The Motley Fool

BT Group plc Could Help You Retire Early

BT

When thinking about retirement, many investors choose to focus on potential long-term shifts in an industry’s structure.

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...

For instance, this could be a new entrant to the industry, a new product, or some new technology that alters the status quo in favour of one or more companies.

Indeed, it could be argued that there has been something of a structural shift in the subscription TV market, with BT (LSE: BT-A) (NYSE: BT.US) ‘parking its tanks on the lawn’ of BSkyB in the last year as so, as it has successfully bid for Champions League Football as well as making inroads into Premier League football and other sports, such as Moto GP.

Therefore, looking at the long term, BT could be in a position to reduce BSkyB’s dominance of the highly lucrative subscription TV market, or even dominate that space itself.

Of course, BT had a fantastic 2013, during which time its shares gained around 63%. Over the last year it has delivered capital gains of 44%, while the FTSE 100 is up just 2%. Clearly, the market has welcomed the decision by BT to take on BSkyB’s stranglehold on sports rights.

However, BT remains a stock with considerable upside — particularly if it can show the market that its foray into sports rights is working in the form of more customers. The early signs in terms of increased customer numbers were promising and showed that BT was slowly starting to make the investment in sport payoff, although due to the high cost it may turn out to be something of a loss leader for the company.

Trading on a forward price-to-earnings (P/E) ratio of 13.3 hardly makes BT seem expensive when the FTSE 100 is trading on a P/E of 13.6. So, it is difficult to say that shares look particularly expensive at the moment.

Indeed, it could be argued that they are cheap, since BT has above-average growth prospects and could be a major beneficiary from the structural shift in the subscriprion TV market. Although it may take some time for the investment to come good, BT looks to be well-placed to be a major force in future. Trading on a P/E slightly below that of the wider, it could be one for your retirement portfolio.

“This Stock Could Be Like Buying Amazon in 1997”

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.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

> Peter does not own shares in BT. The Motley Fool has recommended shares in BSkyB.

Our 6 'Best Buys Now' Shares

The renowned 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.

Simply enter your email address 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.