Charter's Spectrum and Comcast's Xfinity have been losing high-speed internet subscribers for a few quarters now. Consumers are finding more cost-effective and convenient broadband service with providers that haven't been in the business for very long.

NFL Sunday Ticket and Peacock Sports Pass Now Available for Spectrum Business® Bars, Restaurants, Hotels and Other Commercial Venues via EverPass Media Spectrum Business Becomes EverPass' First Official Channel Partner STAMFORD, Conn. and NEW YORK , Aug. 1, 2024 /PRNewswire/ -- Spectrum and EverPass Media, a comprehensive media platform dedicated to commercial businesses, today announced an agreement offering Spectrum Business ® customers the ability to get NFL Sunday Ticket and Peacock Sports Pass via EverPass Media throughout Spectrum Business' 41-state footprint.

Telecommunications stocks have underperformed the overall market over the past year. The iShares U.S. Telecommunications ETF (NYSEARCA: IYZ ), the largest pure telecom ETF, has been flat, while the S&P 500 has rallied by 19% during this period.

The surge in stock price was due to lower-than-expected broadband net losses of 149,000. The impact of ACP disconnects will continue to 3Q24 and 4Q24. Our thesis remains unchanged, as we believe Charter will report broadband net adds thanks to peaking FWA growth and upgrades on its existing network. We believe Charter will remain committed to repurchasing shares and staying within its leverage target, given that it has been paying down debt in 2Q24.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Charter Communications shares surged 16% after solid Q2 earnings, as the company was able to reduce cap-ex plans, boosting free cash flow and enabling ongoing buybacks. Outside of mobile, Charter continues to see customer losses, though price increases and cost control are protecting EBITDA. Charter can generate about $2.5 billion in free cash flow this year and $3.5 billion by 2026, providing moderate upside to $400 by the end of 2025.

Investors need to pay close attention to Charter Communications (CHTR) stock based on the movements in the options market lately.

Charter Communications Inc CHTR reported better-than-expected second-quarter financial results on Friday.

What propelled Charter stock 16% higher after earnings was likely mainly short-covering. The market had certainly expected much worse results, but Charter Communications' attractive fundamentals were nicely on display in Q2. On the other hand, near-term headwinds remain and short-term speculation will likely take over again.

Despite the S&P 500 index repeatedly hitting all-time highs this year, many Wall Street analysts believe the run will continue. CrowdStrike Holdings got a public black eye for causing a global tech meltdown, but its stock price slump likely represents a buying opportunity.

Broadband subscribers declined in the quarter, but Charter still beat estimates. The company is growing in rural areas and through mobile phones.

Charter's (CHTR) second-quarter 2024 results reflect continued growth in Internet sales and residential mobile service revenues.