RCI Should I Buy
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0.000
0.000(0.000%)
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Buy now for a near-term rebound setup. RCI is coming off a sharp -2.85% regular-session drop to 37.61, but the technical trend remains bullish (SMA_5 > SMA_20 > SMA_200 with a positively expanding MACD). Q4 (2025/Q4) results were a clear upside catalyst (EPS/revenue beat and strong free cash flow growth), and options positioning is risk-on (low put/call open-interest ratio). While Wall Street sentiment is mixed/neutral and the quantified pattern outlook implies some 1-month weakness, the current price is sitting close to the pivot/support area (~36.97), which favors an impatient, buy-now approach aiming for a quick move back toward 38.23–39.01 resistance.
Trend/structure: Bullish moving-average stack (SMA_5 > SMA_20 > SMA_200) indicates an intact uptrend despite today’s pullback. Momentum: MACD histogram +0.201 and expanding suggests momentum is turning/remaining constructive. RSI(6) ~61.8 is neutral-to-slightly-bullish (not overbought). Key levels: Pivot 36.97 is the immediate “line in the sand.” First resistance R1 38.23, then R2 39.01. Supports S1 35.70 and S2 34.92. Price action context: Today’s -2.85% dip looks more like a pullback within an uptrend than a breakdown (price still near pivot and above deeper supports).
Intellectia Proprietary Trading Signals
Earnings/FCF: Q4 2025 results were strong—non-GAAP EPS C$1.51 beat expectations; revenue C$6.17B (+12.6% YoY); free cash flow up 16% YoY to ~$1B.
Dividend: Quarterly dividend declared (CAD 0.50), reinforcing shareholder-return appeal.
Industry note: Barclays cited improving pricing momentum in the Canadian telecom environment.
Structural headwinds: Barclays still flags structural pressures that can weigh on growth even with better pricing.
Street skepticism: Morgan Stanley remains Underweight even after raising its target.
Short-term statistical drift: The provided pattern-based outlook implies a negative bias over the next month (-4.65% expected), which can cap follow-through after rallies.
Margin trend: Gross margin declined YoY (pressure on profitability quality despite earnings growth).
Latest quarter: 2025/Q4. Growth: Revenue 6.172B (+12.61% YoY), Net Income 743M (+33.15% YoY), EPS 1.37 (+31.73% YoY) — strong top-line and earnings growth. Quality watch-out: Gross margin 23.77, down 4.11% YoY, indicating margin compression even as earnings rose (could be mix/cost/competition effects). Overall read: Fundamentally supportive quarter with strong cash generation, but margin slippage is the main blemish.
Recent trend: Price targets have been nudged up (Barclays $33→$36→$37; Morgan Stanley C$46→C$50), but ratings skew cautious: Barclays stays Equal Weight; Morgan Stanley stays Underweight; Desjardins downgraded to Hold from Buy. Wall Street pros: Improving pricing momentum, strong Q4 execution, and shareholder returns (dividend). Wall Street cons: Competitive/structural headwinds and a reluctance to underwrite sustained growth (evidenced by neutral/underweight stances despite higher targets). Influential/political flows: No recent congress trading data available; hedge funds/insiders reported as neutral with no significant recent trend.
