Will Charter Communications rise from the oversold region?
- Fundamental strengths helped Charter Communications rise from the bear market in the last two weeks.
- The company report growth in customers, revenues, and earnings.
- Charter Communications is projected to gain towards a valuation of $490.
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Charter Communications (NASDAQ:CHTR) is up 1.19% this week to trade at $465. This is the stock’s second week in a gaining streak that defies market bears. Last week, the counter closed 7.30% higher.
In the Q1 earnings call two weeks ago, Charter Communications reported growth in EPS from $4.11 to $6.59. The revenues increased from $12.52 billion to $13.2 billion in Q1. The growth was supported by an increase in customers across all revenue units. This included residential internet connections, residential video, and voice.
The performance of Charter Communications bears the hallmarks of fundamental strengths. This makes the stock a good pick for value and growth investment. Zacks research A-rated the stock on both value and growth. On momentum, the stock is F-rated. It is these strong fundamentals that pulled Charter Communications from the bear trend.
Charter Communications is recovering from a dip
Price chart analysis shows that the stock may have established support at around $430. Time will demonstrate whether the support will hold. At the price of $465, the stock is trading at an RSI of 30.55. Therefore, the stock is just emerging from the oversold region. This analysis projects that Charter Communications is likely to gradually rise to a valuation of $490. Under the current market circumstances, the stock is unlikely to cross above $500.
Overall, Charter Communications remains fundamentally strong as a value and growth stock. Recent performance shows the stock will weather the bear market pressures. We project that the stock will rise to $490.
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