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Why Charter Communications (CHTR) Could Be Positioned for a Slump

Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.

One such stock that you may want to consider dropping is Charter Communications, Inc.CHTR , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #4 (Sell) further confirms weakness in CHTR.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen three estimates moving down in the past 30 days, compared with just one upward revision. This trend has caused the consensus estimate to trend lower, going from $4.77 a share a month ago to its current level of $4.32.

Also, for the current quarter, Charter Communications has seen two downward estimate revisions versus no revisions in the opposite direction, dragging the consensus estimate down to 51 cents a share from 65 cents over the past 30 days.

The stock also has seen some pretty dismal trading lately, as the share price has dropped 8.6% in the past month.

Charter Communications, Inc. Price and Consensus

Charter Communications, Inc. Price and Consensus | Charter Communications, Inc. Quote

So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don't have a long time horizon to wait.

If you are still interested in the Cable Television industry, you may instead consider a better-ranked stock - Cable One, Inc. CABO . The stock currently holds a Zacks Rank #2 (Buy) and may be a better selection at this time. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

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Charter Communications, Inc. (CHTR): Free Stock Analysis Report

Cable One, Inc. (CABO): Free Stock Analysis Report

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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.

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