Telstra Group Ltd (ASX: TLS) shares are slipping today.
Shares in the S&P/ASX 200 Index (ASX: XJO) telco provider closed yesterday trading for $4.88. In early afternoon trade on Tuesday, shares are swapping hands for $4.865 apiece, down 0.3%.
For some context, the ASX 200 is up 0.3% at this same time.
Taking a step back, Telstra shares have gained 24.4% over the past 12 months, racing ahead of the 4.9% one-year gains delivered by the benchmark index. And that's not including two fully franked interim dividends Telstra paid out over the full year.
Now, here's why Family Financial Solutions' Jabin Hallihan expects more outperformance from the ASX 200 telco in the months ahead (courtesy of The Bull).
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Should you buy Telstra shares today?
"Telstra is Australia's dominant telecommunications provider with infrastructure‑like cash flows," Hallihan said.
Citing the first reason he has a buy recommendation on Telstra shares, Hallihan said:
Reported net profit after tax of $2.3 billion in full year 2025 was up 31% on the prior corresponding period. Cash earnings per share of 22.4 cents were up 12%. The shares were trading at $4.935 on February 5, below our fair value of $5.40.
At the current share price, Telstra is trading 11.0% below Family Financial Solutions' fair value for the stock.
As for the second reason you might want to buy the ASX 200 telco, Hallihan said, "Cost discipline, share buy-backs and resilient mobile earnings support steady upside in a market that still rewards defensiveness."
Share buy-backs can have a material impact on a company's share price, as they reduce the number of shares available to the market.
Following Telstra's full year FY 2025 results release on 14 August, the company announced an additional on-market share buy-back of up to $1 billion.
Telstra CEO Vicki Brady said the buy-back was enabled by earnings growth and a strong balance sheet.
"We are focussed on continuing to deliver value for our shareholders, including through our core business cash flow, active portfolio and investment management, and disciplined capital management," she said on the day.
Which brings us to the third reason you might want to buy Telstra shares today, the passive income on offer.
According to Hallihan:
On top of this, Telstra pays reliable, fully franked dividends. Its full year dividend of 19 cents a share in fiscal year 2025 was up 5.6% on the prior corresponding period. TLS was recently trading on a dividend yield of 3.85%.
