BCE Inc. (BCE) Shares: Cheap or Risky?

BCE Inc. (NYSE:BCE) saw an upside of 0.12% to close Friday at $40.69 after adding $0.05 on the day. The 5-day average trading volume is 1,326,240 shares of the company’s common stock. It has gained $42.23 in the past week and touched a new high 1 time within the past 5 days. An average of 1,267,660 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,454,384.

BCE’s 1-month performance is -7.86% or -$2.80 on its low of $40.48 reached on 08/18/23. The company’s shares have touched a 52-week low of $39.88 and high of $50.83, with the stock’s rally to the 52-week high happening on 05/01/23. YTD, BCE has lost -7.42% or -$3.26 and has reached a new high 12 times. However, the current price is down -19.95% from the 52-week high price.

Valuation Metrics

BCE stock has a beta of 0.63. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.04 while the price-to-book (PB) in the most recent quarter is 2.90.

BCE Inc.’s quick ratio for the period ended June 29 was 0.50, with the current ratio over the same period at 0.60. As well, the company’s long term debt to equity for the quarter ending June 29 was 1.63, while the total debt to equity was 1.98. In terms of profitability, the gross margin trailing 12 months is 67.40%. The trailing 12-month EBITDA margin is 42.19% while for the period ending June 29, BCE Inc.’s operating margin was 20.40%. The firm’s gross profit as reported stood at $4.14 billion against revenue of $18.59 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 8.21% to $2.44 billion, while revenue of $0.0 was 100.0% off the previous quarter. Analysts expected BCE to announce $0.59 per share in earnings in its latest quarter, but it posted $0.58, representing a -1.70% surprise. EBITDA for the quarter stood at more than $1.9 billion. BCE stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 36.15 billion, with total debt at $34.35 billion.

Let’s look briefly at BCE Inc. (BCE) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 18 August was 23.74% to suggest the stock is trending oversold, with historical volatility in this time period at 10.87%.

The stock’s 5-day moving average is $41.06, reflecting a -3.65% or -$1.54 change from its current price. BCE is currently trading -8.44% above its 20-day SMA, -8.42% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -11.31% and SMA200 by-9.78%.

Stochastic %K and %D was 3.32% and 3.55% and the average true range (ATR) pointed at 0.55. The RSI (14) points at 27.27%, while the 14-day stochastic is at 8.11% with the period’s ATR at 0.56. The stock’s 9-day MACD Oscillator is pointing at -0.76 and -0.98 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for BCE Inc. (NYSE: BCE), Scotiabank downgraded it to a Sector perform rating. They previously had a Sector outperform rating on the stock. Analysts offering their rating for BCE stock have a consensus rating for the stock as Hold. Currently, 0 brokerage advisors rate BCE as a “sell,”, while 12 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 2 rates the stock as overweight while 3 have offered a “buy” rating.

What is BCE’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $41.90 and a high of $52.90, with their median price target at $45.64. Looking at these predictions, the average price target given by analysts is for BCE Inc. (BCE) stock is $46.75.