Charter Communications, Inc. : Towards the breakout of a major resistance level
Entry price | Target | Stop-loss | Potential |
---|
US$551.37 |
US$637 |
US$519 |
+15.53% |
---|
Charter Communications, Inc. shares are trading close to a resistance zone which currently limits any upside potential. We expect that this level will be broken due to the stock's technical chart pattern.
Strengths● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● The group usually releases upbeat results with huge surprise rates.
● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The tendency within the weekly time frame is positive above the technical support level at 439.7 USD
Weaknesses● One of the major weak points of the company is its financial situation.
● With an enterprise value anticipated at 4.05 times the sales for the current fiscal year, the company turns out to be overvalued.
● With an expected P/E ratio at 48.18 and 30 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
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