8 Best Value Stocks to Invest In According To Warren Buffett

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

Expected Earnings Growth 2024: 12.80%

Latest P/E Ratio: 8.84

Warren Buffett’s Q2 2024 Stake: $1.14 Billion

Number of Hedge Fund Investors as of Q2 2024: 48

Charter Communications, Inc. (NASDAQ:CHTR) is a communication services company that offers subscription-based internet, video, mobile, and voice services and a suite of broadband connectivity services. While facing the cord-cutting menace, the company has been executing well on several initiatives, growing EBITA through various efficiencies.

Charter Communications, Inc. (NASDAQ:CHTR) has delivered solid financial results amid a challenging business environment by improving service and sales capabilities. For starters, its revenues in the second quarter were up 0.2% to $13.7 billion, beating analysts’ estimates of $13.6 billion. Earnings, on the other hand, increased 2.6% to $5.7 billion.

Amidst challenges in the broadband market, which negatively impact the growth of the main customer base, Charter Communications, Inc. (NASDAQ:CHTR) is experiencing some success in growing its user base in rural areas. This is due to a government initiative aimed at increasing broadband availability in rural regions and its venture into the mobile sector.

In a bid to pursue long-term growth, Charter Communications, Inc. (NASDAQ:CHTR) is analyzing the possibility of merging with Liberty Broadband. The merger will provide access to Alaskan telecom giant GCI, offering it an opportunity for future value creation.

While trading at a price-to-earnings multiple of 9.07, the stock appears to be selling at a discount, given that its earnings are projected to grow by 29.60% in the next quarter and 12.50% in the current year.

Out of the 912 hedge funds listed in Insider Monkey’s Q2 2024 database, 48 had invested in Charter Communications, Inc. (NASDAQ:CHTR). The largest stake, valued at $1.89 billion, was held by Harris Associates of Natixis Global Asset Management.