Stock of the Day

January 1, 2021

BCE (BCE)

$23.89
+$0.19 (+0.8%)
Market Cap: $21.79B

About BCE

BCE Inc., a communications company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. The company operates through two segments, Bell Communication and Technology Services, and Bell Media. The Bell Communication and Technology Services segment provides wireless products and services including mobile data and voice plans and devices; wireline products and services comprising data, including internet access, internet protocol television, cloud-based services, and business solutions, as well as voice, and other communication services and products; and satellite TV and connectivity services for residential, small and medium-sized business, government, and large enterprise customers. This segment also buys and sells local telephone, long distance, and data and other services from or to resellers and other carriers; and operates consumer electronics retail stores. The Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services, and out-of-home advertising services. BCE Inc. was founded in 1880 and is headquartered in Verdun, Canada.

BCE Bull Case

Here are some ways that investors could benefit from investing in BCE Inc.:

  • BCE Inc. has a strong market presence in Canada, providing essential services such as wireless, wireline, Internet, and television, which are critical for both residential and business customers.
  • The company recently saw a significant investment from SG Americas Securities LLC, which purchased 745,088 shares valued at approximately $17.27 million, indicating confidence from institutional investors.
  • As of the latest trading session, BCE Inc. stock is priced at $23.54, which may present a buying opportunity for investors looking for value in the utilities sector.
  • 41.46% of BCE Inc.'s stock is owned by institutional investors and hedge funds, suggesting a level of trust and stability in the company's operations and future prospects.
  • BCE Inc. has a diverse revenue stream through its two segments, Bell Communication and Technology Services, and Bell Media, which can help mitigate risks associated with market fluctuations.

BCE Bear Case

Investors should be bearish about investing in BCE Inc. for these reasons:

  • The stock has received multiple downgrades from analysts, including a recent downgrade from Edward Jones from a "buy" to a "hold" rating, which may indicate concerns about future performance.
  • BCE Inc. has a notably high dividend payout ratio of 4,028.57%, which could raise concerns about sustainability, as this figure suggests that the company is paying out significantly more in dividends than it earns in profit.
  • Recent trading volumes have been lower than average, with only 1,099,572 shares exchanged compared to an average of 3,282,953, which may indicate reduced investor interest or confidence.
  • The stock has a high price-to-earnings (P/E) ratio of 336.21, suggesting that it may be overvalued compared to its earnings, which could deter value-focused investors.
  • Analysts have issued three sell ratings and eight hold ratings, reflecting a cautious outlook on the stock's potential for growth in the near term.

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