Charter Communications, Inc. (CHTR) operates as a broadband connectivity and cable operator company serving residential and commercial customers. With a market cap of $53.7 billion, Charter Communications operates in 41 states with services available to more than 58 million homes and businesses in markets of all demographics and sizes.
Companies worth $10 billion or more are generally described as "large-cap stocks," Charter Communications fits this bill perfectly. Given the company's extensive customer base, its valuation above this mark is not surprising. It is the second-largest cable operator in the U.S. and the country's largest and fastest-growing rural internet provider.
Despite its strengths, CHTR has slipped 8.9% from its 52-week high of $415.27 touched on Nov. 13. CHTR has gained 15.6% over the past three months, lagging behind the iShares U.S. Telecommunications ETF’s (IYZ) 16.3% gains during the same time frame.
Over the longer term, Charter’s performance looks even grimmer. CHTR stock has declined 2.6% on a YTD basis and gained 1% over the past 52 weeks, underperforming IYZ’s 20.9% gains in 2024 and 24.9% returns over the past year.
To confirm the recent upturn, CHTR has consistently traded above its 200-day moving average since late July and above its 50-day moving average since late October.
Charter Communications’ stock prices soared 11.9% after the release of its better-than-expected Q3 results on Nov. 1. Driven by the surge in mobile services, advertising sales and other revenues, the company’s topline grew by a resilient 1.6% year-over-year to $13.8 billion, exceeding Wall Street’s expectations. Meanwhile, it reported a staggering 47.6% year-over-year growth in free cash flows, totaling $1.6 billion.
Furthermore, the company showcased disciplined expense management, which led to a 3.6% year-over-year growth in adjusted EBITDA, reaching $5.6 billion. Meanwhile, its adjusted EPS of $8.82 surpassed analysts’ estimates by 3.2%, bolstering investors’ confidence.
Charter Communications has lagged behind its peer Liberty Broadband Corporation’s (LBRDA) marginal dip in 2024 and 5.1% gains over the past year.
Among the 24 analysts covering the CHTR stock, the consensus rating is a “Hold.” The mean price target of $412.67 suggests a 9% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- Trading Alert: Megaphone Pattern in Cameco (CCJ) Warrants a Possible Long Iron Condor
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