usage, facilitating savings and better customer experience, that too without any major hardware upgrades.
Given the increasing trend of adopting energy-efficient solutions, Telus International’s smart building solutions are a masterstroke that can help improve the company’s market share.
Bottom line
Telus International is an intriguing Canadian growth company, spun off from its telecommunications parent in an intriguing deal to unlock shareholder capital. Thus far, the company’s stock price has yet to impress investors, and this is a company that’s been on a downtrend of late.
However, I think Telus International may be turning the corner here. This is a company with some rather compelling growth catalysts on the horizon. And if the company’s fundamentals improve, there’s a clear-cut case for TIXT stock to take off in September.
This is a stock I’m putting on the watch list right now, and I’d invite investors to do the same.
