Canadian stock alert

CANA

CLOSING UPDATE: BCE decreases gains by 0.1%, led Communication services sector higher 17 October 2017 18:16 EDT

NEWS BITES - NORTH AMERICA

This is an end of day Alert, produced after today's Canadian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

BCE, Canada's largest communication services company by market capitalisation, has increased 0.9% to trade at CAD59.39 vs. the Communication services sector which strengthened 40.8 points (or 2.4%) to 1,721.2. Representing a weighting of about 47.4% of the sector, the stock accounted for 17.2% of today's gain. Trading volume was 59% of average at the end of the day. Compared with the S&P/TSX 60 Index which rose 1.7 points (or 0.2%) in the day, this represented a relative price increase of 0.7%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.11 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the Canadian market, the stock's relative price strength percentile is improving at 51 for 6 months, 53 for 3 months and 56 for 1 month.

+ The price increased 0.9% in the last week and 1.8% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Return on Equity 17.9% [15.6%]

+ Year-on-Year Earnings Growth of 11.7% [7.9%]

Other Bullish Signals include:

+ Tobin's Q Ratio is 1.1. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 13.3% in the last 3 years. This is better than the sector average of 4.9% and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity of 17.9% is better than sector average of 15.6%.

Note

BCE today is at a discount of 4.6% to the 12-month high of CAD62.25 on 26 Apr, 2017. It is at a premium of 8.4% to the 12-month low of CAD54.80 on 14 Nov, 2016.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Earnings/Growth of 1.94 [0.3]

Price/Sales of 2.4 [0.3]

TODAY'S ALERT

Afternoon Alert: BCE increases 1.0%, leads Communication services sector higher

17 October 2017 14:43 EDT

BCE Inc. (TSX:BCE) has increased 1.0% to trade at CAD59.47 vs. the Communication services sector which strengthened 41.5 points (or 2.5%) to 1,721.9. Representing a weighting of about 47.4% of the sector, the stock accounted for 19.6% of today's gain. Trading volume was 1.1 times average so far today.

BCE Inc. (T:BCE; TSE:BCE; N:BCE; CN:BCE)

ISIN: CA05534B7604

PermID: 4295860591

CIK: BCE Inc.

Source: www.BuySellSignals.com