10 Cheap NASDAQ Stocks To Invest In Now

6. Charter Communications, Inc. (NASDAQ:CHTR)

Forward Price to Earnings Ratio: 11.57 

Earnings Growth: 13.70%

Number of Hedge Fund Holders: 48

Charter Communications, Inc. (NASDAQ:CHTR) is one of the biggest connectivity companies in the United States that provides various connectivity services to more than 37.1 million customers in 41 states around the country. The company operates under the brand name Spectrum and offers broadband internet, television, mobile, and video services to its customers.

With the rise in streaming services, customers have been ditching cable TV to save money. This trend has affected the business of Charter Communications, Inc. (NASDAQ:CHTR) as it continues to lose customers. During the third quarter results for fiscal 2024, the company lost around 9.5% of its Video customers compared to the third quarter of 2023.

Moreover, the company also lost around 110,000 internet customers due to the end of FCC’s Affordable Connectivity Program (“ACP”) in the second quarter. However, regardless of the decline in customers, the company was still able to grow internet revenue by 1.7% year-over-year to $5.9 billion mainly due to promotional rate step-ups and rate adjustments.

To fight the cord-cutting challenge, which is defined as the trend of customers leaving cable TV for streaming services, Charter Communications, Inc. (NASDAQ:CHTR) has announced that it will soon offer its TV Select Video customers streaming subscriptions of up to $80 per month with no extra charges. Management also announced the launch of “seamless entertainment” in the first half of fiscal 2025, which will include Max, Disney+, Peacock, Paramount+, ESPN+, AMC+, Discovery+, BET+, ViX, and Tennis Channel Plus.

Regardless of the challenges it faces concerning customer sentiment its financial fundamentals remain strong. The fiscal third quarter of 2024 came in with a revenue increase of 1.6% year-over-year to $13.8 billion, driven by growth in residential mobile service as it grew its total mobile lines by 29.6% year-over-year during the quarter.

Parnassus Value Equity Fund stated the following regarding Charter Communications, Inc. (NASDAQ:CHTR) in its first quarter 2024 investor letter:

“During the quarter, we added new positions in Pfizer, NICE and Charter Communications, Inc. (NASDAQ:CHTR). NICE is a leading cloud contact center software company. Charter’s stock had fallen due to near-term concerns, which we believe will not have a major impact on the long-term value of the business. Charter Communications has had several issues that created short-term uncertainty. We assessed that these issues have limited impacts on the long-term value of the business and initiated a position to take advantage of the stock’s historically low valuation.”