10 Oversold Global Stocks To Buy Right Now

8. BCE Inc. (NYSE:BCE)

14-day RSI Score: 29.00

Number of Hedge Fund Investors In Q3 2024: 20

BCE Inc. (NYSE:BCE) is one of the largest telecommunications companies in Canada. The firm offers a variety of products and services such as broadband internet and television broadcasting to consumers and wholesale providers. As a result, BCE Inc. (NYSE:BCE) is operating in a rapidly dynamic market that is shifting to fiber and fixed wireless internet and video streaming services. The firm’s shares are down by 34.5% year-to-date driven by customer churn and a high debt load that investors would love to see resolved. During its quarter ending in September, BCE Inc. (NYSE:BCE) reported a whopping 76.8% postpaid customer drop for its wireless division. The firm also took a $2.1 billion impairment charge for its US Bell Media’s TV and radio properties. Therefore, resolving debt issues sits at the center of BCE Inc. (NYSE:BCE)’s hypothesis as was clear in November when its decision to buy fiber firm Ziply led to the shares dropping by 9% as investors were disappointed that the proceeds would not be used to pay down debt.

BCE Inc. (NYSE:BCE)’s management believes that its postpaid churn isn’t as bad as it looks. Here’s what it shared during the Q3 2024 earnings call:

“While postpaid churn this quarter was up against the backdrop of elevated competitive activity relative to seasonal trends and higher than we’d like, it did represent a third consecutive quarter of deceleration in the year-over-year rate of increase.

So we’re moving in the right direction when it comes to churn. Prepaid net adds were up considerably versus last year, increasing to 69,085. This represents our best quarterly results since Q3 2019, and it’s a direct reflection of the strategy to increasingly address the Flanker and newcomer market with our prepaid brand. To close off on wireless, ARPU was down 3.4%. As expected, this result represents the accumulation of excessive rate plan discounting and promotional offer intensity over the past year. Until prices stabilize, we’ll continue to focus our efforts on delivering enhanced customer experiences and value and on improving wireless ARPU and margins. Although we believe that Q3 should be the peak quarter of decline, the magnitude and timing of ARPU recovery will depend on how aggressive Black Friday and holiday promotions will be this year.”