It is a dominant telecom stock with one of the best-known brands in Canada and a company that plays a crucial role in the country’s infrastructure. That’s why Rogers has long been seen as a stock that investors can buy and hold for the long term.
Telecom stocks are consistently among the best buy-and-hold stocks to consider because they possess long-lived 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 term is that you want to find high-quality companies to buy that can generate stable cash flow, reinvest strategically, and grow their returns over time.
That’s why Rogers is one of the best blue chip stocks to buy for the long term. It’s not a stock you buy expecting explosive growth, but it’s a stock you buy for sustainability, scale and consistent long-term growth potential.
Sometimes you find stocks you like, but you don’t want to pull the trigger just yet. You understand that the company is of high quality, but at the current price that does not make complete sense. That doesn’t mean you have to pass on the shares forever.
Instead, you can put it on your watchlist and wait patiently while you continue investing elsewhere. Either the price comes to you in the end, or the company proves itself enough that you feel comfortable buying at higher levels. So even if you’re not compelled to buy Rogers stock today, that doesn’t mean it’s not worth buying at all.
Therefore, the question of whether Rogers stock would be a buy under $40 is worth exploring, even if the stock isn’t currently trading there.
Before you can even assess Rogers’ valuation, it’s essential to first 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. The wireless segment remains the core of the business and the largest driver of both revenue and profitability.
The appeal of Rogers’ business is that wireless is an essential service, and the demand for connectivity will continue to grow in the long term. Data usage does not decrease, giving the company a solid foundation over time.
While Rogers’ core businesses don’t change much from year to year, one of the biggest things investors and analysts will be looking at 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 fiber networks and 5G infrastructure, Rogers is now at a stage where capital spending should normalize. That puts more emphasis on generating free cash flow, which is critical for a company with significant debt.
Furthermore, as the Shaw acquisition is integrated and management continues to seek cost efficiencies and margin improvements, Rogers’ execution in the coming years will largely determine the stock’s attractiveness as a long-term investment.
Why Rogers stock would be a no-brainer buy under $40
Even at its current price, Rogers doesn’t seem particularly expensive for a high-quality blue-chip telecom stock with core assets and recurring revenue.
Rogers is even currently trading as a forward enterprise value (EV) to earnings before interest, taxes, depreciation and amortization (EBITDA) 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.
Additionally, the stock now offers a current yield of around 4%, which is above the five-year average forward yield of 3.7%.
Therefore, Rogers stock is already trading somewhat undervalued in this environment, which, for a high-quality Canadian stock, makes it certainly worth considering.
So if the price ever fell below $40, it wouldn’t be just a buy; it would be a bargain for those looking for a high-quality Canadian telecom stock for the long term.
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