Back to top

Image: Bigstock

Shaw Communications Gains From Growth of Wireless Business

Read MoreHide Full Article

On Sep 25, we issued an updated research report on Shaw Communications Inc. .

The company is a provider of broadband cable television services, Internet, digital phone, telecommunications services, Direct-to-Home (DTH) satellite services and satellite distribution services in the United States and Canada.

Solid growth in the Wireless business, as well as improving customer base in the Wireline Video: Satellite business, is the key catalyst for Shaw Communications.

 

Factors Influencing the Stock

Shaw Communications’ wireless business is benefiting from higher post-paid revenue generating units (RGUs) and improvement in average revenue per unit (ARPU).

Additionally, the company’s wireless operations, which cover almost half of the Canadian population, bode well. We are bullish about Shaw Communications’ initiative to deploy 700 MHz and 2500 MHz spectrum, which improves the network quality.

Moreover, the company continues to acquire spectrum licenses, which are likely to aid it in increasing customer base more efficiently. In 2017, the company bought 700 MHz and 2500 MHz wireless spectrum licenses from Quebecor Media for $430 million.

This includes 10 MHz of 700 MHz spectrum in British Columbia, Alberta and Southern Ontario, as well as 20 MHz of 2,500 MHz spectrum in Vancouver, Edmonton, Calgary and Toronto. The expanding addressable market is significantly positive and is expected to drive top-line growth in the months ahead.

The company is expected to benefit from an increasing data-driven environment. Strong wireless growth, coupled with improving wireline internet customer base, is positive for Shaw Communications.

Furthermore, Shaw Communications’ divestiture initiatives have helped it focus on the core business. In the last year, it completed the sale of data center operations, ViaWest. It also accomplished the divestiture of Shaw Media. The deal places Shaw Communications as a top pure-play telecommunications company.

All these bode well for this Zacks Rank #2 (Buy) stock.

Other Stocks to Consider

Some better-ranked stocks in the broader technology sector include Vishay Intertechnology, Inc. (VSH - Free Report) , Paycom Software, Inc. (PAYC - Free Report) and NetApp, Inc. (NTAP - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Vishay Electronics, Paycom Software and NetApp have long-term expected EPS growth rate of 9.2%, 25.5% and 14.1%, respectively.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>


See More Zacks Research for These Tickers


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


NetApp, Inc. (NTAP) - free report >>

Vishay Intertechnology, Inc. (VSH) - free report >>

Paycom Software, Inc. (PAYC) - free report >>

Published in