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Charter Communications' (CHTR) Spectrum Expands in Alabama

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Charter Communications' (CHTR - Free Report) division, Spectrum, recently announced the launch of its Internet, mobile, TV, and voice services in Cullman County, AL, to serve more than 1,900 homes and small businesses.

Spectrum’s portfolio of residential and business services includes Spectrum Internet, Spectrum Mobile, Spectrum TV, and more.

Spectrum, through its Rural Digital Opportunity Fund, aims to bring gigabit broadband to unserved communities in Alabama and across other states in the United States. The company expects to deliver broadband speeds of up to 1 Gbps and advanced WiFi for residential and small business customers, featuring starting speeds of 300 Mbps, with no modem fees, data caps or contracts.

Along with Spectrum Internet, the company also launched Spectrum Mobile and Spectrum TV in Alabama. Together, these aim to provide seamless connectivity inside and outside the home and offer more than 270 HD channels and access to 85,000 on-demand movies and shows.

Spectrum’s Growing Initiatives to Expand Reach

Charter Communications’ division Spectrum is continuously investing to expand its footprint across the United States and boost its customer base, which is expected to drive top-line growth in the near term. Spectrum currently serves more than 32 million customers across 41 states in the United States. Spectrum also has a broad portfolio of enterprise clients, which include Red Studios Hollywood, Redman Realty Group, and many more.

The Zacks Consensus Estimate for Charter Communications’ fiscal 2023 revenues is pegged at $54.62 billion, indicating growth of 1.1% year over year.

The consensus mark for earnings has decreased by a penny over the past 30 days to $8.93 per share.

Previously, Spectrum had launched its services in Carroll County, GA, Bladen County and Wayne County, NC, Val Verde, CA, and Cleveland County and Southampton County, VA.

Spectrum’s Partner Base Aids Prospects

Spectrum and its divisions also have a strong partner base with companies like Cisco Systems (CSCO - Free Report) , RingCentral (RNG - Free Report) , AOC Connect, and many more.

Spectrum recently introduced Secure Access with Cisco Duo and Cloud Security with Cisco+ Secure Connect, aiming to enhance cybersecurity solutions for businesses.

Spectrum has also teamed up with RingCentral to offer SMBs and other enterprise customers high-speed Internet and network solutions, as well as a reliable, secure and user-friendly communications platform.

However, in the past six months, Charter Communications’ shares have declined 7.8% compared with the Zacks Consumer Discretionary sector’s decline of 0.3%. The decline is attributed to persistent video-subscriber attrition, primarily due to cord-cutting and stiff competition.

Zacks Rank & Stock to Consider

Currently, Charter Communications carries a Zacks Rank #4 (Sell).

A better-ranked stock in the broader Consumer Discretionary sector is Netflix (NFLX - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Netflix shares have returned 41.7% in the past year. The long-term earnings growth rate for NFLX is pegged at 21.3%.

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