5 Best Communication Stocks to Buy Now

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

Number of Hedge Fund Holders: 90
Market Cap: $131.529 billion

Charter Communications, Inc. (NASDAQ: CHTR) is a broadband connectivity and cable operator company that serves residential and commercial customers in the US. Based in Stamford, Connecticut, the company serves approximately 31 million customers in 41 states. Over the past 5 years, the stock price of Charter Communications, Inc. (NASDAQ: CHTR) is up an impressive 192%. Warren Buffett’s Berkshire Hathaway has also included the company in its portfolio. As of Mar 31, 2021, Charter had 31.4 million total customer relationships, with 1.7 million net new customer relationships added over the last twelve months. Moreover, the company earned revenues of $12.5 billion in 2020 which was a 6.7% year-over-year increase. In 2021, the first quarter earnings per share amounted to $4.11 which was up 121% from the preceding year. New Street analyst Jonathan Chaplin sees Charter’s subscriber growth picking up as industrywide churn increases because it has faster speeds and a more competitive product than its competitors. The company had 27.3 million residential internet customers in 2020, up 7.4% year over year. With a strong financial performance, Charter Communications, Inc. (NASDAQ: CHTR) has been selected as one of the 10 best communication stocks to buy now.

At the end of the fourth quarter of 2020, 90 hedge funds in the database of Insider Monkey held stakes worth $11.2 billion in Charter which is an increase from 88 hedge funds in the preceding quarter holding stakes worth $11.9 billion.

Avenir Capital said in its letter that Charter Communications, Inc. (NASDAQ: CHTR) was one of their biggest gainers. Here is what Avenir Capital has to say about Charter Communications in its letter:

“Our third biggest gainer was Charter Communications, the U.S. broadband connectivity business. Our opportunity to buy Charter came in early 2018 when the business was sold off heavily on fears of cable TV cord cutting and the impact of streaming businesses such as Netflix on traditional cable. We felt the bulk of Charter’s underlying value came from its broadband internet business, a highly concentrated industry in which Charter holds a dominant position, not the traditional cable TV business. Charter’s share price has increased by 112% since our initial purchase at US$313 per share, including an increase of 35% in 2020 to end the year at US$665 per share.”