Charter Communications (ticker: $CHTR ) is a media sector company which provides cable services to residential and commercial customers in the United States.
It offers subscription-based video services and also provides internet services as well as other media-related services.
The company was founded in 1993 and is based in Stamford, Connecticut.
As of the end of last year it had 29 million residential and small and medium business customers.
It has a market cap in excess of 100 billion USD and can therefore be categorised as a large cap stock.
While it is currently trading at a trailing P/E of 61, it has a forward P/E of 26.6 which does not make it expensive considering that it is a growth stock with excellent track record.
In fact, based on current estimates, it is expected to grow its earnings by 45% over the next 5 years which corresponds to a 5 year expected PEG ratio of 0.84, implying that it is currently trading at a discount.
As it is a growth stock it does not offer a dividend. Despite that, it has profusely rewarded its investors over the past years, with more than a 36% capital appreciation per year in the last 3 years and a stunning 30% per year over the past 10 years. For comparison, investing in a S&P500 ETF over the same 10 years would have yielded a 9.4% annual return.
YTD the stock is actually up, sporting a 3.9% increase, while the S&P500 is down 11.8%.
Charter communications is also a primus inter pares (first among equals) as it has fared better than its peers and outperformed $XLC (a popular communications services ETF which also features the stock amongst its holdings) by 36% over the past year.
The stock has a beta of 0.8 which makes it less volatile than the stock market average.
The company reported Q1 earnings on May 1st missing expectations. However, it showed a significant rise in customer numbers as well as in revenue which made the stock go up after the earnings release.
From a technical analysis perspective, the stock is well above the Fibonacci 61.8% retracement line from its mid February 2020 highs which may indicate further short-term upside potential.
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