Why Charter Communications (CHTR) is a Top Growth Stock for the Long-Term

Zacks highlights Charter Communications (CHTR) as a potential growth stock, noting its Zacks Rank of #3 (Hold) with a VGM Score of A and a Growth Style Score of B. The company is projected to see 13.1% year-over-year earnings growth for the current fiscal year, with the fiscal 2025 Zacks Consensus Estimate increasing to $39.54 per share after four analysts revised their earnings estimates upwards in the last 60 days; CHTR also has an average earnings surprise of 5.1%.

Analysis

Charter Communications (CHTR), the second largest U.S. cable operator serving approximately 30.1 million customers as of December 31, 2024, currently holds a Zacks Rank of #3 (Hold) but exhibits strong underlying growth characteristics. The company has been assigned a VGM Score of A and a Growth Style Score of B, supported by a forecast of 13.1% year-over-year earnings growth for the current fiscal year. Further bolstering this outlook, four analysts have revised their fiscal 2025 earnings estimates upwards in the past 60 days, leading to an increase in the Zacks Consensus Estimate by $1.89 to $39.54 per share. Additionally, CHTR has demonstrated a consistent ability to outperform expectations, evidenced by an average earnings surprise of 5.1%. These metrics suggest positive momentum in earnings potential despite the neutral overall rank.

Key Decisions for Investors

• Investors should note Charter Communications' robust earnings growth forecast of 13.1% and positive fiscal 2025 estimate revisions, positioning it as a noteworthy candidate for growth-oriented portfolios.
• Despite the promising growth indicators and high VGM (A) and Growth (B) Style Scores, the Zacks Rank #3 (Hold) suggests that investors might consider CHTR for their watchlist and await further catalysts or a more favorable entry point.
• Monitor upcoming earnings reports and continued analyst estimate revisions closely, as sustained positive momentum could potentially lead to an upgrade in its Zacks Rank and strengthen the investment thesis.