On Jul 4, 2015, Zacks Investment Research raised leading media and telecommunications company Cablevision Systems Corporation CVC by a notch to a Zacks Rank #2 (Buy).
Cablevision reported strong financial results in the first quarter of 2015 with both the top and the bottom line surpassing the Zacks Consensus Estimate. We believe that the company’s recent deal with Hulu to offer the latter’s on-demand services will help it to minimize its video customer churn rate. Moreover, Cablevision’s decision to launch HBO's online standalone streaming service, HBO Now, should help it gain broadband customers along with higher revenues.
Cablevision is consistently focusing on its WiFi network, referred to as the “Optimum WiFi Network”, for future growth. The company has already established more than 1.1 million WiFi hotspots across New York, New Jersey and the Connecticut region. Meanwhile, the company intends to step-up the expansion of its WiFi network by deploying access points in high-data usage areas.
Additionally, the company expects ongoing investments in the Wi-Fi network to continue to enhance the value of its Freewheel service. Notably, at least half of all Optimum Online customers have access to Optimum WiFi accounts. The company has also decided to deploy WiFi-equipped smart routers for its broadband customers. The deployment of smart routers will convert a customer’s residence into a public WiFi hotspot, which can be in turn utilized by other broadband customers.
For the current year, the company witnessed three upward estimate revisions over the last three months with the Zacks Consensus Estimate moving up by 2.4% to $0.86.
Other Stocks that Warrant a Look
Some other well-placed stocks in the sector are Shenandoah Telecommunications Co. SHEN, TELUS Corporation TU and Comcast Corporation CMCSA. All these stocks hold the same Zacks Rank as Cablevision.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment