On Dec 26, we issued an updated research report on Altice USA, Inc. (ATUS - Free Report) .
The broadband communications and video services provider is well on-track with its five-year plan to build a FTTH (fiber-to-the-home) network and deploy its home communications hub. The company believes that the FTTH network will be more resilient with reduced maintenance requirements, fewer service outages and lower power usage. This will enable Altice to cater to demand for increasing speed and support evolving technologies, such as the transition of mobile networks to 5G. It will also allow it to capitalize on allied revenue-growth opportunities. Moreover, the company is building a next-generation fiber network to deliver broadband speed of 10 Gbps, highlighting its continual investment in technology and innovation for customers in the United States.
Altice recently announced that it has inked a $25-million multi-year partnership with The Shed to provide the non-profit organization with advanced fiber network connectivity and related infrastructure, aiding people to connect to enriching cultural experiences through technology. To be inaugurated in spring 2019, The Shed reportedly will be the new arts center in Manhattan’s west side, which aims to promote original works of art across all disciplines for varied audiences.
Further, the company introduced the Altice One Operating System (OS) 2.0 — a version 2 upgrade to its Altice One entertainment and connectivity platform. The Altice One OS 2.0 boasts enhanced features for instance providing customers access to the cloud DVR from the Altice One mobile app, access to the YouTube Kids app, more 4K content, and live show restart on more than 20 additional networks. As an all-in-one entertainment system, Altice One is available to Optimum and Suddenlink cable customers.
Altice augmented its market position as a pioneer in the advertising business with the launch of a4 — an advanced advertising tool — to provide audience-based, multiscreen advertising solutions for its clients. The company has successfully implemented a strategic plan to strengthen its footprint in digital advertising through multiple acquisitions and investments. For full-year 2018, Altice anticipates revenue growth of 2.5-3% year over year. The company also reiterated the plan to expand its adjusted EBITDA and cash flow margins, over the medium to long term.
Shares of Altice have lost 15.1% compared with the industry’s decline of 20.4% in the past three months.
We remain impressed with the inherent growth potential of this Zacks Rank #1 (Strong Buy) stock. Some other stocks in the industry worth considering are Arista Networks, Inc. (ANET - Free Report) , Vocera Communications, Inc. (VCRA - Free Report) and ARRIS International plc (ARRS - Free Report) . While Arista and Vocera sport a Zacks Rank #1, ARRIS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista has a long-term earnings growth expectation of 21.7%.
Vocera has a long-term earnings growth expectation of 18.7%.
ARRIS has a long-term earnings growth expectation of 6.5%.
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