Back to top

Image: Bigstock

Are Investors Undervaluing Charter Communications (CHTR) Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Charter Communications (CHTR - Free Report) . CHTR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

We also note that CHTR holds a PEG ratio of 0.45. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CHTR's industry has an average PEG of 1.20 right now. Over the past 52 weeks, CHTR's PEG has been as high as 1.67 and as low as 0.38, with a median of 0.59.

Finally, investors will want to recognize that CHTR has a P/CF ratio of 4.03. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.63. Within the past 12 months, CHTR's P/CF has been as high as 4.43 and as low as 2.80, with a median of 3.67.

These are just a handful of the figures considered in Charter Communications's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CHTR is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Charter Communications, Inc. (CHTR) - free report >>

Published in