On May 3, we reiterate our Neutral recommendation on
Shaw Communications Inc.
), as the company's top and bottom line surpassed the Zacks
Consensus Estimate in the recently concluded quarter.
Why Kept Neutral?
Shaw Communications continues to consolidate its position
across Canada by gradually expanding its Wi-Fi network and
deploying high-speed DOCSIS 3.0 network in several western
Canadian markets. Moreover, the launch of "Shaw Go" -- an
innovative TV Everywhere service coupled with rate hikes will
trigger the top-line growth in the forthcoming quarters.
Furthermore, the acquisition of Canwest Global Communications
Corp. ("Canwest") which includes GlobalTV network will not only
help Shaw Communications to position itself as one of the leading
entertainment and communications companies in the Canadian
broadcasting industry but at the same time will also allow it to
diversify its operations, thereby creating better growth
prospects for the company.
However, the continuous loss of cable TV subscribers coupled
with intense competition from TelusCorp.'s popular Optik TV will
continue to act as headwinds for Shaw Communications, going
Currently, Shaw Communications has a Zacks Rank #3 (Hold).
Other Stocks Outlook in Related Industries
Other companies belonging to the same media sector are
Time Warner Inc.
Rogers Communications Inc.
). While both CBS Corporation and Time Warner Inc. have beaten
the Zacks Consensus Estimate, Rogers Communications missed the
Zacks Consensus Estimate.
CBS Corporation has a Zacks Rank #2 (Buy) while both Time
Warner Inc. and Rogers Communications have a Zacks Rank #3
CBS CORP (CBS): Free Stock Analysis Report
ROGERS COMM CLB (RCI): Free Stock Analysis
SHAW COMMS-CL B (SJR): Free Stock Analysis
TIME WARNER INC (TWX): Free Stock Analysis
To read this article on Zacks.com click here.