Is Rogers Stock a Buy Under $40?

There’s no doubt that one of the best and most popular blue-chip stocks that investors can buy on the TSX is Rogers Communications (TSX:RCI.B).

It’s a dominant telecom stock with one of the best-known brands in Canada and a business that plays a critical role in the country’s infrastructure.  That’s why Rogers has long been viewed as a stock investors can buy and hold for the long term.

Telecom stocks are always some of the best buy-and-hold stocks to consider because they own long-life assets, generate recurring revenue, and provide essential services that people and businesses rely on regardless of economic conditions.

The whole point of investing for the long haul is that you want to find high-quality businesses to buy that can generate steady cash flow, reinvest strategically, and compound their returns over time.

That’s why Rogers is one of the best blue-chip stocks to buy for the long haul. It’s not a stock you buy expecting explosive growth, but it is one you buy for durability, scale, and its consistent long-term growth potential.

Sometimes you find stocks you like, but you don’t want to pull the trigger just yet. You understand the business is high quality, but at the current price, it doesn’t quite make sense. That doesn’t mean you have to pass on the stock forever.

Instead, you can put it on your watchlist and wait patiently while continuing to invest elsewhere. Either the price eventually comes to you, or the business proves itself enough that you’re comfortable buying at higher levels. So even if you’re not compelled to buy Rogers stock today, that doesn’t mean it isn’t worth buying at all.

That’s why the question of whether Rogers stock would be a buy under $40 is worth exploring, even if the stock isn’t trading there right now.

How is the telecom stock performing today?

First off, before you can even evaluate Rogers’ valuation, it’s essential to understand what Rogers does and what kind of company you’re actually buying.

As most investors know, Rogers operates one of the largest and most important telecom platforms in Canada. Its wireless segment remains the core of the business and the biggest driver of both revenue and profitability.

What’s compelling about Rogers’ operations is that wireless is an essential service, and long-term demand for connectivity continues to grow. Data usage isn’t slowing down, which provides a solid foundation for the business over time.

While Rogers’ core operations don’t change much from year to year, one of the biggest areas investors and analysts will be watching in 2026 is the company’s financial performance, especially how much free cash flow it can generate.

After years of heavy spending to build out fibre networks and 5G infrastructure, Rogers is now at a stage where capital spending should begin to normalize. That puts more emphasis on free cash flow generation, which is critical for a company with a significant debt load.

Furthermore, with the Shaw acquisition now integrated and management continuing to look for cost efficiencies and margin improvements, Rogers’ execution over the next few years will largely determine how attractive the stock is as a long-term holding.

Why Rogers stock would be a no-brainer buy below $40

Even at its current price, Rogers doesn’t look particularly expensive for a high-quality blue-chip telecom stock with essential assets and recurring revenue.

In fact, Rogers currently trades at a forward enterprise value (EV) to earnings before interest, taxes, depreciation and amortization (EBITDA) ratio of just 7.8 times. That’s not extremely cheap. However, it is below Rogers’ five-year average forward EV/EBITDA ratio of 8.1 times.

Moreover, the stock is now offering a current yield of roughly 4%, which is above its five-year average forward yield of 3.7%.

Therefore, Rogers stock is already trading slightly undervalued in this environment, which, for a high-quality blue-chip Canadian stock, makes it certainly worth considering.

So, if it ever did dip below $40, it wouldn’t just be a buy; it would be a steal for those looking to own a high-quality Canadian telecom stock for the long haul.

The post Is Rogers Stock a Buy Under $40? appeared first on The Motley Fool Canada.

Should you invest $1,000 in Rogers Communications Inc. right now?

Before you buy stock in Rogers Communications Inc., consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Rogers Communications Inc. wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,827.88!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 102%* – a market-crushing outperformance compared to 81%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of January 15th, 2026

More reading

• Outlook for Rogers Communications Stock in 2026
• 3 Must-Have Blue-Chip Stocks for Canadian Investors
• The Smartest Dividend Stocks to Buy With $500 Right Now
• Should You Buy Rogers Stock for its 4% Dividend Yield?

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool recommends Rogers Communications. The Motley Fool has a disclosure policy.