Back to top

Analyst Blog

Communications service provider CenturyLink Inc. (CTL - Analyst Report) announced the launch of a fresh advertising campaign. The promotion will be carried out across the U.S. and shed light on the company’s advanced network, managed hosting and cloud capabilities.

The publicity will be accomplished via television, print and online ads and will focus on highlighting CenturyLink’s commitment to rendering global broadband, cloud infrastructure and varied IT solutions. Although the ads primarily emphasizes on the business offerings of the company, management stated that CenturyLink will continue to deliver broadband, entertainment and voice services to residential customers across the nation.

Monroe, LA-based CenturyLink believes that the new advertising strategy will draw attention to its capability to tender high scale and integrated end-to-end solutions to various businesses. This will help the third largest telecommunications firm in the U.S. to come closer to other top industry players – AT&T Inc. (T - Analyst Report) and Verizon Communications Inc. (VZ - Analyst Report).

However, we believe that the expenses associated with these promotional activities will increase the overall operating costs of the company, leading to margin pressure and lower profitability. Further, the company also faces headwinds such as deteriorating legacy voice and access revenues due to the loss of customers, intense competition from other low cost telecom operators like LEAP Wireless International Inc. and regulatory issues.

Despite these, we appreciate CenturyLink’s progress in key areas like broadband expansion, completing fiber builds, cloud computing and Prism TV. The company is also banking heavily on lucrative partnerships and expanding products to new territories to gather market shares. Additionally, synergies arising from Qwest and Savvis acquisitions are expected to support revenue growth.

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
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%