15 Best Beaten Down Stocks to Invest In

6) BCE Inc. (NYSE:BCE)

% Decline on a YTD Basis: ~34.4%

Number of Hedge Fund Holders: 20

BCE Inc. (NYSE:BCE) is a communications company that provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada.

BCE Inc. (NYSE:BCE) faced some challenges, which led to a decline in its stock price. The company reported total operating revenues of C$5,971 million ($4,377 million), reflecting a decline of 1.8% YoY. Wall Street analysts gave a consensus estimate of $4,450 million. This YoY fall was primarily due to lower product revenues. Apart from this, BCE Inc. (NYSE:BCE)’s unsustainable debt load weighed over its balance sheet, raising concerns among investors. As of September 30, the company had a net debt of C$39.2 billion. Mounting levels of debt attract higher interest payments. The aggressive rate hikes by central banks impacted BCE Inc. (NYSE:BCE)’s stock. Despite being a dividend player, its yields were not as appealing as safe investment instruments.

However, Wall Street experts believe that the tides may be turning now. Moving forward, BCE Inc. (NYSE:BCE)’s stock is expected to be aided by the recent acquisition of Ziply Fiber. This provides the company with a strong foothold in the competitive U.S. telecommunications landscape and diversifies its revenue streams. The acquisition also expands its service offerings beyond its traditional Canadian market.

As compared to the Canadian market, the US market provides a larger customer base and potentially higher average revenue per user (ARPU). On the cost side, BCE Inc. (NYSE:BCE) should achieve economies of scale in areas including network equipment procurement, technology development, and back-office operations. On the revenue front, BCE Inc. (NYSE:BCE) can leverage its experience in bundling services and cross-selling to roll out new offerings.