Here's Why Your Portfolio Should Have TELUS (TU) Stock Now

On Aug 16, we issued an updated earnings research report on the leading Canadian telecom operator, TELUS Corp. (NYSE:TU) .

In fact, the stock price of the company has inched up 6.8% outperforming the industry’s growth of 2.5% in the last three months.

Recently, TELUS reported its second-quarter 2017 results where total revenue came in at approximately $2,433.6 million, up 3.9% year over year. However, GAAP net income was approximately $282 million, down 7.2% year over year.

Moreover, the company’s Wireless revenues increased 5% year over year to approximately $1,380.7 million. Net wireless subscriber gain in the reported quarter was 83,000. Postpaid customer net addition was 99,000. Prepaid customer net loss was 16,000. Whereas, the company’s Wireline revenues increased 2.5% year over year to approximately $1,099.6 million.

During the reported quarter, TELUS added 5,000 TV subscribers and 17,000 high-speed Internet subscribers.

Notably, in an effort to stay ahead in a highly competitive market, on Jul 13, TELUS and RingCentral, Inc. (RNG), the leading provider of enterprise cloud communication and collaboration solutions, announced the expansion of TELUS' cloud communications portfolio for Canadian businesses with the introduction of TELUS Business Connect Mobile.

Meanwhile, TELUS and Huawei, one of the world's largest information and communications technology companies, successfully completed trials of 5G wireless technology using the global 3GPP standards platform.

The trial is a part of TELUS and Huawei’s ‘5G Living Lab’ in Vancouver, which resulted in wireless speeds of up to 200 times faster than current LTE networks. Additionally, it demonstrated the potential for 5G technology to deliver wireless-to-the-premises connectivity as it has the necessary speed and reliability, allowing smart homes and businesses access to 5G. We believe, this achievement is an important step toward building and deploying 3GPP-unified 5G networks around the world.

On, Jun 5, TELUS announced that it has decided to spend C$4.2 billion ($3.11 billion) on new broadband and wireless infrastructure in Alberta by 2020.

Also, the comapny has teamed up with Mojio to deliver connected car services in Canada. Mojio devices will allow drivers to connect their vehicles to the Internet through the TELUS network, thus allowing easy tracing, monitoring and identification of cars using smartphones.

Again, it introduced the TELUS Global Internet of Things (IoT) Connectivity platform to deliver seamless connectivity and simplified billing across 200 networks globally, to support the expansion of Canadian business enterprises.

However, the Canadian telecom market has become intensely competitive with rival companies offering newer quad-play bundled services. These services comprise wireless, wireline, high-speed broadband and voice products. Furthermore, TELUS competes with the likes of Rogers Communications Inc. (NYSE:RCI) , Shaw Communications Inc. (NYSE:SJR) and BCE Inc. (TO:BCE) .

Overall, we believe these factors substantiates TELUS’ Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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