Why Now Is the Time to Buy Telus Stock

Here’s why long-term investors may want to consider Telus (TSX:T) stock on any sort of material dips moving forward.

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Most experts always advise never to time the market. The reason is simple: one bad move can result in significant losses, wiping out any sort of gains one made from previous trades. Additionally, the market can be unpredictable at times, generally moving higher with sporadic bouts of selling. Trying to time those dips can be difficult, and periods of momentum can easily be disrupted by a shock that couldn’t be forecasted.

However, when investors make informed decisions by analyzing the company’s activities, they can buy the right stocks at the right time and book hefty profits. Such is the case with the Telus (TSX:T) stock.

Here are some reasons why investors should consider buying this telecom giant on its recent dip.

Strong Q3 2023 performance

Telus’s recent third-quarter (Q3) earnings results highlighted some spectacular financial and operational performance. The telecom company had a total customer growth of 406,000, exhibiting a growth of 59,000 from last year. 

Additionally, Telus’s net mobile phone and connected device additions also recorded significant growth, with the figures reaching 160,000 and 179,000 respectively. Moreover, Telus’s consolidated operations revenue, along with other income, reached US$5 billion. This represents a 7.2% increase from last year’s same quarter.

Telus achieves success in its IoT-to-satellite trials

Skylo and TerreStar have successfully completed their recent Internet of Things (IoT) to satellite trials. The hope is that these companies will enable customers to send text messages, conduct voice calls and even connect to IoT devices by leveraging satellite connectivity. 

As a result, Canadians can soon have a future that is devoid of no-coverage zones. Customers can enjoy high-grade connectivity from any part of the country, and businesses can operate sustainably and efficiently even from remote areas. That’s quite the selling point for Telus’s network in its core markets and could be a key driver many investors aren’t watching carefully enough.

This project also aims at providing backup connectivity to ensure the availability of emergency services even when cellphone towers are damaged. Furthermore, Telus plans on facilitating real-time data visibility in order to provide site-specific water and temperature information to farmers. This move will significantly improve agricultural activities in remote areas. 

Key partnerships pick up

Telus is entering a partnership with Flo to improve the company’s customer reliability. Over the next five years, Flo will use Telus’s IoT connectivity platform to provide real-time visibility across approximately 60,000 electric vehicle chargers in both the U.S. and Canada. 

This will enable the company to provide remote support and diagnostics services to ensure that its commercial and public charging stations are working as per expectations. 

Bottom line

Given Telus’s current projects, this company is set to drive sustainable growth in the long run. Thus, now is the right time to buy this stock and capitalize on its growth prospects, at least for those with a truly long-term investing time horizon.

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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.

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