10 Oversold Canadian Stocks to Buy Right Now

7) TELUS International (Cda) Inc. (NYSE:TIXT)

% Decline Over Past Year: ~42%

Forward P/E (As of October 21): 6.69x

Number of Hedge Fund Holders: 9

TELUS International (Cda) Inc. (NYSE:TIXT) is engaged in designing, building, and delivering digital solutions for customer experience (CX) in the Asia-Pacific, Central America, Europe, Africa, North America, and internationally. TELUS International (Cda) Inc. (NYSE:TIXT), rebranding to TELUS Digital Experience later in Q3 2024, remains at the forefront of digitally transforming customer journeys.

Wall Street analysts believe that a recovery in IT spending is expected to materialize in the latter half of 2024, which should provide a boost to TELUS International (Cda) Inc. (NYSE:TIXT) ‘s performance. As and when organizations increase or resume their technology investments, the company might see an uptick in demand for its services. This should lead to strong revenue growth, better utilization rates, and potentially healthy pricing power.

The recovery in spending is expected to allow TELUS International (Cda) Inc. (NYSE:TIXT) to expand its customer base and deepen relationships with existing clients, resulting in larger, more profitable contracts. Together with good momentum with its 2 largest clients, TELUS Corporation and Google, the company saw stabilization in revenue with its third largest client, a leading social media network.

In another fundamental shift, TELUS International (Cda) Inc. (NYSE:TIXT) continues to grow its AI-related business, generating ~15% of the overall revenue in H1 2024, increasing 13% YoY. The company highlighted that AI-related opportunities make up ~10% of its overall sales funnel. For FY 2024, the company expects revenues of between $2,610 million – $2,665 million and adjusted diluted EPS of $0.39 – $0.44.