Stock of the Day

January 1, 2021

BCE (BCE)

$21.58
+$0.19 (+0.9%)
Market Cap: $19.89B

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.:

  • The current stock price is around $22, which may present a buying opportunity for investors looking for value in the utilities sector.
  • BCE Inc. has shown resilience with a recent quarterly earnings report exceeding expectations, indicating strong operational performance.
  • Institutional investors hold a significant portion of BCE Inc.'s stock, suggesting confidence in the company's long-term prospects.
  • Recent upgrades from analysts, including a strong-buy rating, reflect positive sentiment and potential for stock appreciation.
  • The company has a history of paying dividends, which can provide a steady income stream for investors, although recent adjustments have been made.

BCE Bear Case

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

  • Recent reports indicate a significant reduction in holdings by some institutional investors, which may signal a lack of confidence in the stock's future performance.
  • The company has a high debt-to-equity ratio, which could pose risks in terms of financial stability and flexibility.
  • Analysts have issued mixed ratings, with some maintaining sell or underperform ratings, indicating potential concerns about the stock's valuation.
  • Market volatility and economic uncertainties could impact BCE Inc.'s performance, particularly in the utilities sector.
  • Recent adjustments to the dividend policy may raise concerns among income-focused investors about the sustainability of returns.

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