Rogers, Telus, and Bell Stocks Drop to Multi-Year Lows

Canada’s ‘Big 3’ telecoms, Rogers, Telus, and Bell, have seen their stock prices plummet to multi-year lows, driven by competitive wireless strategies that have failed to impress investors, reports Bloomberg.

The S&P/TSX Composite’s communications index has fallen nearly 16% since January. Rogers and Telus stocks are trading near 2016 levels, while Bell’s shares are at their lowest since 2013. Analysts suggest this downturn could be an opportunity for strategic buyers.

Adam Shine, a financial markets analyst at National Bank of Canada, says the slump is due to aggressive pricing strategies following Rogers’ acquisition of Shaw and Quebecor’s purchase of Freedom Mobile. This “promotional intensity” has impacted growth and share prices, with Bell down over 30%, Telus down 23%, and Rogers falling 20% since the deal closed in April 2023.

So far, only Telus-owned Public Mobile has matched the aggressive Canada-US plans made available from Freedom Mobile.

Despite these challenges, RBC Capital Markets analyst Drew McReynolds believes the sector is set for a rebound, citing recent underperformance as a potential buying opportunity. Investors will be closely watching Q2 results, starting with Rogers on July 24.

Encouraging signs–for investors– include recent price increases by Bell and Telus, which could signal more stable pricing ahead. We’ve seen prices go up across all flanker brands from the ‘Big 3’. Telus-owned Koodo increased its prices today, following in the footsteps of Bell’s Virgin Plus and Rogers’ Fido.