The BT share price is rising fast. Here is what I would do now

first_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Manika Premsingh | Monday, 8th March, 2021 | More on: BT-A The BT share price is rising fast. Here is what I would do now Our 6 ‘Best Buys Now’ Shares “This Stock Could Be Like Buying Amazon in 1997” Manika Premsingh owns shares of BT GROUP PLC ORD 5P. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. FTSE 100 telecom biggie BT (LSE: BT-A) is finally seeing an upturn in its share price, even if it is in fits and starts. The BT share price started its upward climb in November last year as the stock market rally started.Or so it appeared. By early January this year, it had started plunging again and remained uncertain in February. But since the start of March, it has risen by an impressive 14%. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Can the BT share price rise continue?I think the question for investors now is – can this rise continue? This question is important because there are at least two trends that suggest otherwise:#1. The BT share price is back to its pre-crash levels now, in line with a trend seen across other FTSE 100 stocks. This means that there has to be fresh impetus for the share price to rise from here. Is there?#2. When the stock market crash happened last year, the BT share price was already falling. In fact, it had been falling for a long time. So has anything changed fundamentally to allow a share price rise now?What guides the BT share price?The key point here is that there is a case for a rise in the BT share price if there are indeed positive fundamental changes at BT or if all shares prices are ready to rise on the back of sheer investor optimism. The latest BT share price rally coincides with the departure of Chair Jan du Plessis. In his four years with the company, the BT share price halved. But the fact is that the BT share price had been falling since late-2015. The company has a bunch of issues to deal with, including a competitive market and a business that requires huge investments. At least until early 2020 it had an impressive dividend yield. But even its dividends were cancelled last year, which left little incentive to buy the struggling stock.What happens next?I reckon that things can change for BT. It does intend to bring its dividend back. This should be a positive for income investors, going by BT’s high dividend yield in the past. While its financials suffered a setback in 2019, the fact is that otherwise it is a resilient, profit-making company with a market-leadership position, even if it is not exactly the fastest growing. But that could change too. And it is a cheap UK share right now. The company’s price-to-earnings ratio is at around 9 times. The takeawayI think on balance, the odds in favour of BT are even, considering the challenges it faces. Another stock market rally could tilt the odds firmly in its favour, though.Otherwise, however, as much as I like the company (and have already bought the share in the post-Covid-19 world), I would watch for a few more signs of turnaround before buying it again now. Just to be doubly sure at an uncertain time. Simply click below to discover how you can take advantage of this.center_img Image source: Getty Images. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Address I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Manika Premsinghlast_img

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