The Story of Cable One
Cable One (CABO) is a company based in Phoenix, Arizona that specializes in providing data, video, and voice services to both residential and business customers across the United States. The services offered by Cable One range from Wi-Fi signal enhancements and digital video services with access to various channels, to a cloud-based DVR feature. Their IPTV video service, Sparklight TV, allows customers to stream cloud-based video through devices like Amazon Firestick, Apple TV, and Android-based smart televisions. As of now, Cable One proudly serves over one million residential and business customers combined.
Current Position: Zacks Rank #5
Despite its notable services, CABO finds itself placed in a difficult situation. The company is currently positioned as a Zacks Rank #5 (Strong Sell) within the Zacks Cable Television industry group, a sector ranking in the bottom 15% out of over 250 Zacks Ranked Industries. This positioning forecasts a challenging path ahead, with the industry group expected to underperform the market in the coming 3 to 6 months. The trend of underperformance in the industry places additional pressure on individual stocks like CABO.
Image Source: Zacks Investment Research
Troubling Earnings Trends
Cable One has seen its earnings fall short of estimates in the past four quarters. With a chronic pattern of underperformance, reflected in a trailing four-quarter average earnings miss of -22.81%, the company is facing significant headwinds. Recent revisions have seen analysts adjust downwards the earnings estimates for CABO, with a negative growth rate of -3.94% predicted for the current year compared to the previous year.
Image Source: Zacks Investment Research
