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.
