10 Most Profitable NASDAQ Stocks To Invest In

4. Charter Communications Inc. (NASDAQ:CHTR)

TTM Net Income: $4.65 billion

5-Year Net Income CAGR: 27.95%

Number of Hedge Fund Holders: 48  

Charter Communications Inc. (NASDAQ:CHTR) is a telecommunications and mass media company with services branded as Spectrum. It’s a major cable operator in the US and offers a range of services, including high-speed internet, digital cable television, and home phone services. It’s known for its extensive network infrastructure and focus on providing high-quality services to its customers.

The company has formed a partnership with Warner Bros. Discovery to integrate linear video with streaming services. While facing intense competition in the broadband market, it has successfully expanded into rural areas, driven by government initiatives and its mobile service expansion. It recently reported strong second-quarter results, with revenue reaching $13.69 billion, with a modest 0.19% growth from a year-ago period. Mobile service in particular saw a significant increase of 36.9%. Internet service, the primary revenue driver, experienced a slight growth of 1.3%.

However, in this year’s second quarter, the company saw a fall in its total internet customer base, dropping by 149,000 to 30.4 million. Despite this downturn, the revenue did surpass Street expectations. The mobile sector grew by 557,000 lines, reaching a total of 8.8 million.

As October began, the company partnered with Comcast to provide its cable TV customers with free access to the Peacock streaming service to retain customers amid the growing popularity of streaming services. It also secured deals with other major content providers to offer its customers a variety of streaming options.

The company has demonstrated strong financial performance and a positive outlook despite challenging market conditions. In late September, it explored a potential merger with Liberty Broadband to acquire the Alaskan telecom giant GCI. With stable broadband trends and positive mobile growth, Charter Communications Inc. (NASDAQ:CHTR) is well-positioned for continued success.

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.”