New Lifetime High Reached By Charter Communications (CHTR)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Charter Communications ( CHTR) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Charter Communications as such a stock due to the following factors:

  • CHTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $139.8 million.
  • CHTR has traded 15,308 shares today.
  • CHTR is trading at a new lifetime high.

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More details on CHTR:

Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. Currently there are 3 analysts that rate Charter Communications a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Charter Communications has been 1.2 million shares per day over the past 30 days. Charter has a market cap of $15.9 billion and is part of the services sector and media industry. The stock has a beta of 0.40 and a short float of 6.7% with 5.62 days to cover. Shares are up 7.7% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Charter Communications as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and increase in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 26.68% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • CHARTER COMMUNICATIONS INC has improved earnings per share by 16.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, CHARTER COMMUNICATIONS INC continued to lose money by earning -$1.71 versus -$3.07 in the prior year. This year, the market expects an improvement in earnings ($0.70 versus -$1.71).
  • The gross profit margin for CHARTER COMMUNICATIONS INC is currently lower than what is desirable, coming in at 34.29%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.68% is significantly below that of the industry average.
  • The debt-to-equity ratio is very high at 110.94 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.15, which clearly demonstrates the inability to cover short-term cash needs.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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