8 Best Cheap Growth Stocks To Invest In Now

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

Forward P/E Ratio: 9.63

Earnings Growth This Year: 12.70%   

Number of Hedge Fund Holders: 48

Charter Communications, Inc. (NASDAQ:CHTR) is one of the biggest cable companies in the United States. It provides Internet, cable television, mobile, and voice services. The company also caters to businesses of all sizes to provide them with spectrum solutions.

It posted better-than-expected results in Q2 2024, despite losing significant broadband customers. Both residential and business customers fell by 149,000. The fall in customers was due to the end of FCC’s Affordable Connectivity Program subsidies. However, despite the decline in subscribers, total revenue grew 0.2% year-over-year to $13.7 billion. Revenue was ahead of consensus of $13.6 billion.

Charter Communications, Inc. (NASDAQ:CHTR) took advantage of its advertisement revenue which improved 3.3% year-over-year which was driven by higher political revenue. Moreover, the company also demonstrated significant cash-generation capabilities. Its free cash flow increased 94% when compared to the last year.

The stock is undervalued at current levels, making it one of the best cheap growth stocks to invest in now. It is trading at a forward price-to-earnings ratio of 10, its earnings are expected to grow by 12.70% this year.

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.”