Credit: Shutterstock photoOn Jun 20, 2017, leading diversified Canadian communications and media company, Rogers Communications Inc.RCI was downgraded to a Zacks Rank #4 (Sell) from a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Rogers Communications operates in an intensely competitive wireless and cable TV industry. The company continues to face tough competition from market incumbents like TELUS Corp. TU and BCE Inc. BCE along with other small regional cable TV operators in the wireless market of Canada. Moreover, Shaw Communications Inc.'s SJR entry into the market with the WIND Mobile acquisition has heightened competition.
Roger Communication's media segment remains exposed to persistent softness in the advertising market. The company, like other cable companies, has lost viewers to video streaming service providers like Netflix because of their cheap source of TV programming. Such competitive threats from video streaming service providers led to the discontinuation of Shomi video streaming services, which was a major setback.
In spite of such downturns, shares of Rogers Communications have outperformed the Zacks categorized Cable TV industry's gain in the past three months. The stock price rose 10.99%, outshining the industry's gain of 8.63% over the same time frame.
Moreover, the company remains the first wireless operator in Canada to offer Internet of Things services like End-to-End Incident Management, Farm & Food Monitoring, and Level Monitoring to business enterprises. Its decision to purchase Tillsonburg Broadcasting Company Limited and its offering of Rogers Unison (a new mobile solution) to small businesses bode well for high-speed Internet customer growth.
We further believe that the company's plans to dump its Internet Protocol TV (IPTV) platform and adopt Comcast Corp.'s cloud-based X1 video platform should help it grow in its cable segment in the upcoming quarters.
Recent Events
On Jun 6, 2017, Rogers Communications' subsidiary, Rogers Media, Inc., signed two major deals which are likely to boost its business and open up scope for newer opportunities in the entertainment and media industry. Rogers Media inked a new deal with The Weather Company, which is a subsidiary of the Data and Analytics Platform business unit of International Business Machines Corporation IBM and with Iowa-based media conglomerate company, Meredith Corporation MDP .
We believe through this deal, Rogers Media will be able to expand and deliver brand-safe and premium-content environments to its advertising partners which will focus on lifestyle, entertainment, news and information verticals. Every month, more than 13.8 million Canadians visit Rogers Media digital properties across all devices. On the back of these new deals, Rogers Media digital network is expected to reach 24.7 million.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
International Business Machines Corporation (IBM): Free Stock Analysis Report
TELUS Corporation (TU): Free Stock Analysis Report
BCE, Inc. (BCE): Free Stock Analysis Report
Shaw Communications Inc. (SJR): Free Stock Analysis Report
Rogers Communication, Inc. (RCI): Free Stock Analysis Report
Meredith Corporation (MDP): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
