Does the current BT share price represent a FTSE 100 opportunity?

first_img Grab your free report – while it’s online. Image source: Getty Images. Jabran Khan | Thursday, 27th May, 2021 | More on: BT-A Does the current BT share price represent a FTSE 100 opportunity? Looking for new share ideas?Grab this FREE report now.Inside, you discover one FTSE company with a runaway snowball of profits.From 2015-2019…Revenues increased 38.6%.Its net income went up 19.7 times!Since 2012, revenues from regular users have almost DOUBLEDThe opportunity here really is astounding.In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer?You could have the full details on this company right now. 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. Enter Your Email Address Our 6 ‘Best Buys Now’ Sharescenter_img One FTSE “Snowball Stock” With Runaway Revenues It would be a fair statement to say BT (LSE:BT.A) shares have performed poorly for a few years now. Based on past performance and a slight resurgence in the past calendar year to date, could I consider the BT share price as a FTSE 100 opportunity for my portfolio? Let’s take a look.BT share price on the up in 2021Five years ago the BT share price was 431p, which means it has dropped 59% based on current levels. The Covid-19 pandemic and ensuing market crash last year saw its share price drop from 154p per share to 100p per share.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…As I write, BT shares are trading for 174p a share. This a 28% increase in 2021 to date. So there are signs of life from the FTSE 100 incumbent.3 reasons to be optimistic about the BT share priceFirstly, insiders are buying BT shares, which is always a positive sign in my eyes. CEO Philip Jansen purchased approximately £2m worth of shares last week. Insiders don’t buy stock if they feel performance isn’t on the up. In addition to that, as the CEO, Jansen will have an inside track on developments at the FTSE 100 incumbent.Linked to insiders buying shares, BT’s management as a whole is exuding confidence about future prospects. In the full-year results for the year ended 31 March, management noted that a few uncertainties and barriers (such as a pension valuation and the Wholesale Fixed Telecoms Market Review) had been removed.These had been affecting performance and contributing to the dwindling BT share price. Management is predicting consistent and predictable growth. There is no guarantee that predicted growth is achieved, although the confidence is good to hear.Finally, broker sentiment towards BT has improved recently. In one of the most recent examples, Barclays decided to raise its price target to 190p from 170p. At current levels, this could be the right prediction on Barclays’ part.FTSE 100 opportunity or one to avoid?I believe the BT share price is currently quite cheap. As is BT’s overall valuation. It has a price-to-earnings ratio of eight, which is below the FTSE 100 average of nearly 17. I think that if BT’s plans and optimism come to fruition, its value will increase.I do have some serious reservations when it comes to BT shares. Firstly, it has over £17bn worth of debt. Debt levels are something I refer to when looking to make investment decisions. In addition to debt, BT hasn’t actually been very profitable which makes me believe this debt will weigh down the BT share price and its overall investment viability. Its return on capital employed (ROCE) is very low for the past three years.Overall, I would not buy BT shares for my own portfolio, despite the cheap valuation. I wouldn’t class BT as a quality company to invest my hard-earned cash in right now, and I believe there are better stocks out there right now. Simply click below to discover how you can take advantage of this. 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. Jabran Khan has no position in any of the shares mentioned. 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. See all posts by Jabran Khanlast_img

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