Is Charter Communications Stock Outperforming the S&P 500?

Valued at a market cap of $49.1 billion, Charter Communications, Inc. (CHTR) operates as a broadband connectivity and cable operator company serving residential and commercial customers. Based in Stamford, Connecticut, the company offers its customers subscription-based Internet, video, mobile, and voice services. It also distributes news coverage and sports programming to its customers.

Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and Charter Communications’ fits this criterion perfectly. The broadband connectivity company and cable operator serves more than 57 million homes and businesses in 41 states through its brand Spectrum. 

The telecommunications and mass media company dropped 16.8% from its 52-week high of $415.27. In the past three months, CHTR dipped 9.1%, lagging behind the S&P 500 Index’s ($SPX) 8.8% decrease.

However, shares of Charter Communications have risen marginally on YTD, surpassing SPX’s 6.1% decline. In addition, over the last 52 weeks, CHTR has gained 15.8%, outperforming the S&P 500, gaining 6.9%.

CHTR has been trading above its 200-day moving average since mid-July last year. Also, despite some fluctuations, the stock has been trading mostly above its 50-day moving average.

Shares of Charter Communications rose 2.6% on Jan. 31 after the company reported better-than-expected Q4 earnings of $10.10 per share and revenue of $13.9 billion. As of Dec. 31, the company served 9.9 million mobile lines, with 2.1 million mobile lines added in fiscal year 2024, although its total residential and SMB Internet customers decreased 2% year-over-year to 31.4 million. 

Further, in comparison, rival Comcast Corporation (CMCSA) fell behind CHTR. CMCSA shares went down 19.8% over the past 52 weeks and also decreased 7.5% on a YTD basis.

While the stock has outperformed broader market over the past year, analysts are cautiously optimistic about its prospects. CHTR has a consensus rating of “Moderate Buy” from the 24 analysts covering the stock. As of writing, CHTR is trading below the mean price target of $411.09.