Back to top

Analyst Blog

Shares of Shaw Communications Inc. (SJR - Analyst Report) touched a fresh 52-week high of $25.93 yesterday, before ending the session a trifle lower at $25.91. Year-to-date, the company’s shares reflect a solid return of nearly 9%.

Strong EBITDA margin, higher free cash flow outlook, the expansion of Shaw Go WiFi networks, lower churn rate and continuous Internet subscriber growth were the catalysts behind the stock’s rally. Moreover, improved revenue growth buoyed by price increases has further supported a hike in share price.

Shaw Communications is gradually expanding its WiFi network. The Shaw Go WiFi facility is available in over 35,000 locations in Canada. Shaw Communications has deployed high-speed DOCSIS 3.0 network in several western Canadian markets under the brand name of “Nitro Internet Service." This technology offers 100 Mbps of download speed.

The company launched Shaw Gateway service, which offers more than 1,200 HD Video-on-Demand titles while enabling clients to link pictures and content from PC’s to TV’s. The company also introduced Personal Video Recorder service which allows viewers to record popular shows with 500 GB capacity full HD video support.

Launch of such value-added services will not only bolster the company’s top line but will also drive subscriber growth. In the recently concluded third quarter of 2014, the company added 12,399 and 4,834 subscribers for its Internet and Digital phone lines, respectively. Moreover, the company expects revenues in fiscal 2014 to increase in the range of 2–4%.

In addition, Shaw Communications continues to boost shareholders wealth by increasing dividend payments and buying back shares on a regular basis. In keeping with this, the company raised its annual dividend rate by 8% to $1.10 per share and has also authorized a repurchase of 20 million shares within a year.

Despite the strong price appreciation, this Zacks Rank #2 (Buy) stock still has plenty of upside left, given the positive earnings estimate revisions witnessed over the recent past. In the last 30 days, the company has witnessed upward revisions with the Zacks Consensus Estimate for earnings moving up by 1.9% to $1.62 for the current year.

Other Stocks to Consider

Investors interested in the related industry may look at stocks like Cablevision Systems Corp. (CVC - Analyst Report), News Corp. (NWSA - Analyst Report) and TELUS Corp. (TU - Analyst Report). All stocks carry a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%